How To Maximize Savings During A Tax Free Holiday
Sophisticated Standards: Don’t have kids or not in school? Anyone can take advantage of TAX-FREE holidays!
Tax-free events for back-to-school can help you save a ton of money. Most states that offer a tax-free weekend or event were designed to help consumers purchase certain items. For this time of the year specifically, there is a large influx of parents and students buying school related expenses. However, what a lot of people don’t know is that you don’t have to have children or be enrolled in school to take advantage of the savings.
Tax free holidays were designed to foster growth and encourage economic activity. Unfortunately, not every state offers the elimination of sales tax and not every product is eligible either. Some states like New Jersey actually sell clothing items tax-free year round, while others states offer one weekend a year. The timing will typically depend on when the school year starts in each state but you can also check out https://www.taxadmin.org/2022-sales-tax-holiday for a complete list of states offering tax breaks on qualifying items needed outside of the back to school season, too.
STATES OFFERING TAX-FREE DATES IN JULY 2022:
Alabama - July 15-17 no sales tax summary:
School supplies less than $50, including binders, book bags, lunch boxes, crayons and erasers
Books under $30
Computers under $750, plus printers and printer supplies
Clothing under $100 per article of clothing
Additional Notes: Accessories like watches, jewelry, handbags, cosmetics, sports equipment and protective equipment (like face shields and protective gloves for sport) are not included in the tax-free benefit. Counties and municipalities may opt out.
Florida - July 25-August 7 no sales tax summary:
Clothing, footwear and certain accessories that are less than $100 per item
Certain school supplies selling for $50 or less per item, including binders, lunch boxes and composition books
Computers that cost up to $1,500 and certain computer-related accessories, such as laptops, tablets, zip drives and keyboards
Additional Notes: Items such as batteries, cases for electronic devices and smartphones are not eligible for the tax-free benefit.
Mississippi - July 29-30 no sales tax summary:
Clothing and footwear at $100 or less per item, including pants, shirts, belts and dresses
School supplies at $100 or less per item, including backpacks, art supplies, calculators and composition books
Additional Notes: Items like sports equipment and accessories (jewelry, headbands, briefcases etc.) are not eligible for the tax-free benefit.
Tennessee - July 29-31 no sales tax summary:
Clothing that costs $200 or less per item, including shirts, pants and shoes
School supplies priced at $200 or less
Art supplies priced at $200 or less per item, including glazes, clay and paints
Computers and other electronics priced at $3,000 or less per item; tablets and smartphones are included
Additional Notes: Printer supplies and sports equipment are not eligible for the tax-free benefit.
Detailed List of Items & Eligibility: https://www.tn.gov/content/dam/tn/revenue/documents/taxes/sales/salestaxholiday/STH_Alpha_List_2015_exempt.pdf
STATES OFFERING TAX-FREE DATES IN AUGUST 2022:
Arkansas - August 6-7 no sales tax summary:
Clothing and footwear items priced under $100 per item
Accessories under $50, including briefcases, cosmetics, handbags and jewelry
Select school supplies, including book bags, calculators, crayons and notebooks
School art supplies, including paints, paintbrushes and clay
School instructional materials, including reference books and textbooks
Additional Notes: Protection equipment “designed as protection of the wearer against injury or disease” (i.e. face shields and protective gloves) are not considered clothing and therefore do not qualify for the tax-free benefit.
Connecticut - August 21-27 no sales tax summary:
Clothing and footwear that cost less than $100 per item
Additional Notes: Sporting equipment, clothing accessories, and protective wear are not included in the tax-free benefit.
Florida - July 25-August 7 no sales tax summary:
Clothing, footwear and certain accessories that are less than $100 per item
Certain school supplies selling for $50 or less per item, including binders, lunch boxes and composition books
Computers that cost up to $1,500 and certain computer-related accessories, such as laptops, tablets, zip drives and keyboards
Additional Notes: Items such as batteries, cases for electronic devices and smartphones are not eligible for the tax-free benefit.
Iowa - August 5-6 no sales tax summary:
Clothing or footwear selling for less than $100 per item
Additional Notes: Backpacks, handbags, and athletic uniforms are not eligible for the tax-free benefit.
Maryland - August 14-20 no sales tax summary:
Clothing and footwear priced at $100 or less
The first $40 of a backpack purchase is tax-free
Additional Notes: Accessories are not eligible for the tax-free benefit.
Massachusetts - August 13-14 no sales tax summary:
All retail goods that cost $2,500 or less per item are tax-free
Additional Notes: Items not eligible for the tax-free benefit include motor vehicles, motorboats, meals, telecommunication services, gas, steam, electricity, tobacco products, marijuana and marijuana products.
Missouri - August 5-7 no sales tax summary:
Any article of clothing priced at $100 or less, including apparel intended to be on or around the human body, like disposable diapers
School supplies priced at $50 per purchase, including textbooks, notebooks, writing instruments, art supplies and backpacks
Graphing calculators priced at $150 or less
Computer software priced at $350 or less
Personal computers and devices to use with the computer (including printers, scanners, etc.) priced at less than $1,500 per item
Additional Notes: Local jurisdictions can elect to not participate in the tax-free holiday, so be sure to check with the store before making any purchases.
New Mexico - August 5-7 no sales tax summary:
Clothing or shoes less than $100 per item
Computers, laptops, tablets or notebook computers priced at $1,000 or less
Computer hardware priced at $500 or less
School supplies priced at $30 or less per item
Bookbags, backpacks, maps, globes priced at less than $100 per item
Calculators priced at less than $200
Additional Notes: Sports equipment and uniforms are not included in the tax-free benefit.
Ohio - August 5-7 no sales tax summary:
Clothing items priced at $75 per item or less, including uniforms, shoes and athletic uniforms
School supplies or instructional material priced at $20 per item or less, including binders, book bags and calculators
School instructional material priced at $20 per item or less, including reference books, maps and textbooks
Additional Notes: Protective equipment such as face shields and protective gloves are not eligible for the tax-free benefit.
Oklahoma - August 5-7 no sales tax summary:
Clothing and footwear priced at less than $100 per item
Additional Notes: Accessories, special clothing for athletic use, and rental clothing are not eligible for the tax-free benefit.
South Carolina - August 5-7 no sales tax summary:
Clothing and footwear, excluding rentals
Computers and accessories like monitors, keyboards and printers School supplies, including bookbags, headphones, earbuds and lunch boxes
Select home goods, including mattress pads and toppers, bedding and towels
Additional Notes: Office supplies, sports equipment and smartphones are not eligible for the tax-free benefit. There is no limit on how much each item eligible for the tax-free benefit can cost.
Texas - August 5-7 no sales tax summary:
Clothing and footwear priced at less than $100 per item
School supplies priced at less than $100 per item, including backpacks, composition books and crayons
Additional Notes: Athletic clothing and equipment are not eligible for the tax-free benefit.
Virginia - August 5-7 no sales tax summary:
Clothing and footwear priced at less than $100 per item
School supplies priced at less than $20 per item, including backpacks, composition books and crayons
Additional Notes: Athletic clothing and equipment are not eligible for the tax-free benefit.
West Virginia - August 5-8 no sales tax summary:
Clothing and footwear priced at less than $125 per item
School supplies priced at less than $20 per item, including backpacks, composition books and crayons
Sports equipment priced at less than $150
Computers & tablets priced at less than $500
Additional Notes: Accessories, briefcases, cosmetics and hair notions and are not eligible for the tax-free benefit.
STATES OFFERING TAX-REDUCTION DATES IN AUGUST 2022:
Illinois - August 5-14 state sales tax 5% reduction summary:
Clothing and footwear priced at less than $125 per item
School supplies are no subject to the $125 threshold
Detailed List of Items & Eligibility: https://www2.illinois.gov/rev/research/publications/bulletins/Documents/2022/FY%202022-24_N0522.pdf
STATES WITH TAX-FREE OFFERS YEAR-ROUND FOR 2022:
Alaska - no state sales tax (local taxes may still apply)
Delaware - no sales or local taxes
New Hampshire - no sales or local taxes
Oregon - no sales or local taxes
Montana - no state sales tax (local taxes may still apply)
The incentives, qualifying items and limits vary by state, and some states - such as Alabama and Missouri - allow counties or municipalities to opt out of participating in a tax-free period. It’s important to check out your state’s website for a thorough list of restrictions and exclusions. Shortcuts can be found by clicking here or you can also visit your state’s Department of Revenue or Comptroller website for detailed information.
Be strategic shopping on a tax-free weekend
Retail items keep getting more expensive each year, so there’s a good reason to take advantage of no sales tax if your state offers it. The back-to-school shopping season is the second most expensive time of year for families with kids attending school. Prior to inflation, it was reported by experts that K-12 parents can expect to spend an average of $850 each year on back-to-school shopping and college families can expect to spend $1,200. However, we have some tips you can use to save money during your tax-holidays.
Make a list of items you need and limited your wants to 1-3 reasonably priced items
Set a budget before you leave the house or start browsing online and stick to it
Start with the most expensive items first (like electronics) to ensure you get those items tax-free where limits apply
Maximize your savings by matching up the tax event with businesses offering extra specials and look for coupons. A lot of retailers offer discounts when signing up for their emails, too
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