In the state of Maryland, how much sales tax (if any) can you write off?
by 
Chosun One
ANSWERS: 2
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You cannot write off sales tax. Neccesary evil of capitalism. ;)
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Actually, you have the option of claiming sales taxes on your federal return in lieu of your total of state and local income taxes paid during the year (typically your W-2 withholding). You do not need to save all your receipts - the IRS publishes a chart where you look up your state and use a grid to match up the number of exemptions claimed and your AGI to get a figure you can include on Schedule A. Note that you can only do this if you itemize deductions. This method however, is typically not beneficial, except in years where you make a large purchase (typically a car or boat) - you can also deduct the sales taxes paid for that purchase in addition to the number from the chart. No state that I am aware of allows any deduction for sales taxes paid on a state income tax return. (It doesn't make any logical sense to allow any deduction at the state level, anyway).
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