When it comes to buying a new mattress, most people focus on the price tag and the comfort level. However, one important factor that is often overlooked is sales tax. In the US, sales tax on mattresses can vary depending on the state and even the city you live in. Understanding how sales tax works on mattresses can help you make a more informed decision when making a purchase. According to the National Conference of State Legislatures, all but five states in the US have a statewide sales tax. This means that when you buy a mattress in these states, you will be charged a percentage of the purchase price in addition to the listed price. This is known as sales tax and it goes towards funding various state and local programs and services.Understanding Sales Tax on Mattresses in the US
The sales tax rate on mattresses can vary greatly from state to state. For example, some states have a flat sales tax rate while others have a variable rate based on the price of the mattress. To calculate the sales tax on a mattress, you will need to know the sales tax rate in your state and the price of the mattress. For example, if you live in a state with a flat sales tax rate of 6% and you purchase a mattress for $1000, you will pay an additional $60 in sales tax. However, if you live in a state with a variable sales tax rate of 8% and you purchase a mattress for $1000, you will pay $80 in sales tax.How to Calculate Sales Tax on Mattresses in the US
As mentioned earlier, sales tax on mattresses can vary greatly from state to state. Here is a breakdown of the sales tax rates for each state in the US:State-by-State Guide to Mattress Sales Tax
While most states charge sales tax on mattresses, there are some exemptions that can help you save money. For example, some states offer a sales tax holiday where certain items, including mattresses, are exempt from sales tax for a limited time. There are also exemptions for certain groups such as veterans, senior citizens, and individuals with disabilities. Another common exemption from mattress sales tax is for medical reasons. In some states, if you have a prescription from a doctor for a specific type of mattress to help with a medical condition, you may be exempt from paying sales tax on that mattress.Exemptions from Mattress Sales Tax in the US
In recent years, online mattress shopping has become increasingly popular. However, many people are confused about whether or not they need to pay sales tax when purchasing a mattress online. The answer is yes, you are still responsible for paying sales tax on online mattress purchases in most states. The Supreme Court ruling in 2018, South Dakota v. Wayfair, Inc., gave states the authority to require online retailers to collect and remit sales tax, even if they do not have a physical presence in the state. This means that if you live in a state with a sales tax and you purchase a mattress online from a retailer that has a physical presence in that state, you will be charged sales tax on your purchase.Online Mattress Sales Tax Laws in the US
Many people assume that they can avoid paying sales tax on a mattress by purchasing it in a state with a lower sales tax rate. However, this is not always the case. If you live in a state with a higher sales tax rate and you purchase a mattress in a state with a lower sales tax rate, you will still be responsible for paying the difference in sales tax when you bring the mattress back to your home state. Another common misconception is that buying a mattress online will help you avoid paying sales tax altogether. As mentioned earlier, this is not true in most cases. The only way to avoid paying sales tax on a mattress is if you live in a state with no sales tax, and even then, you may still be responsible for use tax.Common Misconceptions about Mattress Sales Tax in the US
While you may not be able to completely avoid paying sales tax on a mattress, there are some ways to save money on your purchase. One option is to wait for a sales tax holiday in your state, if available, to purchase your mattress. You can also look for retailers that offer discounts or promotions that may help offset the cost of sales tax. If you have a medical condition that requires a specific type of mattress, be sure to research if your state offers an exemption for medical reasons. Additionally, if you are purchasing a mattress online, consider buying from a retailer that does not have a physical presence in your state to potentially avoid paying sales tax.Tips for Saving Money on Mattress Sales Tax in the US
In addition to state sales tax, some cities and counties in the US also have a local sales tax. This means that the sales tax rate on a mattress may be different depending on where you live. It is important to check with your local government to see if there is a local sales tax and what the rate is before making a mattress purchase. Some states have a destination-based sales tax, which means that the sales tax rate is based on the location where the product is delivered, rather than where it is purchased. This can result in a higher sales tax rate if you live in a city or county with a higher local sales tax rate.Understanding Local Sales Tax on Mattresses in the US
If you are a consumer purchasing a mattress for personal use, you will not need to file sales tax. The retailer is responsible for collecting and remitting the sales tax to the state. However, if you are a business purchasing a mattress, you may be responsible for paying sales tax directly to the state. It is important to keep track of your mattress purchases and the sales tax paid in case you need to report it for tax purposes. You can also speak to a tax professional for more information on how to properly report sales tax on your mattress purchases.How to File Sales Tax for Mattress Purchases in the US
In recent years, there have been some changes to mattress sales tax laws in the US. As mentioned earlier, the Supreme Court ruling in 2018 gave states the authority to require online retailers to collect and remit sales tax, which has resulted in more people paying sales tax on online mattress purchases. Additionally, some states have made changes to their sales tax laws, such as increasing the sales tax rate or expanding the types of items that are subject to sales tax. It is important to stay updated on any changes to sales tax laws in your state to avoid any surprises when making a mattress purchase.Recent Changes to Mattress Sales Tax Laws in the US