You can forget Christmas in July. A number of states across the country are offering sales-tax holidays primarily during the dog days of August. Seeing as state sales taxes can be as high as 7.00%, these newfangled holidays offer a great savings opportunity for back-to-school shoppers, perhaps also giving those planning to wait for sales following the start of school reason enough to move up their timeline. This is especially true since most sales-tax holidays specifically target popular back-to-school items such as clothing, footwear, electronics and sports equipment.
In the table below, you will find details about the relevant sales-tax respites. It is important to note that the values listed are “per item,” which means sales taxes are waived for each applicable item costing that amount or less. Shopping strategically with that in mind can help boost your savings, but we’ll get to that in the Tips & Tidbits section section that follows the table.
| State* | Applies To | Notable Exceptions | Dates |
|---|---|---|---|
| Alabama (4.00% tax) | – Clothing (up to $100) – Computers (up to $750) – School Supplies (up to $50) – Books (up to $30) | – Clothing accessories (e.g. belt buckles, handbags, and sunglasses) – Protective equipment (e.g. safety goggles) – Sports or recreational equipment – Furniture – Magazines, newspapers, and other periodicals – Video games of a non-educational nature – Sewing equipment and accessories | 7/17 – 7/19 |
| Arkansas (6.50% tax) | – Clothing and Footware (up to $100) – School Supplies (no limit) – Clothing Accessory or Equipment (up to $50) | – Sewing equipment and accessories – Belt buckles – Protective equipment – Sports equipment | 8/1 – 8/2 |
| Connecticut (6.35% tax) | – Clothing and Footwear (up to $100) | – Clothing or footwear that is designed for athletic or protective use – Other safety apparel – Clothing accessories (e.g. jewelry) | 8/16 – 8/22 |
| Florida (6.00% tax) | – School Supplies (up to $15) – Clothing and Footwear (up to $60) – Computers (up to $1,000) | – Some books – School supplies and clothing sold in theme parks, entertainment complexes, public lodging establishments, or airports – Rentals | 8/7 – 8/9 |
| Iowa (6.00% tax) | – Clothing and Footwear (up to $100) | – Clothing accessories – Sports equipment – Protective Equipment – Accessories – Rentals and leases | 8/7 – 8/8 |
| Maryland (6.00% tax) | – Clothing & Footwear (up to $100) – Backpack or bookbag (up to $40) | – Sports equipment – Protective equipment – Sewing materials and accessories | 8/9 – 8/15 |
| Massachusetts** (6.25% tax) | – Any personal retail item (up to $2,500) | – Gas, electricity or telecommunications services – Motor vehicles or motorboats | 8/29 - 8/30 |
| Mississippi (7.00% tax) | – Clothing & Footwear (up to $100) – School supplies (up to $100) | – Clothing accessories – Sports equipment – Protective equipment | 7/31-8/1 |
| Missouri (4.23% tax) | – Clothing (up to $100) – Computers (up to $1,500), software (up to $350), peripheral devices (up to $1,500), Graphing Calculators (up to $150) – School Supplies (up to $50) | – Clothing accessories – Sports equipment | 8/7 – 8/9 |
| New Mexico (5.13% tax) | – Clothing and footwear (up to $100) – Computers (up to $1,000) – Computer Equipment (up to $500) – School Supplies (up to $30) | – Sporting equipment – Protective equipment – Clothing accessories – Sewing or knitting materials | 8/7 – 8/9 |
| Ohio (5.75% tax) | – Clothing (up to $75) – School Supplies (up to $20) – School Instruction Material (up to $20) | – Clothing accessories – Sports equipment – Protective equipment – Sewing or knitting materials | 8/7 – 8/9 |
| Oklahoma (4.50% tax) | – Clothing and Footwear (up to $100) | – Accessories – Special athletic or protective clothing and footwear – Rentals | 8/7 – 8/9 |
| South Carolina (6.00% tax) | – Clothing and Footwear (no limit) – School Supplies (no limit) – Computers (no limit) – Other (no limit) | – Music players – Day planners – Smart phones – Furniture – Sporting equipment – Protective equipment | 8/7 – 8/9 |
| Tennessee (7.00% tax) | – Clothing (up to $200) – School Supplies (up to $200) – Computers (up to $3,000) | – Clothing accessories – Sporting equipment – Printer supplies | 7/31 – 8/1 |
| Texas (6.25% tax) | – Clothing, Footwear,Backpacks and School Supplies (up to $100) | – Rentals – Clothing accessories – Backpacks for college-age students and above – Athletic equipment – Protective equipment | 8/7 – 8/9 |
| Virginia (5.30% tax)*** | – Clothing and Footwear (up to $100) – School Supplies (up to $20) | – Clothing accessories – Sports equipment – Protective or recreational equipment | 8/7 – 8/9 |
* Alaska, Delaware, Montana, New Hampshire and Oregon do not charge a sales tax.
** Massachusetts does not have a specific back-to-school sale tax holiday, but the sales tax holiday it hosts can be used for back-to-school purchases as it applies to personal items priced under $2,500.
*** Virginia levies a mandatory, statewide, local add-on sales taxes of 1% at the state level. We include this in the tax value.
States with No Back-To-School Sales Tax Holidays in 2020
States not participating in Back-To-School Sales Tax Holidays are: Arizona, California, Colorado, District of Columbia, Georgia, Hawaii, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Michigan, Minnesota, Nebraska, Nevada, New Jersey, New York, North Carolina, North Dakota, Pennsylvania, Rhode Island, South Dakota, Utah, Vermont, Washington, West Virginia, Wisconsin and Wyoming.
Tips & Tidbits
It’s important to look into the specifics of your respective state’s sales-tax holiday because there may be certain caveats and restrictions to the aforementioned deals that could either help you develop savings strategies or wind up costing you if you aren’t in the know when you check out.
First of all, consider whether shopping in a neighboring state or town will increase your savings. Tax-exempt items clearly vary by state, and local taxes may still apply in certain municipalities.
In addition, and as alluded to earlier, the structure of these sales-tax holidays enables you to maximize savings by being cognizant of purchase limits as well as the price tag of each item that you plan to purchase. Whenever possible, buy things that are covered by the listed holiday price limits because most of these limits apply on a per-item basis. If an item is even a couple of bucks above the limit, it will wind up costing you much more than that in light of the foregone savings. This might require buying individual items when bundles are available or opting for a less prestigious brand.
Conversely, if a limit applies to everything you buy in a given shopping trip, you may want to hit the check-out lane multiple times or ask the cashier to put your items on different tabs.