What is the pink tax law? (2024)

What is the pink tax law?

The term “pink tax” was popularized around the mid-1990s, when the Gender Tax Repeal Act of 1995 passed in California, prohibiting price discrimination on services. The pink tax inflates the price of goods found on retail shelves, and small price differences can add up to women paying more than men over time.

How does the pink tax work?

Researchers in gender inequality often point to what's known as the “pink tax,” which is a theory that products marketed toward women cost more than nearly identical products targeted toward men.

What states have banned pink tax?

This markup has become known as the “pink tax.” Several states have removed taxes on menstrual and period products, including pads and tampons. Those states include California, New York, and Virginia. Other states, including Florida, have enacted separate laws banning sales taxes on baby diapers.

Is pink tax still a thing in 2024?

Currently, 21 states charge sales tax on period products (as of January 8, 2024). The sales taxes range from 4% to 7% in Indiana, Mississippi, and Tennessee. 5 U.S. states (Alaska, Delaware, Montana, New Hampshire and Oregon) do not have a statewide sales tax.

Who is against the pink tax?

Critics of the pink tax argue that it's pricing discrimination, and that it should be fought against. They believe that businesses are putting an unfair burden on women by forcing them to pay higher prices. The other side points out that some of these pricing differences result from the free market.

How many states still have the pink tax?

Over a lifetime, period products in the U.S. cost a total of around $6,000 per person, according to research published in 2021 — and that's before tax. In 21 states, a sales tax of between 4% and 7% applies to items like pads and tampons, making them more costly, data from the Alliance for Period Supplies show.

What is the pink tax ending?

AB-1287 Gender-base price discrimination

AB-1287 (2021-22) This bill will eliminate what the author calls the “Pink Tax” and ensure women achieve equality by prohibiting businesses from assigning different prices for identical products based on who they are marketed to.

Why are tampons taxed?

United States. Menstrual hygiene products are considered by many states within the United States as "tangible individual property" resulting in additional sales tax. This additional tax increases the overall price and further limits accessibility to menstrual hygiene products to lower-income women.

Why the tampon tax is good?

The primary argument in support of the tampon tax is revenue collection. Critics of this tax argue that menstrual hygiene products are basic necessities and taxing them is unconstitutional and a form of discrimination.

Do condoms have tax?

Their hygienic benefits help people participate in everyday life. Sales Tax Applies to Many Goods Used to Prevent or Treat Disease, Injury, or Death. For example, sales tax applies to bandages, condoms, toothbrushes, bicycle helmets, children's car seats, and over-the-counter medications.

Are tampons taxed as a luxury item?

Although there isn't a specific "tampon tax" on feminine products, they are taxed at the same rate as other consumer products, while items deemed essential are sold tax-free, such as aspirin and antacids. Critics say that discriminates against women.

How can I avoid pink tax?

Buy Generic or Store Brands

You'll need to read labels and compare ingredients, but when you do, you'll see that the formulas for no-name store brands often match their name-brand counterparts. Buying generic can be a great way to save because you're avoiding the markup caused by fancy packaging and marketing costs.

What will happen to taxes in 2026?

Under the TCJA, the tax rates are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. On January 1, 2026, the rates return to their pre-TCJA amounts of 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%. The income brackets to which those rates are to apply will also be different and are adjusted for inflation each year.

Should pink tax be eliminated?

Eliminating the Pink Tax eliminates one more barrier to gender equality. Compounded by the gender pay gap, arbitrary price differences are unjust and harmful. Women should be able to exercise their buying power without the fear of gender-based discrimination.

Is it more expensive to be a man or a woman?

Women are also likely to spend more, in proportion to their salaries, than men do, as the average single woman pays more in housing, healthcare and apparel and services due to cost of living, family size and other factors, according to BLS data.

Why we should abolish the pink tax?

The pink tax has long imposed an economic burden on women—especially since women continue to earn less than men. The United Nations has called on countries to eliminate the pink tax to ensure women have full and equal access to economic participation.

Who started the pink tax?

Where does this originate? Diane Bourdo: The pink tax officially dates back to 1994, when a report from California's Assembly Office of Research found that 64% of stores in five major cities charged more to wash and dry clean a woman's blouse than they did a man's button-up shirt.

Is there a pink tax on tampons?

The pink tax often refers to state sales tax on menstrual products, like tampons and feminine pads. Those feminine hygiene products are necessities for many women. But, many states tax feminine products as luxury items while exempting other necessities, like groceries and medicine, from sales tax.

What state has the highest tampon tax?

Sales tax on period product purchases as of 2023, by state

Tennessee, Indiana, and Mississippi were the three states with the highest tax rates for menstrual supplies at seven percent. This statistic depicts "tampon tax" (tax on period products) rates in the United States as of October 2023, by state.

Why did the pink tax start?

The pink tax dates back to at least the 1990s when a report from California's Assembly Office of Research found that 64% of stores in several major cities charged more to wash and dry-clean a woman's blouse than a man's button-up shirt.

Why is womens deodorant more expensive?

“The prices charged for products targeted to men and women differ, but it seems to be driven by the fact that the products themselves are different.” In other words, while it's true that women's deodorants often cost more than ones targeted to men, the women's version likely has different ingredients.

How many states still tax tampons?

As of October 31, 2023, the number of states in the United States where period supplies were taxed at a standard rate (tampon tax) amounted to 21 states.

Are condoms taxed in Florida?

(d) Contraceptive products, except when dispensed pursuant to a prescription written by a licensed practitioner, are subject to tax.

Are condoms taxed in NY?

Other over-the-counter hygiene products are sales tax free, including sunscreens, laxatives, condoms, aspirin and Motrin. But not TP or sanitary pads.

Can I write off tampons on taxes?

Specifically, the cost of menstrual care products is now reimbursable. These products are defined as tampons, pads, liners, cups, sponges or other similar products. In addition, over-the-counter products and medications are now reimbursable without a prescription. The new rules apply to amounts paid after Dec.

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