< Back to IRS

Savannah Weiner

Where to find the Sales Tax Deduction Calculator for 2025 tax filing?

Hey tax fam! So I just did the math and with my new house purchase, it looks like I'll be itemizing my deductions this year instead of taking the standard deduction (finally making those mortgage interest payments work for me!). I started looking at the IRS Sales Tax Deduction calculator online so I could figure out how much I could deduct, but weirdly it doesn't seem to accept 2024 as a year option. The dropdown just doesn't have it. Has this calculator been discontinued? I was counting on that extra deduction since I made some big purchases this year. Does anyone know if there's an alternative calculator I can use, or am I just looking in the wrong place? I really don't want to miss out on maximizing my itemized deductions for this coming tax season.

The IRS Sales Tax Deduction calculator typically gets updated late in the year or sometimes even in January for the new tax season. It's not unusual that it doesn't have 2024 as an option yet - they're probably still updating it for the coming tax season. In the meantime, you can use the 2023 calculator as a reasonable estimate. The sales tax tables don't change dramatically from year to year, though there may be some adjustments for inflation. When you're ready to file your actual 2024 taxes (in 2025), the updated calculator should be available. Remember that you have to choose between deducting state income tax OR sales tax - you can't do both. Most people benefit more from deducting state income tax unless you live in a state with no income tax or made significant purchases during the year.

0 coins

Thanks for the info! So if I live in Texas (no state income tax), I should definitely be using the sales tax deduction, right? Also, if I made some big purchases like a new fridge and washer/dryer this year, can I add those specific sales taxes on top of what the calculator says?

0 coins

Yes, if you live in Texas, the sales tax deduction is definitely the way to go since Texas doesn't have state income tax. That's exactly what this deduction was designed for - to give people in states without income tax a comparable deduction option. For your large purchases like the fridge and washer/dryer, absolutely - you can add the actual sales tax paid on those items to the amount from the calculator. The calculator provides a base amount for regular everyday purchases, and then you can add the sales tax from major purchases on top of that. Just make sure to keep your receipts for those big items in case of an audit.

0 coins

I had the same issue last year when filing! Let me tell you about something that saved me a ton of time - I started using taxr.ai (https://taxr.ai) which has updated calculators for all these deductions including sales tax. I was pulling my hair out trying to figure out the sales tax deduction since I had made a bunch of big purchases, and their tool calculated everything automatically after analyzing my receipts. They have this feature where you can just upload photos of your receipts and it extracts all the sales tax info automatically. Saved me hours of manually adding everything up, and I actually found I was eligible for more deductions than I realized.

0 coins

Does this taxr.ai thing work for other deductions too? I've got a home office and tons of business expenses I need to calculate.

0 coins

I'm always skeptical of these tax tools. How accurate is it really? Does it know the specific rules for different states? I'm in Washington and we have some weird sales tax rules.

0 coins

Yes, it actually works for pretty much all deductions! The home office deduction is one of its specialties - it helps calculate the square footage percentage and applies it to relevant expenses. For business expenses, it categorizes everything automatically when you upload receipts or bank statements. For state-specific rules, it's surprisingly good at handling the differences. I have family in Washington state too, and they use it without issues. The system is updated with all the latest tax codes and regulations for each state, including those weird local sales tax variations Washington has. What impressed me most was how it flagged certain deductions that might trigger an audit so I could double-check my documentation.

0 coins

Just wanted to update after trying taxr.ai that the other commenter mentioned. I was super skeptical at first (as you could probably tell from my comment), but I decided to give it a shot since I was struggling with the sales tax deduction calculator issue too. It actually worked amazingly well! I uploaded my receipts from major purchases and it calculated the exact sales tax amount I could add to the base table amount. It also found a bunch of deductions I would have missed. The sales tax calculator was right there and already updated for 2024/2025 filing. Wish I'd known about this tool earlier instead of messing around with the outdated IRS calculators.

0 coins

If you're still having trouble reaching the IRS for questions about the sales tax deduction calculator, try Claimyr (https://claimyr.com). I spent DAYS trying to get through to the IRS about my itemized deductions last year with no luck - constant busy signals and disconnections. Claimyr got me connected to an actual IRS agent in about 15 minutes who confirmed the calculator gets updated late in the year and gave me some alternate ways to calculate my sales tax deduction. They also have a video showing how it works: https://youtu.be/_kiP6q8DX5c I was amazed how quickly I got through after wasting hours trying on my own.

0 coins

How does this even work? The IRS phone system is notoriously impossible to navigate. Are you telling me this service somehow jumps the queue or something?

0 coins

Sounds like a scam to me. No way they can get you through faster than anyone else. The IRS wait times are the same for everyone.

0 coins

It doesn't jump the queue - it automates the calling process. Basically, it continually calls the IRS for you and navigates the phone tree until it gets in the queue, then calls you when it has a real person on the line. It's just saving you from having to manually redial over and over when you get disconnected. Not a scam at all - it's just automating what would be an incredibly frustrating manual process. Think of it as a robot assistant making the calls for you instead of you having to sit there hitting redial for hours. They don't have special access to the IRS or anything like that - they're just using technology to handle the most annoying part of the process.

0 coins

I need to eat my words from my earlier comment. I was SUPER skeptical about Claimyr, but after another failed attempt to reach the IRS myself about my sales tax deduction questions (spent 2 hours on hold before getting disconnected!), I decided to try it. Holy crap, it actually works. Got connected to an IRS agent in about 20 minutes who confirmed the Sales Tax Deduction Calculator should be updated by January and gave me some tips for estimating it now. Saved me literally hours of frustration. Never been so happy to be wrong about something!

0 coins

Pro tip: If you're waiting for the updated calculator, you can also look at your actual spending for the year. If you use credit cards for most purchases, your year-end statement might show total spending by category. Then apply your state's sales tax rate to the taxable categories. Can be more accurate than the IRS calculator anyway, which is just an estimate based on income and state.

0 coins

Would this approach still work if my state has different sales tax rates for different categories? Like food is taxed different than electronics where I live.

0 coins

That's a good question about varying tax rates. This approach takes more work if your state has different rates for different categories, but it's still doable. You'd need to break down your spending by those different categories and apply the appropriate tax rate to each. For example, if you spent $5,000 on electronics taxed at 6% and $10,000 on general merchandise taxed at 4%, you'd calculate them separately. Some credit card year-end summaries actually break spending down by category which makes this easier. It's more work than the IRS calculator, but potentially more accurate if you have the time.

0 coins

Has anyone successfully used the sales tax deduction calculator in previous years? I'm wondering if it's worth the effort or if I should just stick with my state income tax deduction.

0 coins

I used it last year and saved about $300 more than if I'd deducted state income tax. I'm in Illinois where we have state income tax, but I made some big purchases. It's definitely worth checking both ways.

0 coins

I'm in a similar boat with itemizing for the first time this year! The IRS usually updates their calculators around December/January, so it's totally normal that 2024 isn't available yet. For now, you can get a rough estimate by using last year's calculator and adjusting for any major purchases you made in 2024. Since you mentioned big purchases with your new house, don't forget that you can also deduct sales tax on things like furniture, appliances, and even your car if you bought one this year - just keep all those receipts! The key is to compare your estimated sales tax deduction against your state income tax amount when you're ready to file. Whichever is higher is what you'll want to claim. Given that you're itemizing anyway for mortgage interest, it's definitely worth running both calculations to see which gives you the bigger deduction.

0 coins

IRS AI

Expert Assistant
Secure

Powered by Claimyr AI

T
I
+
20,087 users helped today