Say that you are about to make a major purchase and would like to save money on sales tax. Which of these is a viable way to reduce the amount you will pay on sales tax?

Question

a.
Sales tax is a tax like any other, so you can claim additional dependents and get a deduction on it.
b.
Businesses are allowed to charge a 1% fee for automatically calculating sales tax for you, so you should calculate the sales tax out yourself.
c.
Sales tax varies by state, so you can travel to a state with a lower tax rate and make your purchase there.
d.
If you buy an item on credit, the credit bureau must pay the sales tax instead of you, so you should make your purchase using a credit card.

Answer 1

The viable way to reduce the amount you will pay on sales tax from the options you provided is:

c. Sales tax varies by state, so you can travel to a state with a lower tax rate and make your purchase there.

This is because sales tax rates differ from state to state, and purchasing an item in a state with a lower tax rate can indeed reduce the overall sales tax you pay. The other options are not valid methods to save on sales tax.