Allison Martin, Bankrate.com
Summer is getting caught up in me, and most of the time I go back to school to shop. If the state offers sales tax holidays (more than 20 states this year), you may be able to give your wallet a little break.
And that’s true whether you have children or not: these sales tax holidays can be a good time to buy new clothes, computers, or other items.
Sales Tax Vacation: How it works
Many states offer sales tax holidays in August. Most states limit the types of items eligible for sales tax holidays – clothing is the most common and qualifying purchases – they usually place dollar limits on how much of the purchase is tax-free.
However, many states exempt multiple items tax-exempt as long as each of those purchases is below the state limit. For example, the typical dollar limit is $100 for tax-free purchases. Many states can purchase, for example, two courts (each costing $80), but you can enjoy a completely tax-free purchase, despite the total being $160. In many cases, online purchases are included on sales tax holidays.
Still, sales tax leave rules are very different. For example, there are few restrictions on tax-free holidays in Massachusetts. As long as each item is under $2,500, it will tax-free on a wide range of personal items. South Carolina does not impose dollar restrictions on various purchases. Virginia imposes different dollar limits depending on the type of item, but beyond backtool products, it includes disaster preparedness purchases such as portable generators.
To find out more, be sure to check the Ministry of Tax website website. This way you will know what to expect when it’s time to shop and maximize your savings.
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