Some states offer tax free weekends where you can make purchases without having to pay sales tax. Each state and city has different rates of sales tax, and in some cases it can add quite a bit to your final bill. The Federal Tax Administrators have published a listing of the various state wide 2012 tax-free weekends in various states. Some states have a maximum cost of items and categories of items that can be purchased to receive the tax break.
Back to school savings
One time of the year that some states offer a tax-free weekend is in August which may be the perfect time to purchase your back to school items and be able to save some money on them. By saving money on sales tax you may be able to purchase some items that you usually could not afford or buying higher quality items. Higher quality items may cost more but may save you money over time. If you spend more for higher quality items they may last longer than buyer lower quality items. If you end up buying items over and over because they wear out it will most likely cost you more than if you would have spent the extra money in the beginning.
Saving the amount of the tax may not seem like a big deal on smaller items but the savings can add up quickly and can make a big difference on bigger ticket items such as computers, electronics and furniture.
The tax-free weekend can be a good deal but as with purchasing anything consider if you really to buy the items. You are not saving money if you are just buying something because you are getting a deal on it. One of the reasons retailers offer these tax breaks is to lure you into the stores and hope that you purchase more than you normally would.
Even if you don’t have kids in school you may be able to purchase items you do need at these times to save some money on these items. It may be a good chance to purchase items for holiday gifts and save the money you would normally pay for sales taxes.
Energy savings items
Some states offer tax-free periods throughout the year if you purchase Energy Star products, and also items for hurricane preparedness. When you purchase Energy Star items you will also save money on utility costs along with the savings in sales tax.
If you are planning on making purchases, check to see if and when your state offers tax-free weekends to save yourself money.