Did you know that state income taxes are deductible? It’s true! If you paid tax to any state or had state tax withholding, you are able to take a deduction for those amounts on your tax return. Didn’t pay state income tax? No worries. You may be able to deduct sales tax you paid during the year on purchases. Talk to your tax professional about how to take advantage of this valuable deduction. Don’t have a tax professional? Ask Ms. Tax!