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Yes, Virginia, you’ll probably pay tax on your Christmas tree

December 5, 2020
Christmas-wreath_2020-12-02

This year's fresh greenery component to our otherwise fake fir Christmas decorations. (Photo by Kay Bell)

It's the first weekend of December. That means millions of folks are untangling light strings, digging out cherished family holiday tchotchkes and making their homes merry and bright.

In many homes, a Christmas tree is the center of the celebration.

Fake fir, real celebration: For all but one Christmas over our decades of marriage, the hubby and I have had an artificial tree.

Our lone live tree December was our first in Florida because I was missing the season's traditional chill. I soon got over that. Watering a real tree and vacuuming up fir needles 10 months later is not for me.

Mainly, though, we go with a fake fir because I like putting up Christmas decorations early. Like before Thanksgiving early. One year right after Halloween early.

And I like leaving the seasonal display up longer. Like later than Epiphany longer. One year until Valentine's Day later.

So we gotta go artificial. Don't judge me! It's the holidays!

Christmas wreath receipt 2020Real wreath add-on: In our — OK, my — defense, we do get a real wreath to hang indoors so that we can enjoy that wonderful evergreen aroma.

This year, the natural touch pictured at the top of this post cost us $46.54. That includes $3.55 in combined state and local sales tax.

That tally means my answer to Jennifer Dunn's recent seasonal query, "Is your Christmas tree taxable?" is yes.

Here in Texas, live Christmas trees and their bow-bearing by-products are taxable.

And obviously, if you have to replace an artificial tree, sales tax will be tacked onto that plastic purchase, too.

More seasonal sales tax talk: Jennifer's question also is the headline of her recent post on TaxJar's sales tax blog.

And her exploration of this particular seasonal sales tax assessment earns this weekend's Saturday Shout Out.

I'll let you read it after you finish festooning your tree. But here's Jennifer's key takeaway:

Your Christmas tree is “tangible personal property.” Tangible personal property is almost always taxable. The only time it isn’t taxable is when there is some sort of exemption.

Sales tax exemptions: Ah, yes, even during the holidays, you can't escape perennial tax exceptions and exemptions.

In her post, Jennifer looks at some that apply to Christmas trees.

Personally, I don't mind paying the tax. I'm not Grinchy enough to let a few dollars mess up the most wonderful and my favorite time of the year.

Here's wishing you a good start to the 2020 holiday season. Or, if you're like me, the mid-point of Christmas time!

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The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

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TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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