How to qualify for a sales tax exemption for durable medical equipment and

How to Save Money with a Sales Tax Exemption for Home Medical Equipment

Armando Carillo Blog, Education

Because home accessibility is so important to healthy living, many states provide a sales tax exemption for durable medical equipment including stair lifts, wheelchair ramps, wheelchair lifts, overhead ceiling lifts and many other useful equipment. This can save you money if you understand how it works.

Sales tax for many states is between 5% and 12% based on where you live. In order to qualify for a sales tax exemption and save this money, you typically need to get a prescription or a letter of medical necessity from a doctor or therapist. Some states have a specific form to fill out in order to qualify.

The concept behind this tax savings is that Mobility Enhancing Equipment, Home Accessibility Equipment, and Durable Medical Equipment are medically necessary for safe and healthy living and therefore tax deductible. Since staying in your home is much less expensive than moving to an assisted living facility or a nursing home, exploring a sales tax exemption can actually put money back in a person’s pocket. In context to tax exemptions for medical equipment, it’s important to understand the definitions between the three type of accessibility equipment as are referenced by the forms used in each state.

Mobility Enhancing Equipment

Equipment, including repair and replacement parts for such equipment, that is primarily used to provide or increase the ability to move from one place to another within a home or a motor vehicle. This equipment is not generally used by persons with normal mobility.

Examples of mobility enhancing equipment includes canes, crutches, motorized scooters, stair lifts, walkers, wheelchairs, wheelchair ramps, wheelchair lifts, vertical platform lifts, overhead ceiling lifts, in addition to door widening and bathroom remodeling for accessibility.

Home Accessibility Equipment

Equipment installed in a home to help move between spaces and levels. Examples include stairlifts, ramps, custom built stairs (like easy steps), body lifts, wheelchair lifts and elevators.

Durable Medical Equipment

Any medical equipment used in the home to aid in a better quality of living. Examples of durable medical equipment include manual and electric wheelchairs, hospital beds, canes, crutches, walkers, bath & shower chairs, commode chairs, and grab bars.

Is a Prescription Required?

A prescription order is required that includes the name and address of the person in need of mobility equipment, and it must be signed by a practitioner who can prescribe any drug or device, much like a doctor does medications. An occupational therapist or physical therapist are also authorized to write up a prescription order. Below are links to specific states’ resources and are a good place to start.

Colorado Sales Tax Exemption for Medical Equipment >>

Utah State Sales Tax Exemption for Mobility Enhancing Equipment and Durable Medical Equipment >>

Texas Sales Tax Exemption for Home Medical Equipment >>

Other States with Sales Tax Exemptions for Mobility Enhancing Equipment and Durable Medical Equipment >>

North Dakota
Rhode Island
South Dakota
West Virginia
New Jersey
North Carolina

Request a Consultation

For professional health workers and consumers in Colorado, Utah and the Dallas, TX areas, request an evaluation by an Accessible Systems certified home accessibility specialist near you.  Qualifying for sales tax exemptions for medical equipment is confusing, so let us help!