You are permitted under federal tax laws to claim the amount you pay for state and local income taxes as deductions. Sales tax imposed on state and local levels is also considered an eligible deduction. The IRS allows you the option of taking a sales tax deduction in lieu of state and local taxes. However, you cannot deduct both. Optional state sales tax information can be found in IRS Publication 600. Other taxes involving foreign income, personal property, and self-employment businesses may be claimed as deductions as well. These tips are meant to provide general information on federal income taxes. For specific advice, please consult a tax advisor or call the toll-free number for Federal Tax Information and Assistance at 1-800-829-1040.