Tax-Free Holiday This Weekend: Good Time to Buy Tech Equipment

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Tax-Free Holiday This Weekend: Good Time to Buy Tech Equipment
You don’t have to be going back to school to take advantage of the savings offered by many states’ tax-free holidays. Six states are waving taxes, not just on school supplies and clothing but for computer purchases as well--from August 5 to August 7. If you’ve been holding off on that new laptop, this weekend may be an ideal time to buy.

Taxes on expensive items like computers can be significant. In Tennessee, where sales tax rates are highest at 9.35%, you’ll have to pony up $140.25 for taxes on a $1,500 computer purchase--unless you buy the computer between now and August 7.

Here are the states and maximum cost (per item) for computer tax savings (source: Bargain Jack):

Alabama: Up to $750 per computer purchase. In addition to computer systems, this can also include software, printers, and other computer supplies, as long as they’re not typically used for recreation (e.g., that gaming wheel might not pass).

More info for Alabama

Missouri: Up to $3,500 per computer purchase--computer system or peripherals--and up to $350 for computer software.

More info for Missouri

New Mexico: Up to $1,000 per computer purchase and $500 for computer-related hardware.

More info for New Mexico

North Carolina: Up to $3,500 per computer purchase and computer supplies of $250 or less.

More info for North Carolina

South Carolina: Does not appear to have any maximum purchase amount limit. Taxes waved on computers, printers, and printer supplies, and computer software.

More info for South Carolina

Tennessee: Up to $1,500 on computers. Does not include software, storage media, printers or printer supplies, or computer peripherals if not sold as part of the system.

More info on Tennessee

Depending on the state, online merchants who are required to collect sales taxes for those states may also have to comply with the tax-free holiday and wave taxes for this period. So, whether you buy online or at the retail store, consider yourself lucky if you’re a resident of one of the states above. If your state is not on the list, you’re out of luck.

[List of all states that allow you to buy tax-free (not just tech equipment) and when they allow it.]

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