What purchases are tax free?

Asked by: Christine Hills IV  |  Last update: June 13, 2026
Score: 4.8/5 (35 votes)

In Texas, tax-free purchases typically include most clothing, footwear, school supplies, and backpacks priced under $100 during the annual August sales tax holiday. Other tax-exempt items include non-prepared grocery foods, prescription medicine, and specifically designated emergency preparation supplies (e.g., flashlights, batteries under $75).

What items are considered tax-free?

Some items are exempt from sales and use tax, including:

  • Sales of certain food products for human consumption.
  • Sales to the U.S. Government.
  • Sales of prescription medicine and certain medical devices.
  • Sales of items paid for with EBT cards.

What to buy during tax-free?

Often, the focus is on back-to-school items like clothing, shoes, computers, and school supplies. Eligible products often have price caps—for instance, some states limit the price of clothing or footwear to $100 or less.

Which items are exempt from tax?

Goods and services exempted from VAT are:

  • Non-fee related financial services.
  • Educational services provided by an approved educational institution.
  • Residential rental accommodation, and.
  • Public road and rail transport.

What does Delaware not tax?

Social Security and Railroad Retirement benefits are not taxable in Delaware and should not be included in taxable income. Also, Delaware has a graduated tax rate ranging from 2.2% to 5.55% for income under $60,000, and 6.60% for income of $60,000 or over.

Tax Free Shopping

35 related questions found

Is iPhone tax free in Delaware?

The atmosphere buzzes with excitement as customers explore everything from iPhones to MacBooks. But beyond the allure of shiny devices lies an undeniable advantage: no sales tax on purchases. Delaware has long been known as one of the few states in America without a sales tax.

What state has 0% sales tax?

Five U.S. states have no statewide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon, often called the "NOMAD" states. However, this doesn't always mean zero tax on purchases, as Alaska allows local jurisdictions to impose their own sales taxes, and New Hampshire taxes prepared food/meals, while Montana has a lodging tax.

Does Walmart do tax exempt purchases?

Yes, if you want to make tax-exempt purchases online, you currently need to apply through the online application that is best for you or your organization. If you're an individual with tax-exemption, you will need to sign up at Walmart.com/TaxExempt after logging into your account.

How to buy things tax exempt?

A sales tax exemption certificate is a document that allows a business, organization, or individual to purchase normally taxable goods or services tax free. Purchasers apply for exemption certificates and provide them to sellers at checkout.

What things don't pay taxes?

Here are eight types of income that are free from federal taxes.

  • Child support. ...
  • Disaster relief assistance. ...
  • Financial gifts. ...
  • Inheritance. ...
  • Interest on municipal bonds. ...
  • Life insurance death benefits. ...
  • Profit on your home sale. ...
  • Roth IRA income.

Which state is cheaper to buy an iPhone?

Delaware has no sales tax, which makes buying an iPhone in the nation's first state cheaper than it is in others.

What states have tax-free shopping?

Five states have no statewide sales tax: New Hampshire, Oregon, Montana, Alaska, and Delaware. These are sometimes called the NOMAD states. Businesses based in NOMAD states can establish nexus and an obligation to collect sales tax in other states.

Can I buy a car in Delaware to avoid sales tax?

Yes, you can buy a car in Delaware to avoid state sales tax, as Delaware has no state sales tax on vehicle purchases, a major draw for out-of-state buyers from nearby states like NJ, MD, and PA. However, you'll still pay a one-time Document Fee (a transfer tax) in Delaware, usually 4.25% of the purchase price or NADA value, plus your home state's registration/titling fees and any potential personal property taxes when you register it there. 

What items are tax free in Delaware?

Goods: Tangible personal property sold in Delaware is generally exempt from sales tax. So, physical products like clothing, furniture, or electronics wouldn't incur sales tax. Software as a Service (SaaS): Delaware doesn't have a specific tax on SaaS.

How much is $70,000 after taxes in Delaware?

What is the average salary in United States of America? If you make $70,000 a year living in the region of Delaware, United States of America, you will be taxed $16,912. That means that your net pay will be $53,088 per year, or $4,424 per month.

Is Delaware a tax haven?

Delaware is considered a tax haven within the United States due to its business-friendly laws and tax structure. The state offers several advantages to corporations, including no state corporate income tax on goods and services provided by Delaware companies operating outside the state.

What is a tax-free item?

Tax Free is a consumption tax exemption system that applies to general stores in cities, such as department stores and shopping malls. On the other hand, Duty Free is specific to Duty Free shops located in restricted airport areas. This system exempts goods from customs duties, tobacco tax, and liquor tax, etc.

What are zero-rated items?

Goods that are typically zero-rated include basic foodstuffs, prescription medicines, books and educational materials, public transportation, and exports.