Missouri, Tennessee host tax free holidays
PADUCAH — It's a weekend many parents and teachers look forward to every year. The sales tax holidays in Tennessee and Missouri. The incentive to save money even drives people from Illinois and Kentucky into the two states.
Both states break their categories down into three groups: clothes, school supplies and computers, and both states offer tax exemptions on clothing sales up to $100.
In Missouri, the state sales tax is 4.225 percent and in Tennessee it's 7 percent.
As for school supplies, Missouri exempts tax on sales up to $50 and Tennessee exempts up to $100.
Computer sales are where the two states really differ. In Missouri, computer sales can reach up to $3,500 and still be tax-free. There's also a separate $350 available tax-free for additional software.
In Tennessee, however, computer sales need to be kept under $1,500 and additional software is not included.
In both states, shoppers will most likely still pay a local tax but there are a few towns and cities that actually waive their taxes, too.
The sales holiday ends Sunday at midnight.