Massachusetts Sales Tax HolidayAugust 11, 2014
Tax free weekend is approaching; Shoppers will get a break from the 6.25 % sales tax in Massachusetts.
Looking for back to school deals or other savings? Massachusetts lawmakers have settled on August 16-17th for the 2014 sales tax-free weekend.
What items are tax-free?
Virtually any non-business purchase in MA during the sales tax holiday weekend is tax-free. Specifically, any single item of $2,500 or less is tax exempt (excluding motor vehicles, motorboats, telecommunications services, restaurant meals, gas, and tobacco). The sales tax holiday is specifically for personal purposes, so purchases made with business checks or credit cards are not exempt from the sales tax.
The MA sales tax holiday also applies to Internet purchases, as long as the sale is completed and payment is made on August 16-17. The actual delivery of items purchased over the Internet may occur at a later date.
Fortunately, Massachusetts tax-free weekend applies to more than just clothing. For Connecticut's 2014 tax free week (August 17-23) only clothing and footwear are tax exempt. Each item purchased must be under $300, and the exemption does not apply to athletic uniforms or protective gear.
RI is also actively considering instituting two tax free holidays on President's day and the Saturday before Labor Day. Stay tuned for updates on these potential tax holidays.
How much will I save?
Let's say you are looking to purchase a new computer for $1,600. Without the usual 6.25% tax, you will save $100. Being that a new school year is fast approaching, it is smart to take advantage of these savings. Unlike CT, MA's tax free holiday spans only one weekend, so be sure not to miss it!
For more information, contact any member of our Tax Services Group.