Shoppers Might Save More Before and After Tax Free Weekend

Columbia, SC—Irvin Anderson was shopping for school supplies Wednesday with his daughters, even though if he waited two days he could buy them without paying the state sales tax on them. “Oh, I don’t want the rush,“ he said, referring to the big crowds during the state’s tax-free weekend.

The tax-free weekend exempts from the state sales tax things like school supplies, clothing and computers. You can find a detailed list here. The sale starts Friday morning and continues until Sunday night.

Clearly it’s popular with South Carolina shoppers. According to the state Department of Revenue, shoppers save about $2.9 million a year during the tax-free weekend.

But it’s possible that, by watching for sales and waiting for clearances, they could save even more than they would by not paying sales tax.

Julie Wenger finished buying school supplies for her three daughters weeks ago, saying she doesn’t want to fight the tax-free weekend crowds. But even though she paid sales tax on what she bought, she doesn’t think she paid much, if any, more. “I think I just get a good deal just by shopping when everything’s on sale, rather than going tax-free,“ she says.

Richard Clodfelter, a professor at the University of South Carolina’s Department of Retailing, says shoppers might be able to get better deals some time other than the tax-free weekend.

“Retailers are moving prices downward for summer clearance and that’ll continue through Labor Day and afterwards,“ he says. “So for some stores, better prices are three or four weeks away.“

He warns that there is a downside to waiting, though. The selection will be worse after everything has been picked over during previous sales. And he says on high-priced items like computers, you probably won’t find a sale that will save you more than you would during the tax-free weekend.