Latest news with #sales tax holiday
CBS News
a day ago
- Business
- CBS News
Florida's month-long school tax "holiday" kicks off this week
Praised by retailers, derided as a gimmick by critics, Florida on Friday will start a month-long sales-tax "holiday" for back-to-school shoppers, along with eliminating sales taxes on other types of items. While Florida has held back-to-school tax holidays of varying lengths in most years, lawmakers this spring approved making it an every-August occurrence. Shoppers will be able to avoid paying sales taxes on clothes, shoes and backpacks that cost $100 or less, school supplies that cost $50 or less, learning aids that cost $30 or less and personal computers that cost $1,500 or less. The Florida Retail Federation said parents of kindergarten through 12th-grade students are projected to spend an average of $858 on clothes and supplies nationally. For families with college students, the average increases to $1,326. Electronics makes up the largest portion of the expenses, followed by clothes for K-12 students. "This is always a very popular holiday for retailers," Lorena Holley, general counsel and vice president of the Florida Retail Federation, said. "They run additional promotions and always expect large crowds." The Washington, D.C.-based Institute on Taxation and Economic Policy argues the discount periods have minimal benefit for working families. "Wealthier taxpayers are often best positioned to benefit from a temporary exemption since they have more flexibility to shift the timing of their purchases to take advantage of the tax break --- an option that isn't available to families living paycheck to paycheck," Miles Trinidad, a state analyst for the non-profit organization, wrote July 17. The business-friendly Washington, D.C.-based Tax Foundation said last week that making the back-to-school holiday a recurring month-long event, rather than requiring annual approval, gives retailers more certainty about the length and the items that will be included. But the foundation also raised concerns about such holidays, saying targeted items are offered when demand is highest, "such as back-to-school products in August and hurricane preparedness supplies before storm seasons." "As a result, most of these revenue losses are associated with retail transactions that would have occurred without the added incentive," wrote Katherine Loughead, a foundation senior policy analyst and research manager, and foundation intern Brayden Myers. "The prevalence of sales tax holidays is indicative of deeper structural weaknesses in state tax codes: the existence of a sales tax holiday is a tacit admission that the sales tax is overly burdensome throughout the rest of the year." The back-to-school holiday was included in a broader tax package (HB 7031) that the Legislature passed last month after a lengthy standoff between House and Senate leaders about a budget and tax cuts. House leaders initially wanted an across-the-board cut in the state's sales-tax rate and opposed holding tax holidays. Holley credited lobbying by the retail federation and other groups for making sure "we maintained the sales tax holiday." "We were confident that in the end, we would get where we landed," Holley said. The tax package, also starting Friday, will create permanent sales-tax exemptions on a variety of items, such as batteries, portable generators, tarps, gas cans, life jackets, bicycle helmets, sunscreen and insect repellent. Previously, such items were included in tax holidays held at the start of the hurricane season for disaster-preparedness supplies and in the summer for recreational activities. First created in 1998, back-to-school holidays have been held annually since 2010. They were not held in 2008 and 2009 as the state struggled with budget problems during the recession. While tax holidays have been popular with shoppers and retailers, House Speaker Daniel Perez, R-Miami, didn't embrace them this year. When the legislative session opened on March 4, he directed House budget leaders to "dive into the budget and find real savings in recurring revenue." "We spend every new dime of recurring revenue while congratulating ourselves for giving easy-to-fund non-recurring sales tax holidays," Perez said at the time. But Senate President Ben Albritton, R-Wauchula, contended the holidays "are popular and highly utilized." "Creating a permanent tax holiday every August on clothing, shoes, school supplies, and personal computers expands our current holiday and creates a consistency that benefits both consumers and retailers," Albritton said as the tax package was signed by Gov. Ron DeSantis on June 30. The package does not include the House's proposal to cut the overall sales-tax rate. The largest part of the tax package will eliminate a tax on commercial leases, a change long sought by business groups. The back-to-school holiday is projected to save shoppers $217 million a year. The package also includes a sales-tax holiday from Sept. 8 through Dec. 31 on firearms, ammunition and such things as fishing and camping supplies.
CNET
4 days ago
- Business
- CNET
Back-to-School Sales Tax Holidays 2025: Tennessee's Tax-Free Weekend Kicks Off Today, and 9 More Start Next Week
State sales tax holidays usually run for one weekend, though some states offer longer exemptions. Zooey Liao/CNET Back-to-school shopping season is in full swing, and if you're feeling the strain on your wallet, timing your purchases with a sales tax holiday can help you snag 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 Tennessee's three day event kicking off today and nine more starting up next week. 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
22-07-2025
- Business
- CNET
Tax-Free Weekends Are Happening in 17 States This Summer. Here's Where and When
State sales tax holidays usually run for one weekend, though some states offer longer exemptions. Tharon Green/CNET If you haven't already started on your back-to-school shopping, timing your purchases with a sales tax holiday can help you snag 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
21-07-2025
- 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
18-07-2025
- 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.
