Colorado Will No Longer Tax Period Products and Diapers. See How Much You Can Save

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KEY POINTS

  • Essential hygiene products like diapers and tampons are expensive -- and many states charge sales tax when you buy them.
  • Colorado will no longer charge sales tax on period products and diapers, thanks to a new law.

Period products, diapers, and incontinence products will no longer be taxed in Colorado.

Essential hygiene products like menstrual products and diapers are expensive. In many states, these products are taxed. Colorado has made a change that will positively impact the wallets of many residents. The state will no longer impose a state sales tax on period products, diapers, and incontinence products.

In early 2022, Governor Jared Polis announced the many ways his administration planned to save Coloradans money. One goal was to eliminate the tampon and diaper tax.

The proposed legislation was approved, and he has officially signed the bill into law. The tax exemption was set to begin in January 2023, but consumers will get relief much sooner.

As of Wednesday, Aug. 10, 2022, taxes will no longer be imposed on qualifying items. This includes items like pads, tampons, diapers, bladder control pads, and adult diapers.

Essential hygiene products can be pricey

Many Americans live on a strict budget and struggle to purchase essential items like diapers and tampons. No one should have to go without basic necessities.

Companies charge a lot of money for these products, and having to also pay state sales tax increases the financial burden for many. Low-income households are most impacted.

The new tax exemption will help Coloradans keep more money in their bank accounts and make these must-have items more accessible.

How much money could you save?

If you're a Colorado resident, this is likely welcome news.

Are you wondering how much money you'll save?

The exact amount depends on which products you buy and how often you buy them.

Here are some stats:

  • According to the National Diaper Bank, it costs $70 to $80 per month to diaper a child.
  • An INTIMINA study conducted by OnePoll, revealed that the average woman spends $13.25 monthly on menstrual products.

Let's break down the yearly cost for one household: If one family member uses period products and one child wears diapers (with diapers costing $75 monthly), the household can expect to pay $1,059 on diapers and period products throughout the year.

Colorado's state sales tax is 2.9%. The new no-tax law would save the above family $30.71 yearly by not having to pay taxes on period products and diapers.

The savings will add up -- especially for those with multiple family members with periods or multiple young children.

Other states are making changes

Other U.S. states are also making changes to make these items more affordable by making period products tax-free.

Some states are taking other actions. Several states, like New York, Illinois, Maine, and New Hampshire require free menstrual products to be made available in schools with students of menstruating age.

All of these changes make a difference. Hopefully more will be done to make necessary personal hygiene products affordable and available regardless of income limitations.

You're not alone if you can't afford essentials like pads and diapers.

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