Skip to main content

Save on Sales Tax During Back-to-School Shopping

By U.S. News & World Report

American families are expected to spend $83.6 billion on back-to-school shopping in 2017, according to an annual survey from the National Retail Federation.

“Back-to-college spending is expected to hit an all-time high this year while back-to-school spending is expected to see its second-highest spending level on record,” according to the NRF.

[See: Avoid These Common Pitfalls During the Back-to-School Shopping Trip.]

With school supplies to purchase and dorms to furnish, many parents and students are eager to trim costs. Every year, budget-conscious shoppers take advantage of sales tax holidays — a once-per-year event in select states when customers can purchase eligible school essentials tax-free.

Unfortunately, with August well underway, many state sales tax holidays have come and gone. Alabama, Arkansas, Florida, Iowa, Louisiana, Mississippi, Missouri, New Mexico, Ohio, Oklahoma, South Carolina, Tennessee, Texas and Virginia ran their sales tax holidays earlier this summer. The year’s final two sales tax holidays are fast approaching, with Maryland’s tax holiday running from Aug. 13 to Aug. 19, and Connecticut’s tax holiday running from Aug. 20 to Aug. 26.

But there is hope for last-minute shoppers yet. There are several states that let consumers shop school essentials and other purchases, free of sales tax, all year long, and still others exempt certain items from sales tax year-round.

Here is the complete list of states where you can purchase school supplies with no (or very little) sales tax all year long.

[See: 12 Shopping Tricks to Keep You Under Budget.]

States with no sales tax year-round:

— Alaska. Note that while Alaska doesn’t impose a statewide sales tax, it does permit localities to enforce a local sales tax. Local sales taxes in Alaska range from 0 to 7 percent, putting the statewide average at around 1.75 percent. You may have to pay sales tax on back-to-school essentials in select cities in Alaska, including Juneau (5 percent sales tax), Homer (7.5 percent sales tax) and Nikiski (3 percent sales tax). You can, however, avoid paying sales tax in cities such as Anchorage and Fairbanks.

— Delaware. Delaware doesn’t impose a state or local sales tax, but it does impose a gross receipts tax on businesses, which takes a percentage of total receipts from goods and services sold. These rates range from 0.1006 percent to 0.7543 percent, depending on business activity. Though shoppers are not taxed directly, school supply, clothing and electronics prices in Delaware may be slightly higher because of the gross receipts tax on the stores selling these back-to-school buys.

— Montana. Montana doesn’t impose a statewide sales tax, instead relying largely on income taxes to fund local government operations. Montana also imposes taxes on select items, including tobacco and gasoline. Back-to-school essentials, such as school supplies, electronics and clothing, however, remain tax-free all year long.

— New Hampshire. Like Montana, New Hampshire doesn’t have a statewide sales tax, but does impose sales tax on select items. When shopping in New Hampshire, you may not have to pay a sales tax on school supplies, electronics and other back-to-school essentials.

— Oregon. Oregon also depends heavily on income tax, which typically falls in the top 10 percent of the country. In cities across Oregon, resident and visiting shoppers can stock up on everything from notebooks and pens to laptops and iPads, free of sales tax.

[See: 10 Money-Saving Websites to Check Before Shopping.]

States that exempt select items from sales tax year-round. Many states exempt food from sales taxes, while others exempt prescription and nonprescription drugs. These states fully or partially exempt certain types of clothing. All year long, you can shop for school uniforms, picture-day outfits and more without paying sales tax in these states:

— Massachusetts. Clothing is exempt up to $175. Certain clothing and footwear designed for athletic or protective use may be taxable.

— Minnesota. Clothing is exempt, but certain clothing and footwear designed for athletic or protective use and fur items are taxable.

— New Jersey. Clothing is exempt, but certain clothing and footwear designed for athletic or protective use and fur items are taxable.

— New York. Clothing is exempt up to $110.

— Pennsylvania. Clothing is exempt, but certain clothing designed for athletic use, formal clothing, accessories and fur clothing are taxable.

— Rhode Island. Clothing is exempt up to $250, but certain clothing and footwear designed for athletic or protective use and accessories are taxable.

— Vermont. Clothing is exempt, but certain clothing and footwear designed for athletic or protective use and accessories are taxable.

More from U.S. News

10 Ways to Shop Smarter at the Grocery Store

10 Things to Know Before You Shop for Back-to-School Supplies

Do’s and Don’ts of Shopping for Skin Care Products

Save on Sales Tax During Back-to-School Shopping originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
Read Next Story

Related News

Frustration grows in Venezuela as earthquake death toll reaches 1,430

Israel and Lebanon sign framework agreement with US in ‘first step’ toward peace, Rubio says

Trump-endorsed populist poised to become Colombia’s next president as rival challenges vote