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Free sales tax days and weekends are becoming more and more popular. So far 20 states participate in some form of tax holiday. More are talking about adding it. These tax free days not only save people money, they generate revenue for local businesses, which helps stimulate the economy. If you treat this as something that requires a strategy you can stand to save hundreds of dollars by taking advantage of these days.
School Supplies
Most of the states that offer a tax free holiday will do this before school starts. This is done as a way to generate not only income for the retailers, but a way to save parents money on getting back to school supplies. This is one of the biggest yearly expenses people face when it comes to their children. Clothing, shoes, supplies, backpacks, and even linens and computers can qualify for the free sales tax day. If you wait to purchase all your children’s new clothing and supplies during this time you will enjoy a decent amount of money saved with the sales tax exempt items.
Crossing State Borders
If you have large purchases to make, like computers or in some cases other appliances, you may want to consider driving in to another state if your state doesn’t offer a tax free day. In most cases the tax free days cover things that are related to school supplies, but some states like North Carolina do a separate tax free day later in the year for purchases of Energy Star appliances. Someone living in Virginia can save quite a bit if they are willing to spend some extra gas money to drive across the border to get their new washer and dryer during the Energy Star tax exemption. Check in to the exclusions and restrictions. If you can save more than you spend in gas, then make a run for the border!
Stock Up
If you know your family goes through socks like crazy, then take advantage of the tax free day to stock up. It’s not really worth the time or headache of dealing with crowds to save a few cents on just a few items. Sit down in advance of the sales tax exempt days and make a list of all the things you need and can feasibly stock up on. Do a rough estimate in your head of how much that will cost, and then subtract the sales tax revenue from that number. If it’s a decent amount, then go for it. If you will only save five or six bucks, then just wait.
Taking advantage of sales tax exempt days or weekends can save the average family as much as $100, if not more. This is $100 that can be put towards something else down the line. It’s definitely worth it to plan and shop smartly during this time.
School Supplies
Most of the states that offer a tax free holiday will do this before school starts. This is done as a way to generate not only income for the retailers, but a way to save parents money on getting back to school supplies. This is one of the biggest yearly expenses people face when it comes to their children. Clothing, shoes, supplies, backpacks, and even linens and computers can qualify for the free sales tax day. If you wait to purchase all your children’s new clothing and supplies during this time you will enjoy a decent amount of money saved with the sales tax exempt items.
Crossing State Borders
If you have large purchases to make, like computers or in some cases other appliances, you may want to consider driving in to another state if your state doesn’t offer a tax free day. In most cases the tax free days cover things that are related to school supplies, but some states like North Carolina do a separate tax free day later in the year for purchases of Energy Star appliances. Someone living in Virginia can save quite a bit if they are willing to spend some extra gas money to drive across the border to get their new washer and dryer during the Energy Star tax exemption. Check in to the exclusions and restrictions. If you can save more than you spend in gas, then make a run for the border!
Stock Up
If you know your family goes through socks like crazy, then take advantage of the tax free day to stock up. It’s not really worth the time or headache of dealing with crowds to save a few cents on just a few items. Sit down in advance of the sales tax exempt days and make a list of all the things you need and can feasibly stock up on. Do a rough estimate in your head of how much that will cost, and then subtract the sales tax revenue from that number. If it’s a decent amount, then go for it. If you will only save five or six bucks, then just wait.
Taking advantage of sales tax exempt days or weekends can save the average family as much as $100, if not more. This is $100 that can be put towards something else down the line. It’s definitely worth it to plan and shop smartly during this time.
