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

By ETHAN LEAVITT (Patch Staff)

Massachusetts will once again slash the taxes from shoppers’ purchases during a tax-free weekend, which is taking place this weekend from Aug. 15-16.

Now you can’t go too crazy. Not everything you want to buy is tax-free. So before you plan out how you’re going to take advantage of that 6.25 percent discount, take a look at the rules of the weekend; mainly, what is tax free and what is not.

• All items that cost $2,500 or more are still taxable this weekend.

• Motor vehicles are taxable this weekend, as are motorboats, meals, telecommunications services, gas, steam, electricity and tobacco products.

• 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.

• 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).”

• 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.