Candy is exempt from state food taxesSweet deals for all those trick-or-treaters in: California, District of Columbia, Massachusetts, New Mexico and West Virginia.

No masks needed for your walletCostumes are exempt from state sales taxes in: Massachusetts, Minnesota, New Jersey, Rhode Island and Vermont.

Sales Tax That Won’t Frighten You

Calling All Sales Tax ShopportunistsVisit these states with no state sales tax this holiday season: Alaska • Delaware • Montana • New Hampshire • Oregon If you aren’t on a budget, visit the state of Connecticut, where its luxury tax of 7.75% (compared with 6.35% on most items) applies to motor vehicles exceeding $50,000, vessels over $100,000, jewelry over $5,000, clothing and footwear over $1,000, and handbags, luggage, umbrellas, wallets or watches over $1,000.

SOURCE:Wolters Kluwer, Sales Tax Rates

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Thanksgiving State Sales Tax Diets

States that apply state sales tax to all food at the full tax rate:

Alabama • Hawaii • Idaho • Kansas • Mississippi • Oklahoma • South Dakota

States that partially tax food (either state low rate or state exempts and many or all local tax):

Arizona • Arkansas • Colorado • Georgia • Illinois • Louisiana Missouri • North Carolina • South Carolina • Tennessee • Utah • Virginia

All levels of government exempt food and include candy on the definition of food:

California • District of Columbia • Massachusetts • Michigan • Nebraska • Nevada New Mexico • Ohio • Pennsylvania • Vermont • Washington • West Virginia • Wyoming

Now Serving Sales TaxThe taxability of prepared food purchased from a supermarket deli varies based on such factors as whether it is made by the seller or just sliced or repackaged; whether it is sold hot; whether it is sold by weight or volume (a pound of something) or by the unit (like a whole turkey); and whether it is separate meal components versus multiple items sold for a single price. For example, mashed potatoes and meatloaf priced separately or sold as a combo.

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Intelligence for TAXATION

© 2015 CCH Incorporated and its affiliates. All rights reserved.