It should be a big weekend for television and appliance sales in Massachusetts — the annual sales tax holiday starts on Saturday.
This weekend, shoppers can buy most retail items without paying 6.25 percent in sales taxes, as long as those items cost less than $2,500 each. That means consumers could save as much as $156 per item if they buy on Saturday or Sunday.
Consumers can purchase as many of those products as they want, sales tax-free, even if the total bill exceeds $2,500, according to the Massachusetts Department of Revenue. Certain items are not eligible for the tax exemption, including meals, cars, boats, and utilities. Tobacco and marijuana products, as well as alcoholic beverages, are also excluded.
Shoppers can get a sales tax break on online purchases too, as long as they buy from a business that normally sells in Massachusetts and is subject to the sales tax.
The tax holiday only applies to shoppers buying items for personal use, so companies or individuals buying items for business use will still need to pay a sales tax.
Governor Charlie Baker established the sales tax holiday in 2018 as an annual event that would take place over one weekend. It’s intended to encourage people to shop, therefore boosting local businesses.
In June, Baker received pushback from legislators for proposing that the state use its budget surplus to fund a two-month break on sales taxes.