Items exempt from sales tax generally include necessities to reduce the burden on consumers, such as groceries (unprepared food), prescription medicines, medical devices, and often clothing. Other common exemptions include residential utilities, certain services, and items purchased by charitable, religious, or government organizations.
Some items are exempt from sales and use tax, including:
Inheritances, gifts, cash rebates, alimony payments (for divorce decrees finalized after 2018), child support payments, most healthcare benefits, welfare payments, and money that is reimbursed from qualifying adoptions are deemed nontaxable by the IRS.
Here are eight types of income that are free from federal taxes.
Arkansas's 2025 Sales Tax Holiday was August 2-3, covering clothing/footwear under $100, accessories/equipment under $50, school supplies/art supplies/instructional materials, and student-use electronics, with specific price caps like $1500 for computers/peripherals and $150 for graphing calculators, but excluding items like sewing supplies or protective gear.
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.
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.
There are only minimal items which are not reportable for GST purposes. These include bank transfers between accounts, stamp duty, depreciation and salary/wages. These are purchases/sales that have a 0% GST rate.
Who Does Not Have to Pay Taxes? You generally don't have to pay taxes if your income is less than the standard deduction or the total of your itemized deductions, if you have a certain number of dependents, if you work abroad and are below the required thresholds, or if you're a qualifying non-profit organization.
Key items exempted from GST:
Your card should work, and grant you tax exempt status, at any Sam's Club location within the US. You may use Self-Checkout or Cashier lanes for checkout. Your card must be swiped before transactions. **IMPORTANT: You must select tax exempt when prompted.
Back-to-School clothing, clothing accessories, footwear; school supplies; computers, printers and printer supplies, and computer software. Ceiling fans. Incandescent and fluorescent light bulbs.
Arkansas's tax-free items are primarily for its annual Sales Tax Holiday (first weekend of August), exempting clothing (under $100/item), accessories (under $50/item), school supplies, art supplies, instructional materials, and student electronics (like laptops, tablets, cell phones, with no price cap) from state and local sales tax, allowing significant savings for back-to-school shopping, with online purchases also included if shipped during the period.
Tips for Amazon Tax-Free Shopping
Complete the purchase during Tax-Free Week: Timing matters—only orders finalized within the tax-free window are eligible. Watch pricing per item: Even if your total cart is under $100, each item must individually be priced at $100 or less.
No Tax on Overtime is a provision that was included in a larger tax reform bill that passed in July 2025. It allows certain workers to deduct up to $12,500 in qualified overtime compensation from their taxable income on their federal income tax return. Joint filers can deduct up to $25,000.