It goes without saying that when buying clothing or school supplies, at the end you get to pay sales taxes.
Enter Tax Holidays. This means that once a year you actually don’t have to pay sales tax when purchasing certain items. This event lasts a few lucky days in the month before school starts again so that parents can get tax-free back to school supplies and clothes for their children without paying sales tax. Some states extend this to the appliances, windows, computers, energy-efficient products, etc.
For example, Tax Holidays in Iowa last two days, first Friday and Saturday of August, namely August 5 and 6. You can buy clothing or footwear priced under $100 for each item. Yes, you heard me right. You can buy an unlimited amount of clothing tax-free providing that each one is priced at $100 or less, regardless of how many items are sold on the same invoice to a customer. The “clothing” is defined as “apparel and typical footwear intended to be worn on or about the human body”. More details here.
What a great time to stock up on clothing sales-tax-free!
The state of Georgia runs their Tax Holiday on the energy or water efficient products, including air conditioners, clothes washers, dishwashers, refrigerators, windows etc. with a purchase price of up to $1,500 per item. This lasts between September 30 through October 2, 2016. As well as clothing up to $100 per item, July 30 – 31. Don’t you just love Georgia? I bet the sales of appliances are booming in these three days.
Missouri will let you buy a computer up to $1,500 tax-free. Georgia runs close behind, does same for $1,000. Louisiana offers tax rate reduction for buying firearms, ammo & hunting supplies.
Check out the 2016 State Sales Tax Holidays to see if your state is on the list.