Hardware Clearance • By Sarah Maloney, Deals Director • Published September 2026

The Home Depot "Yellow Tag" Clearance Decoder: Price Codes & Markdown Timing

Behind every yellow clearance sticker at The Home Depot is a standardized inventory liquidation timeline. Knowing how to read the printed dates and cents digits reveals exactly how much further an item will drop—or whether it is at its final floor.

1. The Yellow Tag Ending Digit Code

Unlike white retail price tags (which end in .00, .98, or .99), Home Depot clearance stickers follow an algorithmic markdown schedule based on their final cents digits:

Ends in .06 (First Markdown — ~25% to 50% Off):

Indicates the item has entered store-level clearance. It will remain at this price for approximately 6 weeks (42 days). If inventory remains, it will drop to the next stage.

Ends in .03 (Second Markdown — ~70% Off):

The item has been marked down further. It will sit at this price for approximately 3 weeks (21 days). This is typically the best balance between deep discount and inventory availability.

Ends in .02 (Final Liquidation — Up to 75-80% Off):

Final store clearance. Whatever inventory remains is scheduled to be pulled from the floor or destroyed shortly. If you see an item you need ending in .02, buy it immediately.

2. How to Read the Printed Date Stamp

Look at the bottom right corner of any yellow Home Depot sticker. You will see a small date printed in MM/DD/YY format:

  • This timestamp indicates the exact day the current markdown was printed and affixed to the product.
  • The Calculation: If an item ending in .06 was tagged 35 days ago, you know it is due for an automated drop to .03 within the next 7 days.

3. What Happens to "Penny Items" ($0.01)?

In Home Depot's inventory system, when an item sits past its final markdown period without selling, the system automatically drops its price to $0.01. This is an internal signal instructing store associates to remove the product from the shelf and return it to the manufacturer for salvage credit.

Important Store Policy Note: Cashiers are instructed by store management not to sell items that ring up as a penny. However, self-checkout kiosks may allow the transaction if the item was left on the retail shelf. Never confront associates over penny items.

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