You might have heard people talking more over the last two years, on the subject of the “pink tax.” But what is it and what does it have to do with the tampon tax? Are they the same thing or something completely different? And what do I need to know when it comes to sales tax? If you’re a grocery business, women’s subscription service or eCommerce seller (like LOLA, Cora or Thinx) – this impacts you and your customers.
What is the Pink Tax?
The pink tax is the extra amount that women pay for everyday items such as razors, shampoo, haircuts, clothes, dry cleaning, etc. This is sometimes, but not always, a literal (sales) tax. More often than not, it takes the form of artificially elevated prices that women pay for the same product as men. Take razors for example. Same brand, same 5 blades, same four pack refill. Notice the price difference?
Also, packaging and/or the product itself is usually pink, hence the pink tax moniker.
The Tampon Tax
One controversial part of the pink tax is known as the tampon tax. This is a regular sales tax that’s applied to an item in a category generally considered “non-luxury necessities,” which are typically exempt from sales tax. Why is it controversial? Almost all U.S. states exempt non-luxury necessities such as groceries or prescriptions from sales tax, and yet almost all states charge tax on menstrual products, including pads and cups – despite that these items are considered a necessity by most women. To make it clear, women’s menstrual products are considered luxury necessities and are taxed as such.
What’s Happening with the Tampon Sales Tax?
The result is an organized push (Period Equity; Tax Free Period) to repeal the tampon tax, to change the law to treat these products like groceries and medical supplies – that they are necessities and should be tax-exempt. Lawmakers in many states are advocating to eliminate the tampon tax. Fourteen states have succeeded so far – Connecticut, Florida, Illinois, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New York, Pennsylvania, Rhode Island, Utah, Ohio, Washington, DC.
Where Do States Stand?
States that Tax Menstrual Products
Alabama: Currently taxes menstrual products
Arizona: Currently taxes menstrual products
Arkansas: Currently taxes menstrual products
Colorado: Currently taxes menstrual products, except the city of Denver which eliminated the tax.
Georgia: Currently taxes menstrual products
Hawaii: Currently taxes menstrual products
Idaho: Currently taxes menstrual products
Indiana: Currently taxes menstrual products
Iowa: Currently taxes menstrual products
Kansas: Currently taxes menstrual products
Kentucky: Currently taxes menstrual products
Louisiana: Currently taxes menstrual products
Maine: Currently taxes menstrual products
Michigan: Currently taxes menstrual products
Mississippi: Currently taxes menstrual products
Missouri: Currently taxes menstrual products
Nebraska: Currently taxes menstrual products
New Mexico: Currently taxes menstrual products
North Carolina: Currently taxes menstrual products
North Dakota: Currently taxes menstrual products
Oklahoma: Currently taxes menstrual products
South Carolina: Currently taxes menstrual products
Tennessee: Currently taxes menstrual products
Texas: Currently taxes menstrual products
Vermont: Currently taxes menstrual products
Virginia: Currently taxes menstrual products
Washington: Currently taxes menstrual products
West Virginia: Currently taxes menstrual products
Wisconsin: Currently taxes menstrual products
Wyoming: Currently taxes menstrual products
States that Don’t Tax Menstrual Products
Alaska: Doesn’t have a state-wide sales tax. Menstrual products are tax-free.
California: Temporarily tax-free through 2022
Connecticut: Eliminated the tax in 2016
Delaware: Doesn’t have sales tax. Menstrual products are tax-free.
Florida: Eliminated the tax in 2018
Illinois: Eliminated the tax in 2016
Maryland: State sales tax exemption includes feminine hygiene products (considered medical products)
Massachusetts: State sales tax exemption includes feminine hygiene products (considered medical products)
Minnesota: State sales tax exemption includes feminine hygiene products
Montana: Doesn’t have sales tax. Menstrual products are tax-free.
Nevada: Eliminated the tax in 2018
New Hampshire: Doesn’t have sales tax. Menstrual products are tax-free.
New Jersey: State sales tax exemption includes feminine hygiene products
New York: Eliminated the tax in 2016
Ohio: Eliminated the tax in 2019
Oregon: Doesn’t have sales tax. Menstrual products are tax-free.
Pennsylvania: State sales tax exemption includes feminine hygiene products
Rhode Island: Eliminated the tax in 2019
Utah: Exempted the tax in 2019
Washington, DC: Eliminated the tax in 2016
TaxJar can help you manage the nuances of product tax codes by allowing for exemptions and supporting detailed product tax code categories – such as femine hygiene products. Learn more about how we simplify sales tax compliance through automation, integrations and nexus determination.
