During the back-to-school season, millions of Americans gear up for one of the busiest shopping weekends. Several states temporarily suspend sales taxes on eligible purchases, allowing shoppers to save on school supplies, clothing, and electronics.
Participating States
States like Missouri, Ohio, Oklahoma, South Carolina, Texas, and Virginia offer tax-free weekends starting this weekend, according to the Federation of Tax Administrators. Iowa participates in a shorter two-day event. Florida and Illinois also have active tax-relief periods.
Why It Matters
These tax-free weekends provide financial relief, especially for families managing the cost of living. With inflation impacting budgets, these periods can help reduce expenses, particularly in states with high combined sales tax rates.
Key Dates
Most tax-free events commence from Friday, August 7, to Sunday, August 9, except Iowa’s event ending August 8. Dates and qualifying items vary by state.
Insight from Experts
Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, notes that states use tax-free days to ease back-to-school costs. Families should note the date and item purchase limits, as inflation may affect these thresholds.
Active Tax-Relief Periods
Illinois offers reduced sales tax rather than a full exemption. Michael Ryan, founder of MichaelRyanMoney.com, advises families to prioritize sale prices over tax breaks for optimal savings.
Tax-Free Categories
Eligible purchases vary by state, generally covering:
- Clothing and footwear under specific price limits
- School supplies
- Backpacks
- Computers and accessories (in select states)
- Instructional materials and learning aids (in certain areas)
State-Specific Details
Texas exempts clothing, footwear, school supplies, and backpacks under $100. Virginia includes certain emergency preparation products. South Carolina offers exemptions for clothing, supplies, and computers.
Shopping Tips
Ryan advises making a school list before shopping, and comparing sale prices. Avoid impulse buying just because taxes are waived. Savings come when buying planned items.
Non-Qualifying Purchases
Some items remain taxed during these periods:
- Items above state price limits
- Jewelry and accessories (in some areas)
- Athletic equipment
- Business-related purchases
- Items outside designated categories
Online Purchases
Tax-free savings typically apply to online purchases shipped to participating states during the holiday period. Retailers apply exemptions based on the customer’s location.
Next Steps
Shoppers in participating states have limited time to enjoy tax breaks before exemptions expire at the weekend’s end.