What You Need to Know about Massachusetts' Tax Free Holiday Weekend

Massachusetts’ tax free holiday weekend kicks off Saturday, Aug. 15. To help you make the most of the two days of shopping, Tewksbury Patch has pulled together everything you need to know to make the most of your shopping experience.

Here’s a look at everything you need to know from what you can buy tax free this weekend, to shopping strategies:

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

Planning to go on a shopping spree during the upcoming tax-free weekend? Here are the rules you need to know before you go:

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.

Best Tax-Free Holiday Weekend Shopping Strategies

Here are seven savvy shopping strategies for the tax-free weekend, plus the Top 10 Trends for Back-to-School:

Consumers still prefer physical stores for Back to School shopping, according to the International Council of Shopping Centers, with 83 percent of their purchases involving physical stores. Of those who will order online and pick-up in-store, 79 percent said they are likely to buy additional items once in the store.

According to National Retail Federation’s Back-to-School Spending Survey conducted by Prosper Insights & Analytics, the average family with children in grades K-12 plans to spend $630.36 on electronics, apparel and other school needs, down from $669.28 last year.

As with any tax-free holiday, there are all kinds of approaches to shopping.

This will be the 11th tax-free weekend in the state and savvy shoppers have developed strategies:

• Shop with a list.

• Research deals, promotions and sales before stepping into the stores. Read the fine print in ads.

• Avoid the crowds - shop a few days before the weekend, and choose your purchases. Some stores will write up the sale and not ring it in until the weekend.

• Find and organize coupons. Consider signing up for your favorite store’s loyalty programs to learn of bargains through emails.

• Set a budget - don’t buy just because it’s on sale.

• Use shopping apps to help find the best deals.

• Check the store’s return policy, especially before purchasing a big-ticket item. Some stores offer a full refund, but have a “restocking” fee. A number of companies charge “restocking fees” that that are often about 15 percent to 20 percent but can go much higher, according to Consumer Reports.