Massachusetts hosts a special tax-free holiday every year to enable citizens to save money on shopping. On August 14 and 15, this year, customers will be able to buy purchases without having to pay the state’s 6.25% sales tax. Anyone wishing to purchase expensive products like electronics, appliances, or furniture should take advantage of this chance.
It’s significant to remember that the things that qualify for the tax exemption are subject to some limitations. The following items are ineligible: meals, motor cars, marijuana, cigarette goods. Additionally, the exemption does not apply to any one item with a cost of more than $2,500. It’s wise to carefully confirm the eligibility of particular items with the various retailers.
Despite the fact that the tax-free holiday is undoubtedly a useful way to save money, Massachusetts has some of the highest property taxes in the nation. In reality, Massachusetts has the third-highest property tax rate in the country, behind only New Jersey and Illinois, according to a recent WalletHub research. As a result, even though you can save money on sales tax over the tax-free weekend, you might end up paying more in total for property taxes.
So, is residing in a state with no income tax preferable? The answer to this frequently asked question relies on a number of variables. Although not paying income tax may seem enticing, it’s crucial to take other taxes, such as sales tax and property tax, into account. Additionally, states without an income tax frequently need to increase taxes on other goods and services to make up for the lost revenue. In spite of this, a number of states will not impose a state income tax in 2021. Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming are a few of these. Although Tennessee and New Hampshire don’t have a state income tax, they do tax dividends and interest.
In conclusion, Massachusetts residents have a fantastic opportunity to save money on purchases over the tax-free holiday. When determining where to live, it’s crucial to take the state’s high property taxes and other levies into account. Furthermore, even if residing in a state with no income tax may sound enticing, it’s crucial to assess the benefits and drawbacks of each state’s tax system.