Thursday, October 28, 2010

5 Ways to Avoid Paying State Sales Tax

1.     Shop online-  When you purchase items from a company that is based in a different state than you, the business will not charge you their state sales tax.

2.     Go off the grid-  Shop auctions, flea markets, garage sales, and classifieds to avoid paying the tax. 

3.     Buy on vacation-  According to the Sales Tax Clearinghouse, the following states don't charge sales tax:  Alaska, Delaware, Montana, New Hampshire, and Oregon.  Make sure to pack light so you have room to bring back all your favorite souvenirs!

4.    Timely purchases-  Most states have promotional tax free weekends for "back to school" type shopping. 

5.    Stick to groceries-  When you eat out, you pay!  In most states, there is no sales tax on groceries.  Be careful because there is a fine line between groceries and convenience foods.  Convenience foods such as potato chips, soda, and other snacks may not have the same exemption.

Want to learn more?  Get The Ultimate Tax Reduction Guide


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