You know how the old saying goes, “nothing is certain in life but death and taxes?” As it turns out, that’s not always the case.
If you’re a consumer living in one of 15 US states (give or take) that intends to hold a sales tax holiday in 2020, you may be off the hook for paying sales tax on specific items, within specific time frames.
Where and When Will Sales Tax Holidays Be Held?
To be clear, sales tax holidays aren’t set in stone. In 2010, for example, 19 states held sales tax holidays, but only 16 states held events in 2019, according to the Tax Foundation.
So although the data below is current as of this writing, per the Sales Tax Institute, it’s always subject to change.
To make things even more complicated, sales tax holidays only apply to specific items. For instance, Back to School holidays typically offer tax relief on items like school supplies, clothing, and shoes (up to a specific dollar amount), while Energy Star holidays typically cover energy-saving home improvements.
If you’re a consumer in one of the states listed above, buying during a sales tax holiday can help you save money on items you were already planning to purchase. But if you’re a merchant, staying compliant with tax requirements can get complicated.
Note: At Quaderno we love providing helpful information and best practices about taxes, but we are not certified tax advisors. For further help, or if you are ever in doubt, please consult a professional tax advisor or the Tax Agency.