How To Claim a Holiday Sales Tax Exemption at Costco

December 15, 2021

Many people associate tax-free holidays with back-to-school sales and the fall. However, sales tax holidays occur throughout the year, not just in August. While many retailers provide these exemptions automatically, you may have to take a few steps to claim an exemption. Here is how to claim a holiday sales tax exemption at Costco.

When Are the Tax-Free Holidays?

There are 17 states that offer tax-free weekends or holidays throughout the year. They are typically announced at the beginning of each year, so be on the lookout for the 2022 tax holidays soon. Some of them start as early as February and go through August.

What Items Are Covered?

The items included in the sales tax holidays will vary, depending on where you live. In Alabama and Florida, for instance, you can get tax breaks on disaster preparedness items. When you check the price on things like generators, food storage, and other supplies, the tax break is welcome.

Most states’ tax-free holidays fall around the time school starts in the fall. During this time, you won’t pay taxes on any school supplies, clothes, and a select few other items. For parents, this can be a needed break, especially if they are shopping for multiple kids.

How You Claim a Tax Exemption at Costco

Costco already offers great deals but knowing how to claim a holiday sales tax exemption with them will help you save even more. Anyone shopping in-store at Costco, or any other retailer, during a sales tax holiday, will automatically get their exemptions at checkout. Eligible items will be scanned and the exemption will take place immediately.

If you are ordering items online, things get a little more complicated. Right now, Costco.com does not offer tax exemption at the time of sale. In fact, sales tax is applied at checkout in every state that requires it.

Anyone placing an order at Costco.com can still get their tax exemption though. You will just need to take action to claim it. If your order is shipped to a state with a tax holiday and you would like the exemption, send an email to taxrequest@costco.com with the subject line: Sales Tax Holiday Request.

In addition to this exact subject line, Costco also asks for very specific information to be included in the body of the email. Here’s what you’ll need:

Your Costco membership number
First and last name
The order number
Item(s) you want to be submitted for consideration
The state
Purpose of your purchase (personal or business)

Once you send the email, Costco will review your request. If everything checks out, they will issue your Costco account a credit. This is typically sent out in the form of a rebate voucher that you can bring to Costco and either use towards a purchase or cash out. If for some reason your request is denied, a Costco representative will reach out and let you know why and if you can take any additional steps.