As the big day approaches, you may be finalizing your grocery list for your delicious Thanksgiving feast. While many items you purchase for Thanksgiving dinner will be sales tax free, there are a few key things to be aware of. In this blog post, we break down the sales tax implications of your big turkey dinner. Stay informed and have a happy Thanksgiving!
Turkey Dinner Sales Tax Obligations
First, we look at the most essential part of Thanksgiving – the food! Currently, you will only be taxed on groceries in 11 states, and many of these 11 have either reduced or paused that charge as inflation rates soar.
Maybe you decide to bypass the stress of cooking and choose to eat out at a restaurant or order takeout. If you do eat at a restaurant, you will be charged sales tax in most states. Check out this comprehensive guide to see what you may be charged on top of your base meal price. If you would rather eat from the comfort of your home and decide on takeout, this guide lists your state’s sales tax prices for prepared foods consumed at home.
Food probably isn’t the only purchase you are making for the holiday. If you are using the following items as part of your Thanksgiving feast, you will likely be charged sales tax on:
- Wine/Alcohol
- Fall or Thanksgiving-themed decor
- Place settings, silverware, platters, etc.
Am I Charged Sales Tax On Thanksgiving Items I Buy Online?
Prior to the 2018 Wayfair Decision, online sellers only needed to collect and remit sales tax for states they had a physical presence in. Today, every state with sales tax has established some set of economic nexus legislation, meaning that online products are subject to sales tax based on the state the buyer is located in, as long as they meet a certain threshold of sale items or sale dollar total.
Thanksgiving Travel & Sales Tax Requirements
Are you planning to travel for the holidays? If you are visiting Delaware, Montana, New Hampshire, Oregon or Alaska, you may want to make your turkey day purchases after you arrive – these states do not have statewide sales tax. If you are spending the holidays in Alaska, keep in mind that even though they do not have a statewide sales tax, they do allow cities and towns to levy sales taxes.
We Are So Thankful For You!
We appreciate our amazing clients and colleagues all year, but this holiday of thanks is the perfect excuse for us to remind you how grateful we are for your continued support of Miles Consulting Group. Thank you for being part of our family, and have an amazing holiday!
If you have questions about your state sales tax obligations, please contact us today. We’re happy to clarify any multistate tax issues you’re trying to navigate.
