If you’re looking to mitigate back-to-school shopping costs, you might want to consider taking advantage of the”tax-free weekend” offered in many states. Let’s take a look at how these weekends work, which states offer them, and what type of purchases are eligible.
Most states charge sales tax, which is a tax levied on items you purchase. The more you spend, the more you’ll pay in taxes.
To help struggling consumers, many states offer a tax-free weekend during which they will not charge sales tax. Tax-free weekends are usually held right before school starts so that parents and students can save on clothes, laptops, school supplies, and other necessities.
The tax holiday applies to both in-store and online purchases. If you purchase an item online, the tax discount will still apply even if the item is delivered after the holiday is over.
Every state has its own limits on what you can buy tax-free. For example, most states have a limit of $100 for each clothing item. Therefore, if you buy a $125 winter coat, you’ll still have to pay taxes on it.
However, in most states, adults can also save money during the tax-free weekend because the discount doesn’t just apply to children’s clothing and accessory items. It also applies to electronics and office supplies, too. Teachers and childcare professionals can also buy classroom supplies during this time.
You don’t have to be a resident of the state to benefit from the tax holiday. If you live near a state with a tax-free weekend, you can still take advantage of the discount.
Before you hit the stores, you should ensure that the tax-free discount doesn’t lead you to buy more than you can actually afford. Write out what you truly need to buy beforehand. Remember, you’re not saving money if you end up spending more than you would have otherwise.
Alabama
Dates: July 19-21
Tax rate: 4%
Eligible items:
- School supplies $50 or less per item
- Clothing $100 or less per item
- Computers $750 or less
Arkansas
Dates: Aug. 3-4
Tax rate: 6.5%
Eligible items:
- Clothing items $100 or less
- Clothing accessories $50 or less per item
- Certain school supplies, including pencils, notebooks, binders and more
Connecticut
Dates: Aug. 18-24
Tax rate: 6.35%
Eligible items:
- Clothing or shoes $100 or less per item
Florida
Dates: July 29-Aug. 11
Tax rate: 6%
Eligible items:
- School supplies $50 or less per item
- Clothes or accessories $100 or less
- Learning aids or jigsaw puzzles $30 or less
- Computers & related accessories for personal use $1,500 or less
Iowa
Dates: Aug. 2-3
Tax rate: 6%
Eligible items:
- Clothes and accessories $100 or less per item
Maryland
Dates: Aug. 11-17
Tax rate: 6%
Eligible items:
- Clothing and shoes $100 or less per item
- The first $40 of a backpack
Massachusetts
Dates: Aug. 10-11
Tax rate: 6.25%
Eligible items:
- Certain retail goods for personal use worth $2,500 or less
- Massachusetts always exempts the first $175 of a clothing item
Mississippi
Dates: July 12-14
Tax rate: 7%
Eligible items:
- Clothing, shoes, or school supplies $100 or less per item
Missouri
Dates: Aug. 2-4
Tax rate: 4.225%
Eligible items:
- Clothes $100 or less
- School supplies $50 or less per purchase
- Computers $1,500 or less
- Software $350 or less
- Graphing calculators $150 or less
New Jersey
Dates: Aug. 24-Sept. 2
Tax rate: 6.625%
Eligible items:
- Clothes and shoes
- School supplies
- Certain computers under $3,000
- School computer supplies under $1,000
- Instructional materials
- Some sports and recreation equipment
New Mexico
Dates: Aug. 2-4
Tax rate: 5.125%
Eligible items:
- Clothing or shoes $100 or less per item
- Computers or tablets $1,000 or less
- Computer hardware $500 or less
- School supplies $30 or less per item
Ohio
Dates: Aug. 2-4
Tax rate: 5.75%
Eligible items:
- Clothes $75 or less
- School supplies and instructional materials $20 or less
Oklahoma
Dates: Aug. 2-4
Tax rate: 4.5%
Eligible items:
- Clothing or shoes $100 or less per item
South Carolina
Dates: Aug. 2-4
Tax rate: 6%
Eligible items:
- School supplies, clothes, and computers
Tennessee
Dates: July 26-28
Tax rate: 7%
Eligible items:
- Clothing $100 or less per item
- School and art supplies $100 or less per item
- Computers for personal use $1,500 or less
Texas
Dates: Aug. 9-11
Tax rate: 6.25%
Eligible items:
- Clothing, shoes, school supplies and backpacks $100 or less
West Virginia
Dates: Aug. 2-5
Tax Rate: 6%
Eligible Items:
- Clothing of $125 or less
- Laptop and tablet computers of $500 or less
- School supplies of $50 or less
- Sports equipment of $150 or less
NO SALES TAX HOLIDAY: Alaska, Arizona, California, Colorado, Delaware, Georgia, Hawaii, Idaho, Illinois, Indiana, Kansas, Kentucky, Maine, Michigan, Minnesota, Montana, Nebraska, Nevada, New Hampshire, New York, North Carolina, North Dakota, Oregon, Pennsylvania, Rhode Island, South Dakota, Utah, Vermont, Virginia, Washington, Wisconsin, and Wyoming.
