Sales tax holidays can save you money on back-to-school shopping -- or on new clothes or a laptop for yourself
Published in Lifestyles
Summer is winding down, and it’s almost time for back-to-school shopping. If your state offers a sales tax holiday — fewer than 20 states do this year — you might be able to give your wallet a bit of a break.
And that’s true whether or not you have children: These sales-tax holidays can be a good time to buy new clothes, a computer or other items.
Sales tax holidays: How they work
Many states offer their sales tax holidays in August. Most states limit the types of items that are eligible for the sales tax holiday — clothing is the most common qualified purchase — and they usually put a dollar limit on how much of the purchase will be tax-free.
But many states let you buy multiple items tax-free, as long as each of those purchases is below the state’s limit. For example, a common dollar limit is $100 for tax-free purchases. Many states will let you purchase, say, two coats — each of which costs $80 — and still enjoy a completely tax-free purchase even though the total is $160. Often, online purchases are included in the sales-tax holiday.
Still, the rules for sales tax holidays vary widely. For example, Massachusetts’ tax-free holiday has few limitations, letting you buy a broad variety of personal items tax-free, as long as each item costs $2,500 or less. South Carolina places no dollar limit on a variety of purchases. Virginia imposes different dollar limits depending on the type of item — but goes beyond back-to-school products to include disaster-preparedness purchases, such as portable generators.
Be sure to check the tax department website of your state to confirm the details. That way, you can know what to expect and maximize your savings when it’s time to shop.
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