Don't Mess With Taxes

Mother’s Day is Sunday, May 11. Have you bought your mom a present yet?

Don't panic. You still have time.

And don't stress over finding the perfect gift. In most cases, it’s true that all Mom wants is just to see her children.

But if you do want to take some token of thanks for all that your mother has done and sacrificed for you, chances are it will be flowers.

Billions spent on Mom: The National Retail Federation’s (NRF’s) annual Mother’s Day survey, conducted in conjunction with Prosper Insights & Analytics, found that, once again, the most popular gift category is flowers. Seventy-four percent of survey respondents said they were taking mom a bouquet.

A close second, 73 percent, is a nice greeting card for mom. Special outings, such as dinner or brunch, come in third at 61 percent.

Overall, NRF expects $34.1 billion expected to be spent on those and other gifts this Mother's Day. Those celebrating May 11 plan to spend, on average, $259.04 on gifts and celebrations, about $5 more than they budgeted in 2024.

As for how that money will be parceled out, NRF says consumers will spend a total of $6.8 billion on jewelry, $6.3 billion on special outings, and $3.5 billion on gift cards.

Total spending on flowers is expected to reach $3.2 billion, while total spending on greeting cards is expected to reach $1.1 billion.

“Even in the face of economic uncertainty, consumers continue to celebrate the special women in their lives with gifts and outings,” said Katherine Cullen, Vice President of Industry and Consumer Insights for NRF.

Nationwide sales tax rates: Whatever you plan to give your mother, be sure to budget for taxes. In most places, state and often local tax officials collect a sales tax on the items, or meals, purchased for mom’s special day or any other day.

Forty-five states collect statewide sales taxes. The five without a statewide sales tax are Alaska, Delaware, Montana, New Hampshire, and Oregon.

Consumers also face local sales taxes in 38 states, including Alaska which allows local jurisdictions in the Last Frontier to collect their own levies.

If you’re in one of the other states with sales taxes and are unsure about your state and local tax rates, check out the Sales Tax Institute’s table

It shows California as having the highest state rate at 7.25 percent. Additional local sales tax rates can be as high as 9.5 percent.

Tennessee is a close second with a state sales tax of 7 percent, and local rates that could bump payments up another 2.75 percent. Neighboring Mississippi state sales tax also is 7 percent, but its top local rate is 1 percent.

Indiana has a 7 percent state sales tax, but Hoosiers don't face any local sales taxes. That's the same situation in Rhode Island with a 7 percent state sales tax and no local levies.

The Sales Tax Institute table shows Colorado with the lowest state sales tax rate at 2.9 percent. Local sales levies, however, could be as high as 8.3 percent.
    

U.S. Census Bureau
   

Average combined rates: The Tax Foundation also has analyzed state and local sales taxes. The Washington, D.C.-based tax policy organization’s numbers crunching shows that Louisiana has the highest average combined state and local sales tax rate at 10.12 percent.

Rounding out the top five of average combined sales tax rates are Tennessee at 9.56 percent, Arkansas at 9.46 percent, Washington at 9.43 percent, and Alabama at 9.43 percent.

The five states with the lowest average combined rates per the Tax Foundation are Alaska at 1.82 percent, Hawaii at 4.50 percent, Wyoming at 5.44 percent, Maine at 5.50 percent, and Wisconsin at 5.70 percent.

As for the Golden State with the highest basic state sales tax rate of 7.25 percent, it fares better under the Tax Foundation calculations. California's average combined state and local sales tax rate is 8.802 percent.

And low state sales tax rate Colorado has a 7.857 percent combined average rate.

But what’s a bit more when we’re buying a gift for mom, especially for Mother’s Day? Whatever you give or how you celebrate, may this full Mother’s Day weekend and Sunday’s official day be special for all.

You also might find these items of interest:

• 6 major life events that could affect your taxes
• Mom to fur babies? 5 ways your pet might help cut your tax bill
• Moms still waiting on increased Child Tax Credit gift from Congress

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