This weekend is Massachusetts’ annual sales tax-free day. On August 10 and 11, most in-person purchases are tax-free, including online purchases.
But like any other offer, there are a few restrictions and exclusions you should be aware of before filling your cart.
Here are some things you should know about Massachusetts tax-free weekend:
Not all items are allowed.
There are some retail items that are not included in the tax-free weekend. You can see the full list
Herebut most importantly, motor vehicles, gasoline, alcohol, marijuana and tobacco products. In addition, ready meals are not available tax-free.
There is a financial limit to what is considered tax-free.
Any single item over $2,500 is subject to full tax.
Mark Vautour, a manager at Landry’s Bicycles, said they train their staff to handle questions and make sure they inform customers of the rules.
“If someone comes in and wants to buy a $6,500 bike, that’s not a tax-free purchase,” Vautour said. “For us, it’s mostly about training employees to make sure we do it right.”
Eligibility is based on the sale price, not the list price, meaning if a coupon reduces the price of an item to less than $2,500, it won’t be taxed, even if the list price is above that limit.
A special rule applies to clothing, one of the most popular items purchased during tax-free holidays. Instead of the $2,500 limit for most purchases, clothing over $175 is taxed on the amount above that amount. For example, if you buy a dress for $200, only $25 of that purchase price is taxed.
The VAT exemption only applies to personal purchases.
Purchases you make as a business or corporation are still subject to tax, as are purchases made by an individual for business purposes.
You have to go shopping this weekend.
Purchases must be made before the end of the weekend (Eastern Daylight Time). Even if the item is not delivered before the end of the weekend, the purchase will remain tax-free.
Some companies advertise that you can make a purchase before the sales tax day, cancel it, and order again to avoid the tax. According to the Massachusetts Department of Revenue, this is not possible if you made a deposit, paid for the item in advance, or in any way agreed to pay for the item before August 10.
Rebeca Pereira contributed to reporting.
