How to Shop Tax Free Online

By Techwalla Business Editor

One of the great things about shopping online is that you can buy merchandise without worrying about paying taxes on your purchases. When paired with free shipping, this often makes buying online cheaper than purchasing the same items from a local retail store. Read on to learn more.

Step 1

Shop at online stores that don't have retail locations in your state. There are various laws regarding when a company is required to charge you tax and when they are not. For the most part, whenever you buy online from a company that also has a retail location in your state, such as Wal-Mart or Gap, you will be charged tax.

Step 2

Find a store that doesn't have any retail locations at all, as these types of stores generally provide tax free shopping. The best way to shop tax-free online is to order from a small Internet business located in another state or one in your state that isn't required to collect taxes.

Step 3

Read the company's tax policies before you attempt to make a purchase, if in doubt. If you can't find their tax policies, you can place the items in your cart and see if you are charged tax, before you pay.

Step 4

Avoid making purchases that will need to be returned, as the cost of return shipping will negate the savings you received by shopping tax-free. While this is one of the major drawbacks of shopping from a company that does not have a retail location in your area, careful shopping will keep it worth your while.