Monday, June 17, 2013

Finding the Right Sales Tax Table

Q.  Although our official residence is Texas, it occurred to me that with our travels, we may be able to take advantage of sales taxes in the various states we actually stay in. Other than keeping the receipts (which I dislike), what are our best options?

A.  Without keeping receipts, you can try 2 different approaches: (1) Use the sales tax tables for Texas. As TX is a no personal income tax state, their sales tax rates are higher than many states, and this might work nicely for you. (2) The IRS Worksheet for multiple moves  is another option. You can use the higher of the two without any problem.

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