Do You Know How Much Sales Tax You Pay?

Sales Tax deduction tables issued

As promised, the IRS has finally given us the tables we can use to calculate the sales tax deduction. (See our previous post on this deduction).

I'm a little underwhelmed at the tax from the table; for instance, a family of four that makes $70,000 is only given a $1,001 sales tax deduction. At 7.6% tax, that means the IRS assumes you only spend $13,100 each year on sales-taxable items. I guess if you back out all of the non-sales-taxable expenditures you make (rent/mortgage payments, groceries, utilities, etc.) it might approach reality.

Of course, you also get to add the tax paid on certain major purchases. These are now spelled out by the IRS as the following:

• Motor vehicles - (including car, motorcycle, motor home, recreational vehicle, sport utility vehicle, truck, van, and off-road vehicle)
  
• Aircraft
  
• Boats
  
• Homes or home building materials

Specifically excluded -- sales tax paid on business purchases.