Avoid Paying Sales Tax

by MHanley on August 13, 2010

If you live in Alaska, Delaware, Montana, New Hampshire, or Oregon, you are already enjoying sales tax-free shopping.  However, in the other 45 states, there is some form of sales tax, which can be as high as 10%.

With back to school shopping season underway, 18 of those 45 states are offering their annual “Sales Tax Holiday:”

 

Alabama: Aug. 6 to Aug. 8

For the fifth year in a row, Alabama’s is waiving its 4% state sales tax on clothing (limited to clothing that costs $100 per item or less), computers (up to $750), school supplies (up to $50 per item) and books (up to $30 per book). Accessories and sporting goods are excluded and  local sales tax may still apply.

 

Connecticut: Aug. 15 to Aug. 21

Connecticut’s sales tax holiday runs annually for one week starting on the third Sunday in August and ending on the following Saturday. Clothing and footwear that cost less than $300 per item are exempt from Connecticut’s 6% sales tax.

 

Florida: Aug. 13 to Aug. 15

For the past two years, Florida has not offered a sales tax holiday. However, they are bringing it back this year. Books, clothing and footwear selling for under $50 per item and school supplies under $10 per item will be exempt from Florida’s 6% tax. But the exemption does not apply to items purchased within a theme park (i.e. Disneyland), entertainment complex, or airport.

 

Illinois: Aug. 6 to Aug. 15

Illinois will lift their 5% sales tax on footwear and clothing (limited to items selling for less than $100 per item) and for school supplies.

 

Iowa: Aug 6 and Aug. 7

On the first Friday and Saturday of August, Iowa exempts clothing and footwear from its 6% state sales tax (limited to items that cost less than $100 per item). For the purpose of this sales tax exemption, diapers are considered cloting and are exempt from sales tax.

 

Louisiana: Aug. 6 and Aug. 7

Although Louisiana offers one of the shortest sales tax holidays, they do offer one of the more generous holidays.  Its 4% state sales tax is not charged on the first $2,500 of the purchase price of most items including clothing, furniture, electronics, etc. Cars are not exempt from sales tax and local taxes still apply.

 

Maryland: Aug. 8 to Aug. 14

Maryland has dubbed their annual sales tax holiday “Shop Maryland Week,” which starts on the second Sunday of August.  Clothing and footwear that costs $100 or less per item is exempt from Maryland’s 6% sales tax.

 

Massachusetts: Aug. 14 and Aug. 15

Like Louisiana, Massachusetts offers one of the most generous sales tax holidays. Most items costing less than $2,500 are exempt from Massachussets’ 6.25% sales tax.

 

Mississippi: July 30 and July 31

For the second year in a row, Mississippi exempts clothing and footwear costing $100 or less per item from the 7% sales tax. 

 

Missouri: Aug. 6 to Aug. 8

Clothing and footwear costing $100 or less per item, school supplies costing up to $50 per purchase, computers costing up to $3,500, and software costing up to $350 are exempt from the state sales tax. Local sales tax may apply.

 

New Mexico: Aug. 6 to Aug. 8

New Mexico’s “Gross Receipts Holiday” started back in 2005. Clothing and footwear costing under to $100 per item, computers costing up to $1,000, computer equipment costing up to $500, school supplies costing up to $15 per item, backpacks costing up to $100, and calculators costing up to $100 are excluded from the 5% sales tax. For more details, click here.

 

North Carolina: Aug. 6 to Aug. 8

Clothing, footwear, and school supplies costing up to $100 per item, computers costing up to $3,500, computer equipment costing up to $250 per item, and sporting goods costing up to $50 per item are exempt from North Carolina’s 5.75% sales tax.

 

Oklahoma: Aug. 6 to Aug. 8

Clothing and footwear costing up to $100 per item are exempt from Oklahoma’s 4.5% sales tax.

 

South Carolina: Aug. 6 to Aug. 8

Clothing, footwear, school supplies, computers, linens, and accessories are exempt from South Carolina’s 6% sales tax.

 

Tennessee: Aug. 6 to Aug. 8

For the fifth year in a row, Tennessee’s will exempt clothing, footwear, and school supplies costing up to $100 per item and computers costing up to $1,500 from all state and local sales taxes.

 

Texas: Aug. 20 to Aug. 22

All state and local sales tax on clothing, footwear, and school supplies costing up to $100 per item are waived on the third weekend in August.

 

Virginia: Aug. 6 to Aug. 8

Clothing and footwear costing $100 or less per item and school supplies costing $20 or less per item will be exempt from Virginia’s 5% state sales tax.

 

West Virginia: Sept. 1 to Nov. 30

For the third year in a row (and final year of the program), West Virginians will enjoy a three-month long sales tax holiday that exempts the purchase of Energy Star products costing up to $5,000 each from West Virginia’s 6% sales tax.

{ 1 comment… read it below or add one }

Sales Tax Exemption September 27, 2010 at 1:30 am

Thats good, your blog is cool, i like it. Thanks for the efforts my friend.

Leave a Comment

{ 1 trackback }

Previous post:

Next post: