Tax free sales present an opportunity for residents of 17 (mostly Southern) states to purchase clothes, shoes, electronics, and even firearms or ammunition without paying a penny in sales tax.[1] But because these sale dates usually only last a weekend, it’s important to do your homework so that you can plan your purchases to save the most money. Below are some tips and tricks to help you save during tax free weekend.
Learn your Savings Categories
Each state has its own restrictions and classifications on the purchases that will be tax free.[2] Before you head out to the stores, take a quick look at your sales limits:
· Alabama
o Clothing up to $100
o Computers up to $750
o School supplies up to $50
o Books up to $30
· Arkansas
o Clothing up to $100
o School supplies
· Connecticut
o Clothing and footwear up to $100
· Florida
o Clothing up to $60
o Computers up to $1,000
o School supplies up to $15
o Disaster preparedness supplies
· Iowa:
o Clothing up to $100
· Maryland
o Clothing and footwear up to $100
· Massachusetts
o All products (with some restrictions) up to $2,500
· Mississippi
o Clothing and footwear up to $100
o Firearms, ammunition, and hunting supplies
· Missouri
o Clothing up to $100
o Computers up to $1,500
o School supplies up to $50
· New Mexico
o Clothing up to $100
o Computers up to $1,000
o Computer equipment up to $500
o School supplies up to $50
· Ohio
o Clothing up to $75
o School supplies up to $20
· Oklahoma
o Clothing up to $100
· South Carolina
o Clothing, school supplies, computers, and other items
· Tennessee
o Clothing up to $100
o School supplies up to $100
o Computers up to $1,500
· Texas
o Clothing, backpacks, and school supplies up to $100
· Virginia
o Clothing up to $100
o School supplies up to $20
o Energy Star products up to $2,500
o Hurricane preparedness items up to $50
o Generators up to $1,000
· West Virginia
o Clothing up to $125
o School supplies up to $20
o Sports equipment up to $150
o Computers or tablets up to $500
Make a List
Once you have your savings categories, it's time to make a list. Tax-free weekends often include back-to-school items like clothing, shoes, and electronics, which is one reason they tend to be held in July and August. It's a good idea to do your back-to-school shopping this weekend to save as much as possible.
Keep an Eye on Prices
Although you can still find some sales and clearance items during tax free weekend, other prices may be higher than normal.[3] It's a good idea to check out the prices on the items you're looking for a week or two before the tax-free weekend just so you can make sure you're getting the best possible deal. After all, saving 10% in sales tax on a $1,500 computer may seem like a good idea—unless you saw the same computer on sale for $1,250 the prior week.
[1] https://www.taxadmin.org/2021-sales-tax-holiday [2] https://www.taxadmin.org/2021-sales-tax-holiday [3] https://slate.com/business/2015/08/back-to-school-tax-holidays-theyre-tempting-and-theyre-worthless.html
Sources https://slate.com/business/2015/08/back-to-school-tax-holidays-theyre-tempting-and-theyre-worthless.html
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