Originally, this deduction was extended a number of years through 2011. Assuming that you itemize, you can choose to take a deduction for the sales tax that you paid during the year instead of taking an itemized deduction for income taxes paid. The deduction is not based upon the total of your actual sales taxes paid on purchases for the year. Instead, you are limited to IRS provided tables. The only additions to the IRS provided numbers are sales taxes on vehicles and building materials.

This deduction primarily benefits individuals living in states that eihter do not have a state income tax such as Florida, Texas or Washington or states that do not tax IRAs, pensions and social security benefits, e.g. Illinois.

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