I know best buy had the $50 + $100 gift card in January, and Wal-Mart was $127 for a while. If I were to buy my wife an iPhone 5 tomorrow (on contract, upgrade pricing), where's the cheapest place? Is there a way to buy online to avoid tax? Would locally discounted but with tax (7% in Iowa) be the way to go? Cheers!
To avoid contract you will have to buy full retail $650 plus tax. You can also save a couple bucks and buy it on Craigslist for $400-$450. Haggle your way down. Make sure you are safe about it though (meet at carrier store to get it activated). For on-contract...it depends on the carrier you are on. AT&T for example has refurbs that are cheaper but technically "new".
Well tax is regulated by the state you are in. If you aren't in a no-tax state you are out of luck. What state are you in? Maybe you live on the border of your state next to a no-tax state? A quick drive over the border to get the item could work.
That doesn't mean anything. State laws vary and your state could very well be one of those where sales tax is supposed to be collected even on online purchases. I can't speak to your state's specific sales tax laws.