Sales tax on new cars can be calculated from the year 2009 by deducting the tax at source and adding it to the deduction. The vehicles that are covered under the new sales tax regime are cars, trucks, motorcycles, motor homes and recreational vehicles. All these vehicles must be brand new and should not weigh more than 8500 pounds. The time period for which this tax is valid on purchase is from the 16^th February, 2009 to the 1^st of January, 2010. The new sales tax rule does not make it compulsory for the owner to itemise his/her vehicle. The deduction for sales tax on new cars can be clubbed along with the other state and local income taxes. If sales tax on new cars is deducted instead of the other taxes at source, then it can be clubbed with the other taxes that need to be paid. However, the sales taxes on new cars have certain limitations. The maximum amount for which we can claim a deduction at the source of tax is the primary $49,500 of the price at which the car was bought. This is however exempt from the tax that is already paid on the purchase price of the vehicle. If the purchase price of the car exceeds the primary $49,500, then one needs to distribute the sales tax accordingly. Individuals earning a gross salary of $125000 can directly qualify to avail of the deduction of the tax on cars. Couples can file for deduction provided they have an income of $250000 to $260000. To effectively allocate the taxes according to this income slab one needs to modify their gross income. This modified gross income will now operate as the adjusted gross income. In order to calculate the distribution of sales tax, the adjusted gross income over the allotted limit should be divided by $10000. The result should subsequently be subtracted from the total sales tax paid on the vehicle. All these regulations will work only if the vehicle is bought. These rules for tax on new cars do not hold good for leased vehicles.