Is your loved one’s final resting place costing more than it should?
Most of us don't think twice about taxes when grieving a loss, but funeral sales tax can quietly inflate the bill at one of life’s most emotional moments. One consumer recently raised a question that stops many in their tracks:
Can a funeral home charge sales tax for a casket and burial vault that go into the ground?
The answer isn’t as straightforward as you’d hope.
The Hidden Cost of Saying Goodbye
Funerals are already expensive, averaging around $8,000 nationwide. That figure includes the casket, burial vault, flowers, services, and more. But layered onto these items in many states is an often-overlooked cost: sales tax.
The logic might seem strange. If an item is literally going into the ground, shouldn't it be exempt? Unfortunately, no. Most tangible items purchased for a funeral, including caskets, urns, flowers, and burial vaults, are subject to sales tax in many states.
It’s not because you’re being unfairly targeted, but rather because sales tax is triggered at the point of sale, regardless of the item’s ultimate destination.
Why It’s Complicated: State-by-State Confusion
Tax laws on funeral expenses vary wildly across the country. For instance:
- In California, embalming fluid is tax-exempt because it's considered “consumed” by the embalmer, not the deceased.
- In Ohio, tangible items like urns and flowers are taxable, but cremation services are not.
- Some states tax caskets but exempt headstones. Others do the opposite.
There’s no consistent national rulebook. Instead, what’s taxed (and what isn’t) often comes down to how a state classifies each product or service, and, frankly, how strong the lobbying efforts have been in shaping those tax codes. It can feel arbitrary, even unfair, especially during a time of mourning.
And don’t look to the IRS for a break: funeral expenses are not deductible on individual federal tax returns. However, if an estate is footing the bill, some costs may be deductible from the estate itself.
What You Can Do to Save on Funeral Costs
While taxes may be unavoidable, there are ways to lessen the financial blow:
- Shop Around: It may feel uncomfortable, but funeral homes are required to provide itemized price lists. Costs can vary significantly between providers.
- Consider Cremation: If it aligns with your values, cremation can cut costs dramatically compared to traditional burial.
- Explore Green Funerals: Skipping embalming and using biodegradable materials isn’t just eco-friendly, it’s often cheaper. Some green cemeteries don’t even require a casket.
- B.Y.O.C. – Bring Your Own Casket: Funeral homes must allow you to supply your own casket, which can be purchased online for far less than in-house offerings. Yes, that’s a real and legal option.
Final Thought
Funerals are deeply personal, but they’re also commercial transactions. And where there are transactions, there are taxes. Understanding what you’re paying for and where you can save can ease some of the burden during an already difficult time.