America is going through a period where the costs of consumer goods are rocketing. As the rising prices are scattering in all sectors, not just the minority, shopping becomes more daunting.
That’s why consumers deem the sales tax holidays a reliever and wait until then to make purchases, sometimes for the whole latter part of the year.
But simply shopping during tax free weeks doesn’t save you as much as you think. There are other tricks you need to know to actually save a chunk of money.
In this article, we’re going to reveal 9 tips on how to save money on tax free holidays. Applying them will earn you a beneficial shopping season for sure!
What Are Tax Free Holidays?
During tax free holidays, which can sometimes extend to a full week in certain cases, participating states reduce sales tax on specific items, making shopping more budget-friendly.
When you shop at a retailer in a state during its tax-free holiday, you won’t have to pay any sales tax, and no paperwork or coupon is required.
The state sales tax will simply be waived at checkout if you make a purchase eligible for tax-free status during your state’s designated period.
Although all states offering tax-free weekends have some restrictions on tax-exempt items, it’s a great opportunity to save on essential back-to-school supplies.
National retailers like Walmart, Amazon, and Target are also required to participate in tax-free weekends in the states where they do business.
However, keep in mind that some municipalities may still apply their local taxes during these tax-free weekends. Currently, 18 states are participating, including Alabama, West Virginia, New Jersey, Texas, Ohio, and more.
9 Tips For Saving Money On Tax Free Holidays
If you’re starting to sweat it (and it’s not the summer heat), don’t fret your finances. Here’s where back-to-school tax-free weekends and tips from Spruce can help you with real savings!
Stay Tuned On What Is Exempt In Your State
It’s critical to know what and where to buy during tax-free weekends 2023.
Each state sets its specific criteria for the items included in their tax free holidays. Generally, school supplies, clothing, and footwear are commonly exempted, but some states go beyond these essentials and include electronics or appliances.
The scope of eligible items can also vary annually, with certain states adding unique exemptions. For instance, Texas incorporated water conservation products in 2019, while Mississippi exempted hunting supplies during the same year.
Moreover, each state decides the dollar amount under which items become eligible for tax exemption.
For instance, Texas’s back-to-school tax-exempt weekend only applies to school supplies, clothing, footwear, and bookbags under $100.
Additionally, most states impose limits on the total amount of tax-free purchases allowed.
For example, Tennessee forgives the full 7 percent state sales tax on computers up to $1,500, while South Carolina doesn’t have a dollar limit for eligible purchases and even exempts add-ons such as clothing alterations and delivery charges.
Compile A Shopping List Beforehand
Drawing up a to-buy list before the sales tax holiday is a smart trick that comes with several advantages. Firstly, it helps you stay organized and focused on what you truly need, preventing impulsive purchases that can lead to overspending.
In some states like Florida, the back to school shopping season meets the zero-tax week 2023. Take advantage of it! We’ve got a list of the best school supplies sales this back to school in case you’re still wondering what to add to your cart
By creating a list, you can carefully plan which items to buy during the tax-free weekend, ensuring you take full advantage of the available exemptions.
Additionally, having a shopping list in hand allows you to compare prices, quality, and availability of items across different retailers, maximizing your chances of getting the best deals.
Since the tax-free holiday has specific criteria for eligible items, a pre-made list helps you identify which products qualify for tax exemption, reducing any confusion during your shopping trip.
Prioritize What You “Need” Over What You “Want”
Don’t let the lower prices fool you into overspending. Needs address your functional requirements and day-to-day necessities.
Ensuring you have the essentials first allows you to meet practical needs and maintain a balanced lifestyle.
Also, identifying needs helps you avoid impulse buying or splurging on items that might not be essential.
It prevents you from falling into the trap of buying things simply because they are on sale or seem appealing at the moment.
Buy In Bulk
A money-saving tactic that proves incredibly beneficial for saving consumers is buying in bulk. This entails visiting online retailers, like Costco, Staples, or online retailers to purchase larger quantities of products at a lower per-unit price.
For instance, on Amazon, you can find a box of 300 pencils priced at $29.99, significantly reducing the cost per pencil compared to smaller packages.
To avoid unnecessary excess, consider teaming up with neighbors or friends to split the bulk order, allowing everyone to benefit from the lower prices without acquiring more supplies than needed.
Use Coupons
Don’t indulge so deeply in the excitement of paying sales tax during the state sales tax holiday that you overlook the benefits of using coupons and promo codes.
In certain states with a tax-free threshold, these discounts can bring the item’s price down to tax-free levels.
Combining a coupon with the tax-free advantage allows you to maximize your tax free holiday online shopping savings. If you’re looking for the best back-to-school sales, JCPenney had the most affordable school supplies in 2022.
For added convenience, consider installing Tenere browser extension, which automatically locates and applies online promo codes on your behalf. It makes your shopping experience even more rewarding.
Consider Cash Back Shopping
Why not earn cash back that you can use anytime? If you have a mix of sales items on your shopping list, a flat-rate cash back app or card might be your ideal choice.
Consider excellent options like the Wells Fargo Active Cash® Card, PayPal Cash Back Mastercard®, or Citi® Double Cash Card to make the most of your cash back rewards.
These cards can enhance your savings and provide you with valuable cash back on your everyday purchases, making your shopping experience even more rewarding.
Be Mindful Of The Shipping Costs
Shipping costs can add complexity to the tax-free shopping experience. In certain states, shipping fees are not considered when calculating an item’s cost, so you don’t need to be concerned about exceeding the tax-free threshold due to shipping charges.
However, in other states, shipping costs can affect an item’s tax-free status, requiring careful consideration.
Additionally, if your online shopping cart contains both eligible and ineligible items, certain states’ laws mandate that the retailer distributes the shipping costs among all items, leading to confusion.
To navigate these intricacies, it’s essential to understand your state’s policy before making purchases.
Compare Prices
When the duty-free season arrives, you’ll likely receive a flurry of advertisements in your mailbox. Take a few moments to review these ads and see what items are being sold and at what prices.
It’s also essential to compare the sales prices online to ensure you get the best deals.
Once you’ve done your research, identify one or two stores that offer the most significant savings for the items on your shopping list.
The goal of comparison shopping is to find a balance between overall savings and convenience, so avoid driving all over town for individual items, as this could potentially negate your savings with increased gas expenses.
Start Early
As a savvy shopper in your state, you’re well aware of the upcoming tax-free weekend.
To make the most of this opportunity, consider starting your shopping early to have a wide selection of items to choose from.
Keep in mind that most states do not provide tax-free rainchecks, so if a desired item sells out during the tax-free weekend, you might miss out on the tax savings.
Act promptly to secure the items you need before they run out, ensuring you can take full advantage of the tax-free weekend and enjoy substantial savings.
Takeaways
Needless to say, tax-free weekends are a much-anticipated occasion that rarely does a passionate family buyer take no action.
Still, when figuring out how to save money on tax free holidays, weigh up how you set aside throughout the whole year as well. Just because your desired items are on sale at the sales tax weekend doesn’t necessarily mean that’s the best price. Don’t use up your budget!
So, are you ready to fix your family up with all the essential things?
