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CNET
10 hours ago
- Business
- CNET
You Can Save Money on Back-to-School Shopping During Sales Tax Holidays. Is Your State Holding One?
State sales tax holidays usually run for one weekend, though some states offer longer exemptions. Tharon Green/CNET If you haven't already started buying back-to-school essentials, shopping during a sales tax holiday can offer some extra savings. These tax-free shopping events typically center on back-to-school items, offering discounts on clothing, school supplies, laptops and athletic gear. This year, 17 states are participating in a tax-free event, with two happening this weekend, and many more kicking off on at the beginning of August. Here's when they're happening and which items will be tax-free. 2025 back-to-school state sales tax holidays State State sales tax Tax-free dates Alabama 4% July 18-20 Arkansas 6.50% Aug. 2-3 Connecticut 6.35% TBD Florida 6% Aug. 1-31 Iowa 6% Aug. 1-2 Maryland 6% Aug. 9-15 Massachusetts 6.25% Aug. 9-10 Mississippi 7% July 11-13 Missouri 4.23% Aug. 1-3 New Mexico 5.13%* July 25-27 Ohio 5.75% Aug. 1-14 Oklahoma 4.50% Aug. 1-3 South Carolina 6% Aug. 1-3 Tennessee 7% July 25-27 Texas 6.25% Aug. 8-10 Virginia 4% Aug. 1-3 West Virginia 6% Aug. 1-4 State sales tax holidays in 2025 Alabama Dates: July 18-20, 2025 Tax-free items: Clothing: $100 or less per item. Computers: $750 or less per item. School supplies: $50 or less per item. Books: $30 or less per item. For the full list of items, visit the Alabama Department of Revenue. Arkansas Dates: Aug. 2-3, 2024 Tax-free items Clothing and shoes: $100 or less per item. Clothing accessories and equipment: $50 or less per item. School supplies, computers and electronics. View the full list of items on the Arkansas Department of Finance and Administration website. Connecticut Dates: TBD; rumored dates are Aug. 17-23, 2025, but are subject to change Tax-free items Clothing and shoes: $100 or less per item, excluding athletic gear and uniforms. View the full list of items on the Connecticut Department of Revenue website. Florida Dates: Aug. 1-31, 2025 Tax-free items Clothing, accessories and shoes: $100 or less per item. School supplies: $50 or less per item. Learning aids and jigsaw puzzles: $30 or less per item. Personal computers and computer accessories: $1,500 or less per item. View the full list of items on the Florida Department of Revenue website. Iowa Dates: Aug. 1-2, 2024 Tax-free items Clothing and shoes: $100 or less per item, excluding some accessories and sporting equipment. View the full list of items on the Iowa Department of Revenue website. Maryland Dates: Aug. 11-17, 2024 Tax-free items Clothing and shoes: $100 or less per item. Backpacks: Tax-free for the first $40. View the full list of items on the Comptroller of Maryland website. Massachusetts Dates: Aug. 9-10, 2025 Tax-free items All retail items purchased for personal use for $2,500 or less. Excluded items include meals, cars, boats, trucks, gasoline, cigarettes, marijuana and alcohol. View the full list of items on the Massachusetts Department of Revenue website. Mississippi Dates: July 11-13, 2025 Tax-free items Clothing and shoes: $100 or less per item. School supplies: $100 or less per item. Accessories like jewelry, wallets and watches aren't exempt. View the full list of items on the Mississippi Department of Revenue website. Missouri Dates: Aug. 1-3, 2025 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: July. 25-27, 2025 Tax-free items Clothing and shoes: $100 or less per item. Computers: $1,000 or less per item. Computer peripherals like monitors or keyboards: $500 or less per item. School supplies: $30 or less per item. View the full list of items on the New Mexico Taxation and Revenue website. Ohio Dates: Aug. 1-14, 2025 Tax-free items All retail items purchased for $500 or less. Excluded items include cars, boats, trucks, cigarettes, vapor products, marijuana, alcohol and select services. View the full list of exceptions on the Ohio Department of Taxation website. Oklahoma Dates: Aug. 1-3, 2025 Tax-free items Clothing and shoes: $100 or less per item, excluding athletic gear and uniforms. View the full list of items on the Oklahoma Tax Commission website. South Carolina Dates: Aug. 1-3, 2025 Tax-free items Clothing and shoes, including school or athletic uniforms. School supplies, art supplies and musical instruments. Certain bedding, pillows, blankets and bath supplies. Computers, headphones and flash drives. View the full list of items on the South Carolina Department of Revenue website. Tennessee Dates: July 25-27, 2025 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. View the full list of items on the Tennessee Department of Revenue website. Texas Dates: Aug. 8-10, 2025 Tax-free items Clothing and shoes: $100 or less per item. School supplies: $100 or less per item. Backpacks: $100 or less. View the full list of items on the Texas Comptroller website. Virginia Dates: Aug. 1-3, 2025 Tax-free items Qualifying clothing: $100 or less per item. Certain school supplies: $20 or less per item. View the full list of items on the Virginia State Tax Department website. West Virginia Dates: Aug. 1-4, 2025 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, you could save $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. Alabama, Florida and Missouri don't.
CNET
3 days ago
- Business
- CNET
Sales Tax Holidays: Tax-Free Back-to-School Shopping Events Kick Off This Weekend
State sales tax holidays usually run for one weekend, though some states offer longer exemptions. Tharon Green/CNET If you haven't already started buying back-to-school essentials, shopping during a sales tax holiday can offer some extra savings. These tax-free shopping events typically center on back-to-school items, offering discounts on clothing, school supplies, laptops and athletic gear. This year, 17 states are participating in a tax-free event, with one starting this weekend, and two more kicking off on July 25. Here's when they're happening and which items will be tax-free. 2025 back-to-school state sales tax holidays State State sales tax Tax-free dates Alabama 4% July 18-20 Arkansas 6.50% Aug. 2-3 Connecticut 6.35% TBD Florida 6% Aug. 1-31 Iowa 6% Aug. 1-2 Maryland 6% Aug. 9-15 Massachusetts 6.25% Aug. 9-10 Mississippi 7% July 11-13 Missouri 4.23% Aug. 1-3 New Mexico 5.13%* July 25-27 Ohio 5.75% Aug. 1-14 Oklahoma 4.50% Aug. 1-3 South Carolina 6% Aug. 1-3 Tennessee 7% July 25-27 Texas 6.25% Aug. 8-10 Virginia 4% Aug. 1-3 West Virginia 6% Aug. 1-4 State sales tax holidays in 2025 Alabama Dates: July 18-20, 2025 Tax-free items: Clothing: $100 or less per item. Computers: $750 or less per item. School supplies: $50 or less per item. Books: $30 or less per item. For the full list of items, visit the Alabama Department of Revenue. Arkansas Dates: Aug. 2-3, 2024 Tax-free items Clothing and shoes: $100 or less per item. Clothing accessories and equipment: $50 or less per item. School supplies, computers and electronics. View the full list of items on the Arkansas Department of Finance and Administration website. Connecticut Dates: TBD; rumored dates are Aug. 17-23, 2025, but are subject to change Tax-free items Clothing and shoes: $100 or less per item, excluding athletic gear and uniforms. View the full list of items on the Connecticut Department of Revenue website. Florida Dates: Aug. 1-31, 2025 Tax-free items Clothing, accessories and shoes: $100 or less per item. School supplies: $50 or less per item. Learning aids and jigsaw puzzles: $30 or less per item. Personal computers and computer accessories: $1,500 or less per item. View the full list of items on the Florida Department of Revenue website. Iowa Dates: Aug. 1-2, 2024 Tax-free items Clothing and shoes: $100 or less per item, excluding some accessories and sporting equipment. View the full list of items on the Iowa Department of Revenue website. Maryland Dates: Aug. 11-17, 2024 Tax-free items Clothing and shoes: $100 or less per item. Backpacks: Tax-free for the first $40. View the full list of items on the Comptroller of Maryland website. Massachusetts Dates: Aug. 9-10, 2025 Tax-free items All retail items purchased for personal use for $2,500 or less. Excluded items include meals, cars, boats, trucks, gasoline, cigarettes, marijuana and alcohol. View the full list of items on the Massachusetts Department of Revenue website. Mississippi Dates: July 11-13, 2025 Tax-free items Clothing and shoes: $100 or less per item. School supplies: $100 or less per item. Accessories like jewelry, wallets and watches aren't exempt. View the full list of items on the Mississippi Department of Revenue website. Missouri Dates: Aug. 1-3, 2025 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: July. 25-27, 2025 Tax-free items Clothing and shoes: $100 or less per item. Computers: $1,000 or less per item. Computer peripherals like monitors or keyboards: $500 or less per item. School supplies: $30 or less per item. View the full list of items on the New Mexico Taxation and Revenue website. Ohio Dates: Aug. 1-14, 2025 Tax-free items All retail items purchased for $500 or less. Excluded items include cars, boats, trucks, cigarettes, vapor products, marijuana, alcohol and select services. View the full list of exceptions on the Ohio Department of Taxation website. Oklahoma Dates: Aug. 1-3, 2025 Tax-free items Clothing and shoes: $100 or less per item, excluding athletic gear and uniforms. View the full list of items on the Oklahoma Tax Commission website. South Carolina Dates: Aug. 1-3, 2025 Tax-free items Clothing and shoes, including school or athletic uniforms. School supplies, art supplies and musical instruments. Certain bedding, pillows, blankets and bath supplies. Computers, headphones and flash drives. View the full list of items on the South Carolina Department of Revenue website. Tennessee Dates: July 25-27, 2025 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. View the full list of items on the Tennessee Department of Revenue website. Texas Dates: Aug. 8-10, 2025 Tax-free items Clothing and shoes: $100 or less per item. School supplies: $100 or less per item. Backpacks: $100 or less. View the full list of items on the Texas Comptroller website. Virginia Dates: Aug. 1-3, 2025 Tax-free items Qualifying clothing: $100 or less per item. Certain school supplies: $20 or less per item. View the full list of items on the Virginia State Tax Department website. West Virginia Dates: Aug. 1-4, 2025 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, you could save $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. Alabama, Florida and Missouri don't.
CNET
14-07-2025
- Business
- CNET
Mortgage Rate Predictions: Here's Why Rates Are Staying High in July
Buyers should keep an eye on the possibility of rate cuts in the next few months. Tharon Green/CNET After the rate on a 30-year fixed mortgage dipped to around 6.7% (its lowest level in months), prospective homebuyers jumped to take advantage. Before the July 4 holiday weekend, mortgage loan applications increased 9.4% week over week, per the Mortgage Bankers Association. Homeowners also seized on refinancing, with refinance activity 56% higher than the same time last year. But the reprieve didn't last long. On Monday, average 30-year fixed rates were back around 6.76%, according to Bankrate data. The culprit was last month's stronger-than-expected jobs report, released July 3, which sent bond yields up. Since the 30-year mortgage rate closely tracks the 10-year Treasury yield, rising bond yields translate to higher rates for home loans. Last month's surprisingly low unemployment rate also reduced the probability of an interest rate cut by the Federal Reserve this summer. "The headline labor market data isn't crashing and burning, which likely gives the Fed some cover to hold rates where they are," said Alex Thomas, senior analyst at John Burns Research and Consulting. While the Fed doesn't have direct control over the mortgage market, its monetary policy guides mortgage lenders and the general direction of interest rates. Experts say average 30-year fixed mortgage rates are likely to stay above 6.5% in the coming months, with a potential for small and temporary dips, not substantial drops. Prospective homebuyers are also contending with a long-standing housing shortage, high home prices and a loss of purchasing power. CNET What's driving mortgage interest rates this week? Mortgage rates, which are sensitive to investor speculation and economic data, have been affected by the Trump administration's tax cuts and tariff policies. If tariffs end up raising prices as expected, that would send an even clearer "wait and see" signal to central bank policymakers, whose primary task is keeping both inflation and unemployment in check. "Increased uncertainty about the inflation picture lessens the chances of a cut in rates by the Fed," said Keith Gumbinger, vice president at "Greater inflation would argue against cutting rates, absent any significant deterioration in labor conditions." Following signs of cooler inflation in 2024, the Fed cut interest rates three times but has held rates steady throughout 2025. A slowing job market with higher unemployment could still prompt the central bank to reduce borrowing costs this year, eventually helping mortgage rates fall. But the most recent jobs report appeared too steady on the surface, according to Odeta Kushi, deputy chief economist at First American Financial Corporation. "For the Fed, this reduces the urgency to cut rates in July. Even a September move may require more definitive evidence that the economy is cooling," Kushi said. Fewer interest rate cuts combined with the recently passed budget bill, which is expected to significantly boost government debt deficits, are likely to keep upward pressure on longer-term bond yields and mortgage rates. What's happening today's housing market? Affordability challenges have kept the housing market frozen for several years. Even as the long-standing housing shortage eases in several local markets and gives those buyers improved negotiating power, the rest remain locked out by steep home prices. The 2025 homebuying season is still on hold, said Kushi. Plus, with recession risks still on the horizon, people who are nervous about finances will be more reluctant to take on mortgage loan debt. Prospective buyers waiting for mortgage rates to drop may soon have to adjust to the "higher for longer" rate environment. While market forces are out of your control, there are ways to make buying a home slightly more affordable. Last year, nearly half of all homebuyers secured a mortgage rate below 5%, according to Zillow. Here are some proven strategies that can help you save up to 1.5% on your mortgage rate. 💰 Build your credit score. Your credit score will help determine whether you qualify for a mortgage and at what interest rate. A credit score of 740 or higher will help you qualify for a lower rate. 💰 Save for a bigger down payment. A larger down payment allows you to take out a smaller mortgage and get a lower interest rate from your lender. If you can afford it, a down payment of at least 20% will also eliminate private mortgage insurance. 💰 Shop for mortgage lenders. Comparing loan offers from multiple mortgage lenders can help you negotiate a better rate. Experts recommend getting at least two to three loan estimates from different lenders. 💰 Consider mortgage points. You can get a lower mortgage rate by buying mortgage points, with each point costing 1% of the total loan amount. One mortgage point equals a 0.25% decrease in your mortgage rate. Now Playing: 6 Ways to Reduce Your Mortgage Interest Rate by 1% or More 02:31
