Paycheck Chronicles

Textbooks are Tax-Exempt In Some States

You learn something new every day!

Today, I learned that some states exempt some or all textbooks from sales tax.  Details vary by state, so if you are in one of these states, you might want to ask around when you are buying textbooks.

This chart lists the state, the state sales tax rate, and what books are exempt from sales tax.  Local tax situations will vary.

(Information gathered from a variety of sources and to be used only for reference.)

Arizona

5.60% sales tax

Only textbooks required by a state or local community college are tax-exempt.
Connecticut

6.35% sales tax

College level textbooks are tax-exempt.  Documentation of coursework required. K-12 textbooks are tax-exempt if less than $20 and sold by the school.
Florida

6.00% sales tax

K-12 textbooks are tax-exempt.
Indiana

7.00% sales tax

K-12 textbooks are tax-exempt.
Kentucky

6.00% sales tax

Textbooks are tax-exempt.  Documentation of coursework required.
Massachusetts

6.25% sales tax

Textbooks are tax-exempt.  Documentation of coursework required.
Minnesota

6.875% sales tax

Textbooks are tax-exempt.  Documentation of coursework required.
Mississippi

7.00% sales tax

Textbooks are tax-exempt.
Missouri

4.225% sales tax

Textbooks are tax-exempt when sold by K-12 school or bookstore of post-secondary institution.  Documentation of coursework required.
Nevada

6.85% sales tax

Textbooks sold within the University of Nevada System are exempt from sales and use and local school support taxes. Textbooks sold within the Community College System are exempt from local school support tax only.
New Jersey

6.875% sales tax

Textbooks are tax-exempt.  Documentation of coursework required.
New Mexico

5.125% sales tax

Textbooks are tax-exempt when sold by K-12 school or bookstore of post-secondary institution.
New York

4.00% sales tax

College level textbooks are tax-exempt.  Documentation of coursework required.
North Dakota

5.00% sales tax

Textbooks are tax-exempt.  Documentation of coursework required.
Oklahoma

4.50% sales tax

Textbooks sold by schools are tax-exempt.
Pennsylvania

6.00% sales tax

Textbooks sold by designated school bookstores are tax-exempt.
Rhode Island

7.00% sales tax

Textbooks sold by schools are tax-exempt.  All used textbooks are tax-exempt.
South Carolina

6.00% sales tax

Textbooks are tax-exempt.  Documentation may be required.
Tennessee

7.00% sales tax

Textbooks are tax-exempt.
Vermont

6.00% sales tax

Textbooks sold by designated school bookstores are tax-exempt.
Virginia

5.30% sales tax

Textbooks sold by designated school bookstores at non-profit colleges are tax-exempt.
West Virginia

6.00% sales tax

Textbooks are tax-exempt.  Documentation of coursework required.
This can be a big savings. My daughter and I just spent over $600 on her textbooks for this semester.  If they had been tax-exempt, we would have saved over $36 on her book bill.

I love it when I learn new things!

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