You can only deduct either state and local income taxes or state and local general sales taxes when itemizing deductions on your federal tax return. This is included or described in the State and Local Tax (SALT) deduction regulations. If you live in a state that doesn't charge income tax (like Florida or Texas), choosing to deduct state and local sales taxes could be more advantageous. In contrast, if you pay substantial state and local income taxes, it often makes more sense to deduct them rather than pay them. This enables taxpayers to select the most advantageous deduction, but it also prevents taxpayers from double-dipping by claiming both in the same year. Using this method is a useful way to tailor deductions to individual circumstances.