Buying an iPhone without paying sales tax is possible under specific circumstances, primarily if you are a qualifying tax-exempt entity or if the purchase is shipped to a state that does not collect a statewide sales tax.
1. For Tax-Exempt Organizations and Qualified Individuals
If you are purchasing an iPhone on behalf of a tax-exempt organization, such as a non-profit, educational institution, or government agency, you may be eligible for a sales tax exemption. Certain individuals with specific tax-exempt statuses may also qualify.
To arrange such a purchase:
- Contact an Apple Store Specialist: You will need to place your order by calling Apple's dedicated line at 1‑800‑MY‑APPLE.
- Provide Proof of Exemption: Be prepared to submit official documentation verifying your state tax-exempt status for the state where the product will be shipped. This typically includes a valid tax exemption certificate or a federal Employer Identification Number (EIN) for qualifying organizations.
This method ensures that purchases made for official, tax-exempt purposes are not subject to sales tax.
2. Shipping to a State with No Statewide Sales Tax
One of the most straightforward ways for any consumer to avoid sales tax on an iPhone is to have it shipped to an address located in a state that does not impose a statewide sales tax.
The U.S. states currently without a statewide sales tax are:
| State | Notes |
|---|---|
| Delaware | Known for no sales tax on most goods and services. |
| Montana | No statewide sales tax. |
| New Hampshire | No statewide sales tax on goods. |
| Oregon | No statewide sales tax. |
If you have a friend, family member, or a trusted parcel service in one of these states, you could potentially arrange for the iPhone to be shipped there. However, be aware of any potential shipping costs or logistics involved in getting the phone from that state to your location.
3. During Sales Tax Holidays (Limited Applicability for iPhones)
Some states offer "sales tax holidays" during specific periods, typically before the start of the school year. During these holidays, certain categories of items are temporarily exempt from sales tax.
- Eligibility: While electronics may sometimes be included, high-value items like iPhones often exceed the specified price cap for exemption, or are excluded entirely. These holidays are generally aimed at school supplies, clothing, and sometimes smaller electronics.
- Check State Regulations: It's crucial to check your state's Department of Revenue website for specific dates, eligible items, and price limits for any upcoming sales tax holidays. It's rare for an iPhone to qualify under these programs due to its high price point.
4. Purchasing for Resale (Business Use)
If you are a business purchasing an iPhone with the explicit intent to resell it to your customers, you can typically avoid paying sales tax at the time of purchase by providing a valid resale certificate to the vendor.
- Resale Certificate: This certificate attests that the item is being bought for resale and that sales tax will be collected when you sell the item to the end-user.
- Business Registration: You must be a registered business with the appropriate tax ID numbers to qualify for this exemption. This method is not applicable for personal use.
Understanding these specific scenarios can help you navigate the process of acquiring an iPhone without incurring sales tax, provided you meet the necessary criteria.
