How to know LOCAL sales tax info for Schedule A on 1040?

Question

I see the IRS has a table to look up the STATE sales tax based on your income range. But what if you live in one of the UNLISTED states, then how to you know what number to use for the "Local general sales tax rate?" Many states have A, B, or C listed under the local section, but many states aren't listed at all. Please explain, with links if possible.

Rob, try again. The state I am in DOES charge state sales taxes. This has nothing to do with W2 income.

Say you live in NM, TN, TX, or FL. ALL of those states charge a state sales tax. But if you lived in those states, what LOCAL rate would you use? The IRS has the tables for all 50 states for the state rate, but only SOME states have the LOCAL rate listed. So how do you know if you should use local table A,B,C,or D for each of those states I mentioned when those particular states dont have a corresponding Local table??

http://www.irs.gov/pub/irs-pdf/p600.pdf

Say the software is TAXACT, but even if not, the IRS is not clear. So if your state is not on the list to look up the local table, you are on your own to determine or guess your local tax rate?

Answer 1

Any state that is not listed, does not have a state sales tax, an example is Delaware, they do not have a state sales tax

If you live in one of the states that doesn't have a sales tax you would use your state and local income tax withheld from your pay check. this would be shown on your W2

Update.
If you had provided all the additional information in your original question, I could have and would have been able to give you a more detailed answer.
You can contact your local city hall or a local goverment office to find out if there is a local sales tax and if so what the rate is.

Answer 2

I suggest going to the web site for the respective state's Department of Revenue, Division of Taxation, Tax Commission, or whatever its name is. For example, New Mexico has a publication that displays the gross receipts (this is their sales tax) rates for all localities. You just need to compare the total rate for a locality with the state rate, and enter the difference in your software as an additional local rate. The referenced publication is for the July-December, 2006 period. There is a different one for the January-June, 2006 period. See the NM publication at:

http://www.tax.state.nm.us/pubs/GrossReceiptsRates/gr_rates_jul_06.pdf

Answer 3

From your question it sounds like your software is asking for a rate, not a total dollar amount, for local. If you live somewhere that has a local sales tax, you should know what the rate is. If you don't, call the local government offices and ask - they should be able to tell you.

Note that most cities, even in a state that collects sales tax, don't have a local sales tax. If you've never heard that you have one, maybe you don't, in which case you'd enter zero.

Answer 4

Since you didn't bother to say which state you live in it's not possible to give a better answer. Not all states levy a sales tax and if the state isn't listed, that state does NOT levy one.

Answer 5

There was a formula for this that the IRS released a few years ago. You need to back in to the total.

You take the amount from the chart and divide it by your state rate. You take the result and multiply it by your total rate. The calculation will give you your deduction amount.

Here is an example:
Total sales tax rate = 8.25%
State Rate = 6.25%
Local = 2.00%
Amount per IRS chart for your state = $1000.

$1000 / .0625 = $16,000
$16,000 x .0825 = $1320
$1320 = Deduction Amount