What Can You Buy Tax-Free Aug. 15-16 in Massachusetts?

Massachusetts will once again slash the taxes from shoppers’ purchases during a tax-free weekend, this year scheduled for Aug. 15-16.

Before you start planning all they ways you’re going to take advantage of that 6.25 percent discount, take a look at the rules of the weekend; namely, what is exempt from the tax-free holiday.

• Hold off on buying that new sports car. Motor vehicles are taxable this weekend, as are motorboats, meals, telecommunications services, gas, steam, electricity and tobacco products.
• Dreaming about that enormous television ahead of football season? Check the price tag -- items that cost more than $2,500 remain taxable this weekend. And that’s the full amount that’s taxable, not just the amount over $2,500.
• That $2,500 threshold could put a damper on your designer clothing shopping, too. In Massachusetts, clothing purchases up to $175 are always tax exempt. During tax-free weekend, clothing up to $2,500 will be tax-exempt. (It might be a great weekend to bargain hunt for a wedding dress). Keep in mind, however, that you will be taxed on the item, minus $175, if the price tag is greater than $2,500. Confused? Here’s an example from Mass.gov: “A customer buys a wedding dress on the sales tax holiday for $2,550. Tax is due on $2,375 ($2,550 - $175).”
• Trying to get under that $2,500 cap? Look for a store coupon. If you can find a coupon that reduces the cost of an item to less than $2,500, it’s eligible for tax-free status. For example, have your eye on a $3,000 sofa and have a 20 percent off coupon? Congratulations, your sofa is tax-free at $2,400.
• Remember, Internet purchases are eligible for tax-free status as long as they meet the other requirements listed above. So don’t limit yourself to just what you can find in stores.
• Layaway sales are taxable this weekend.

Looking for even more details? Check out the legal spiel on Mass.gov.