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State Sales Tax Holidays Can Ease Back-to-School Shopping Costs. Does Your State Host One?

Believe it or not, the back-to-school shopping season is here. And I don't blame you if you're not excited about shelling out a small fortune on school gear and electronics. But in addition to shopping back-to-school deals and sales, there's another way to save some money on school supplies: shop during your state's sales tax holiday weekend, if it participates.

This year, 16 US states are holding tax-free weekends throughout July and August to offer some relief on back-to-school shopping items for financially stressed shoppers. You can save money on essentials like clothing and school supplies, as well as big ticket items like laptops. Each state has its own rules and tax exemptions, so be sure to read the specifics.

Find out if your state participates and learn which back-to-school items will be tax free.

States holding back-to-school sales tax holidays in 2024

StateState sales taxTax-free dates
Alabama4%July 19-21
Arkansas6.50%August 3-4
Connecticut6.35%Aug. 18-24
Florida6%July 29 – Aug. 11
Iowa6%Aug. 2-3
Maryland6%Aug. 11-17
Massachusetts6.25%Aug. 10-11
Mississippi7%July 26-27
Missouri4.23%Aug. 2-4
New Mexico5.13%*Aug. 2-4
Ohio5.75%July 30 – Aug. 8
Oklahoma4.50%Aug. 2-4
South Carolina6%Aug. 2-4
Tennessee7%July 26-28
Texas6.25%Aug. 9-11
West Virginia6%Aug. 2-4

The first weekend in August is a popular time for sales tax holidays, with nine states offering exemptions during that time. Fourteen states total host sales tax holidays that run in August.

Alabama


Dates: 
July 19-21, 2024

Tax-free items:

  • Most clothing under $100, including pants, shirts, shoes, coats and school uniforms, as well as diapers. 
  • Computers under $750.
  • School supplies costing less than $50 per item.
  • Books under $30.
  • For the full list of items, visit the Alabama Department of Revenue.

Arkansas

Connecticut

Florida


Dates:
 July 29-Aug. 11, 2024

Tax-free items

Iowa

Maryland

Massachusetts

Mississippi

Missouri

Dates: Aug. 2-4, 2024

Tax-free items

  • Clothing: $100 or less per item.
  • School supplies: $50 or less per item.
  • Computer software: $350 or less per item.
  • Personal computers and peripherals: $1,500 or less per item.
  • Graphing calculators: $150 or less per item.
  • View the full list of items on the Missouri Department of Revenue website.

New Mexico

Dates: Aug. 2-4, 2024

Tax-free items

Ohio

Dates: July 30-Aug. 8, 2024

Tax-free items

Oklahoma

South Carolina

Tennessee

Dates: July 26-28, 2024

Tax-free items

  • Clothing and shoes: $100 or less per item, excluding handbags, jewelry and sports gear.
  • School and art supplies: $100 or less per item.
  • Laptops, tablets and computers: $1,500 or less per item.
  • Accessories like jewelry or handbags and sporting equipment aren't exempt.
  • View the full list of items on the Tennessee Department of Revenue website.

Texas

West Virginia

Dates: Aug. 2-4, 2024

Tax-free items

  • Clothing: $125 or less per item.
  • Certain school supplies: $50 or less per item.
  • School books and instructional materials: $20 or less per item.
  • Laptop and tablets: $500 or less per item.
  • Sports equipment: $150 or less per item.
  • View the full list of items on the West Virginia State Tax Department website.

States that don't charge any sales tax ever

There are five US states that don't have a statewide sales tax. You can use the acronym NOMAD to remember them.

  • New Hampshire
  • Oregon
  • Montana
  • Alaska*
  • Delaware

*Alaska does levy local sales tax.


What is a sales tax holiday?

A sales tax holiday, also called a tax-free weekend or week, refers to a period of time when certain eligible items are exempt from sales tax. Some states hold tax-free holidays annually, and a few even host several tax-free events throughout the year. Most states that participate in tax holidays hold an event in the summer that aligns with back-to-school shopping. You'll commonly find sales taxes paused on purchases like laptops, clothing, school supplies and other accessories.

Can you save money during a tax holiday?

You can save money by avoiding sales tax during a tax holiday, particularly in states with higher state sales tax rates, like Tennessee (7%), Mississippi (7%) and Arkansas (6.5%), or in states with high limitations, like Massachusetts (purchases up to $2,500). If you spent $2,000 on a computer in Massachusetts during the sales tax exemption, that would save you $125 in sales tax.

Cities and counties may or may not exempt local sales taxes during these state tax holidays. In states with potentially high local taxes, like Alabama, you'll want to check with your city or county about local sales tax exemptions.

Despite the potential savings during sales tax holidays, you'll want to make sure you stick to a budget to avoid overspending and do your research on back-to-school deals. During sales, some stores may offer lower prices on clothing, supplies and computers than you might receive by paying full price during a tax holiday.

State sales tax holiday FAQs

Do tax-free weekends include online sales?

Yes, online purchases for state residents made during their sales tax holiday will be tax free, even through large online retailers like Amazon. Just make sure you follow your state's guidelines for qualifying items. The time zone of the seller will usually define whether the sale is within the sales tax exemption period.

What happens if I buy a qualifying item that's over the dollar limit?

Rules for sales tax holidays will vary by state, but in most states the exemption is all or nothing. If your item costs more than the limit for the sales tax exemption, you'll pay tax on the entire amount (not just the amount over the limit). 

One notable exception is In Maryland -- the first $40 spent on a backpack is tax free, regardless of its total price. If you were to spend $60 on a backpack, you'd be taxed only for $20. We recommend reviewing your state's full item list and rules to plan accordingly.

Is New Jersey holding a sales tax holiday this year?

New Jersey used to participate in tax-free weekends for back-to-school items. However, its sales tax holiday was repealed in 2024. It will not hold a tax holiday this year.

Do all cities in a state holding a tax holiday participate?

Most states require all cities and businesses therein to participate in tax-free holidays. AlabamaFlorida and Missouri don't.

Source: cnet.com

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