Back-to-school buying just got cheaper with this tax-free weekend guide where states cut sales tax on certain items just in time. While 16 states are participating in the tax-free days you also have Alaska, Delaware, Montana, New Hampshire and Oregon that never charge sales tax. Be aware that most of the tax holidays begin at 12:01 a.m. and end at midnight. Is your state lacking this tax-free day? Then it may be time to take a road trip. Here’s some free gas for all of the driving from store to store.
Maximize Rewards! Another tip for back-to-school shopping is to make sure you have a proper credit card to maximize your savings. From initial bonuses worth $600+ to 2% cashback on all purchases, there are plenty of great credit card deals available to parents this back-to-school season. You can even get 5% back on restaurant purchases while dining and shopping with these cards.
On top of a cashback credit card why not sign up for Drop and iBotta. Two amazing apps that are paying huge and you can double dip all of these programs. iBotta, for instance, will allow you to send in your receipt into the app if you shopped at Target to claim money back. With Drop, you simply add your credit cards and it knows where you shopped and will give you cash back from places such as Starbucks, Old Navy, Nike, Aerie, and other retailers. You then redeem the cashback for gift cards. If you use this link for Drop you’ll get $5 towards your first gift card.
What is a sales tax holiday?
A sales tax holiday is a period of time during which many states remove sales tax on certain types of items. Often, the tax-free benefits are limited to a single weekend, but sometimes there are much longer terms.
Sales tax holidays typically restrict eligible purchases by criteria such as product and price. For example, you might be able to purchase computer models that cost up to $1,000 tax-free, but not ones that cost more.
When is the sales tax holiday or tax-free weekend in my state?
Sales tax holidays vary by location — and not every state has one. In some cases, the state sales tax may be zero during the holiday, but stores might still have to collect a city or local sales tax. Keep in mind that some states already don’t collect a state sales tax. Local governments (the city or county, for example) can still levy tax in those states, though.
Here’s a look at the states with sales tax holidays in 2023 and the items that will be tax-free, according to the Federation of Tax Administrator.
2023 Sales Tax Holidays by State
State |
Dates |
Eligible merchandise / Maximum cost per Item |
---|---|---|
Alabama |
Feb. 24-26 |
Hurricane-preparedness generators / $1,000 Weather-preparedness supplies / $60 |
July 21-23 |
Clothing / $100 Computers / $750 School supplies / $50 Books / $30 |
|
Arkansas |
Aug. 5-6 |
Clothing / $100 School supplies / No maximum |
Connecticut |
Aug. 20-26 |
Clothing and footwear / $100 |
Florida |
July 1, 2023-June 30, 2024 |
Energy Star appliances / $1,500-$3,000 |
July 24, 2023-Aug. 6, 2023, Jan. 1, 2024-Jan. 14, 2024 |
Back to school school supplies – $50 clothing – $100 computers – $1,500 |
|
Sept. 2-8 |
Tool time, including: Work gloves / $25 Flashlights and bags / $50 Toolboxes / $75 Test equipment / $100 |
|
Iowa |
Aug. 4-5 |
Clothing / $100 |
Maryland |
Feb. 18-20 |
Energy Star products / No maximum |
Aug. 13-19 |
Clothing and footwear / $100 |
|
Massachusetts |
Aug. 12-13 |
All tangible personal property / $2,500 (except vehicles, food, alcohol, gas, certain utilities, tobacco, marijuana) |
Mississippi |
July 28-29 |
Clothing and footwear / $100 |
Aug. 25-27 |
Firearms, ammunition, hunting supplies / No maximum |
|
Missouri |
April 19-25 |
Energy Star products / $1,500 |
Aug. 4-6 |
Clothing / $100 Computers / $1,500 School supplies / $50 |
|
Nevada |
Oct. 27-29 |
Purchases by National Guard members / No maximum |
New Jersey |
Aug. 26-Sept. 4 |
School and art supplies / No maximum Instruction materials / No maximum Computers / $3,000 |
New Mexico |
Aug. 4-6 |
Clothing / $100 Computers / $1,000 Computer equipment / $500 School supplies / $30 |
Ohio |
Aug. 4-6 |
Clothing / $75 School supplies / $20 |
Oklahoma |
Aug. 4-6 |
Clothing and Shoes / $100 – Note in Oklahoma the politicians have made it where they do TAX school supplies so basic school supplies aren’t included. |
South Carolina |
Aug. 4-6 |
Items include computers, school supplies, clothing / No maximum |
Tennessee |
July 1, 2022-June 30, 2023 |
Gun safes and safety devices / No maximum |
July 28-30 |
Clothing / $100 School supplies / $100 Computers / $1,500 |
|
Texas |
April 22-24 |
Generators / $3,000 Storm devices / $300 Preparedness items / $75 |
May 27-29 |
Energy Star products / No maximum Air conditioners / $6,000 Other / $2,000 |
|
Aug. 11-13 |
Clothing, backpacks, school supplies / $100 |
|
West Virginia |
Aug. 4-7 |
Clothing / $125 School supplies / $20 Sports equipment / $150 Computer or tablet / $500 |
Source: Federation of Tax Administrators |
How to save big with a sales tax holiday
Here are some tips for leveraging sales tax holidays to save money:
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For back-to-school savings, reserve major purchases like laptops for the tax-free periods in late July or August. For weather-preparedness savings, try to time purchases with tax holidays sprinkled throughout the year.
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Keep an eye on the price tags. Typically, only items priced below the limit qualify for the tax-free treatment. When back-to-school shopping for new outfits, for example, if the limit is $100 on clothing then, as long as each piece of clothing in your cart is priced below $100, you should save on sales tax for those items. But if the limit on shoes is also $100 and you’re buying a pair priced at $125, you might have to pay sales tax on them.
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Check with the state for exceptions. Before you start shopping, head to your state’s taxation and revenue website and find out if there are unusual exceptions. Previously in New Mexico, for example, clothing was part of its tax-free weekend, but sports uniforms and bathing suits didn’t count, which meant they were still taxable.
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Shop around. Eliminating sales tax shouldn’t be your only means of saving money. Check out local kids consignment shops for clothes and shoes not covered by the tax-free holiday. You might also try using websites like Google Shopping or apps such as Flipp to search for products by name and compare their prices at multiple merchants. Doing research ahead of time for bigger purchases, like Energy Star appliances or hurricane-preparedness items, is also key.
Remember to Stick to a Budget! It’s hard to avoid overspending if you don’t have both a shopping list and a budget. Before heading to these retail or outlet stores, make a list of what you need and do a quick search to see how much each item costs. This will help you make an overall back-to-school budget and decide how to allocate the funds. It’s too bad Amazon is not able to get in on the B2S offers but you can get Boxed tax free year long.