The IRS announced today (IR-2009-60) that the special deduction for sales taxes on a new car purchased in 2009 (after February 16) also extends to taxpayers in those states without a sales tax — Alaska, Delaware, Hawaii, Montana, New Hampshire and Oregon.  Taxpayers in these states who purchase a new car in 2009 can deduct other fees and taxes imposed by the state or local government. According to the IRS, Congress intended for these fees or taxes to qualify for this special tax deduction.

The deduction is available even if the taxpayer does not itemize deductions.  The deduction is limited to the fees or taxes paid on up to $49,500 of the purchase price of a qualified new car, light truck, motor home, or motorcycle. The amount of the deduction is phased out for taxpayers whose AGI is $125,000- $135,000 (single) and $250,000-$260,000 (married filing jointly).