Take Advantage of the Back-to-School Sales Tax Holiday

Most schools have already decided whether classes with be offered online, in-person or a hybrid of both. Covid-19 infection rates and other factors are significantly influencing these learning options. Despite the debate concerning students’ latest learning options, one thing seems certain – states are committed to providing back-to-school sales tax breaks for parents. What is especially helpful is the inclusion of technical learning equipment. In some jurisdictions you can get a sales tax break on items like computers and cellphones. If I were to use the State of Maryland as an example, the following should be noted.

When is the Tax Free Holiday?

The tax free holiday begins August 9th and extends through August 15, 2020

How Much Will I Be Saving?

If you take advantage of the tax holiday you will be saving 6% on back to school items purchased

Which Back to School Items Are Tax Free?

While the list is not exhaustive it includes items such as clothing and footwear costing $100.00 or less (per item); only up to the first $40.00 for backpacks and book bags; winter gloves and hats; baby clothes, disposable and cloth baby diapers to name a few of the items.

Can I Purchase an Item on Lay-Away?

If you purchase an item on lay-away after the tax free week, the sales tax will be applied to your items purchased.

Is the Sales Tax Holiday Applicable to Items Purchased Online?

Tax free shopping applies to items purchase online as long as you order and pay for the item during the sales tax free period which ends August 20, 2020.

Your assignment is to check with your state regarding any back to school sales tax holidays and the applicable items.

“Do not save what is left after spending, but spend what is left after saving.” – Warren Buffett

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