Thanksgiving Comes With a Side of Sales Tax

Thanksgiving is all about good food, family, and friends. But there's one thing you might not be thinking about while preparing your holiday feast: sales tax.

Depending on where you live and what you're serving, even Thanksgiving dinner can come with a few unexpected tax rules.

Here are a few things to keep in mind before the big meal.

Not All Food Is Taxed the Same

Picking up groceries for Thanksgiving? In many states, most grocery staples are exempt from sales tax or taxed at a reduced rate. But prepared foods can be a different story.

For example, buying ingredients to make your own pie may be treated differently than purchasing a ready-made dessert from a bakery. The same goes for prepared meals, deli trays, and other ready-to-eat items.

The Great Cranberry Debate

Believe it or not, even cranberries have created sales tax confusion. In some states, the tax treatment of dried cranberries can depend on whether they're classified as dried fruit or candy.

Apparently, even the cranberry sauce isn't safe from tax debates!

Dining In vs. Taking Out

Planning to skip the cooking this year? Restaurant meals are generally subject to sales tax, but the rules for takeout and prepared food can vary by state and locality.

In other words, whether you're eating turkey at the restaurant or bringing it home to the family, the tax treatment may not be exactly the same.

Don't Forget the Extras

From wine and holiday meal delivery to hotel stays and airfare, Thanksgiving travel and entertaining can come with additional taxes. The rules depend on the type of purchase and where the transaction takes place.

A Little Something to Be Thankful For

Thanksgiving sales tax rules are a good reminder of just how complicated sales tax can get. What seems like a straightforward purchase in one state may be treated completely differently in another.

This holiday season, leave the sales tax headaches to the experts. TaxConnex helps businesses navigate complex sales tax requirements so they can focus on what matters most.