ByKELLI B. GRANT
READY FOR BACK-TO-SCHOOL SHOPPING?
You can cut your bill by up to 12% by taking advantage of state sales tax holidays. This year, 13 states (plus the District of Columbia) have announced such holidays for late July and August, eliminating the sales tax on clothing, school supplies and computers.
Here's how to get a good deal:
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Consider local sales tax.
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Watch out for loopholes.
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Check your receipt.
|
State Sales Tax Holidays | |||
|
Dates |
State |
Tax Savings |
Items* |
| July 22-30 | Florida | 6% to 7% |
$50 or less: Books, clothing, shoes and accessories.$10 or less: School supplies. |
| Aug. 3-6 | Georgia | 4% to 7% |
$1,500 or less: A single purchase consisting of computers, computer accessories and/or energy-efficient products.$100 or less: Clothing and shoes.$20 or less: School supplies. |
| Aug. 4-5 | Iowa | 5% to 7% |
$100 or less: Clothing and shoes. |
| Aug. 4-6 | Alabama | 4% to 9% |
$750 or less: A single purchase consisting of computers, software and/or computer supplies.$100 or less: Clothing.$50 or less: School supplies and instructional materials.$30 or less: Books. |
| Missouri | 4.2% to 8% |
$3,500 or less : Computers and computer accessories.$350 or less: Computer software.$100 or less: Clothing and shoes.$50 or less: School supplies. | |
| New Mexico | 5% to 7.6% |
$1,000 or less: Computers.$500 or less: Computer accessories.$100 or less: Clothing and shoes (but not athletic or protective clothing), book bags, backpacks, calculators, maps and globes.$15 or less: Notebooks, paper, writing instruments, crayons, art supplies, paper clips, staples, staplers, scissors and rulers. | |
| North Carolina | 4.5% to 7.1% |
$3,500 or less: Computers$250 or less: Computer accessories.$100 or less: Clothing (but not accessories or athletic clothing) and school supplies.$50 or less: Sports and recreational equipment. | |
| South Carolina | 5% to 7% |
Any price: Clothing, shoes, accessories (but not jewelry), school supplies, computers, printers, printer supplies, computer software and bed and bath linens. | |
| Tennessee | 7% to 11.8% |
$1,500 or less: Computers.$100 or less: Clothing and school supplies. | |
| Texas | 6.3% to 8.3% |
$100 or less: Clothing and shoes (but not athletic or protective clothing and accessories). | |
| Virginia | 4% to 5% |
$100 or less: Clothing and shoes.$20 or less: School supplies. | |
| Aug. 5-13 | District of Columbia | 5.75% |
$100 or less: School supplies, clothing, accessories and shoes. |
| Aug. 12-13 | Massachusetts | 5% | Proposed holiday. (Measure had not yet been enacted as of publication date.) During the 2005 holiday, most items costing $2,500 or less were tax-free. |
| Aug. 20-26 | Connecticut | 6% |
$300 or less: Clothing and shoes (but not athletic or protective clothing, jewelry and other accessories). |
| Aug. 23-27 | Maryland | 5% |
$100 or less: Clothing and shoes (but not accessories). |
* Cost per item unless otherwise noted.
Tax-Free Every Day
A sales-tax holiday is great, but there's plenty you can do to circumvent the sales tax on a regular basis.
States that don't charge sales tax: Alaska (up to 1.15% in local sales tax), Delaware, Montana, New Hampshire and Oregon.
State exemptions: Depending on where you live, you may regularly be exempt from paying tax on certain items. Many states, including Minnesota, skip the sales tax on food, prescription drugs and nonprescription drugs. Minnesota, for example, exempts all three. New York doesn't charge sales tax on clothing and shoes that run $110 or less per item. And Connecticut regularly exempts clothing and shoes that cost $50 or less. Click here for a full list.
Buy online. Not every retailer charges sales tax. For more, see our column Skipping the Sales Tax.
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