An excise tax isn't deductible if it's for a personal expense. You can deduct as a business expense excise taxes that are ordinary and necessary expenses of carrying on your trade or business. ... Include state and local sales tax, or any excise tax paid on the purchase of a vehicle as part of the cost of the vehicle.

Is mass excise tax deductible?

A: Yes, vehicle excise tax is a proper itemized tax deduction. ... A: The MA Excise tax on autos is in the nature of a personal property tax, such as other states impose on their citizens. It is, therefore, deductible, provided you itemize your deductions.

Is excise tax a sales expense?

The excise tax paid cannot be deducted from ordinary income but is an expense of the sale that reduces the amount realized.