Guide to US State Sales Tax Holidays

Save money with tax-free shopping events throughout the year

What Are Sales Tax Holidays?

Sales tax holidays are limited time periods when states temporarily exempt specific products from state (and sometimes local) sales taxes. These tax-free periods provide consumers with an opportunity to purchase eligible items without paying sales tax, resulting in immediate savings. First introduced in New York in 1997, sales tax holidays have since been adopted by many states as a way to stimulate economic activity and provide tax relief to consumers.

Calculate Your Tax Holiday Savings

Types of Sales Tax Holidays

Back-to-School

Exempts items like clothing, footwear, school supplies, and computers. Typically held in July or August before the school year begins.

Disaster Preparedness

Exempts emergency supplies like generators, batteries, and flashlights. Usually occurs before hurricane or severe weather seasons.

Energy Efficient

Provides tax exemptions for ENERGY STAR appliances and other energy-saving products to encourage eco-friendly purchases.

Second Amendment

Exempts firearms, ammunition, and hunting supplies in select states like Mississippi and Louisiana.

Key Benefits of Tax Holidays

Provide direct tax relief to consumers
Help families save on essential purchases
Boost local retail sales during specific periods
Increase foot traffic for brick-and-mortar retailers
Support economic activity in participating states

Economic Impact of Sales Tax Holidays

Sales tax holidays impact both consumers and retailers in various ways. While they offer immediate savings for shoppers, their economic effects are multifaceted:

Consumer Benefits

Immediate savings of 4-10% (depending on state tax rates)
Predictable shopping opportunities for planned purchases
Particularly beneficial for low and middle-income families
Savings on essential items like clothing and school supplies

Retailer Considerations

Increased customer traffic during holiday periods
Administrative costs for implementing tax exemptions
Potential for increased sales of non-exempt items
Opportunity for promotional tie-ins with tax holidays

Revenue Impact for States

According to research from the Institute on Taxation and Economic Policy, sales tax holidays will cost states and localities over $1.3 billion in lost revenue in 2024. However, proponents argue this is offset by increased economic activity and sales of non-exempt items.

2023 Revenue Impact $1.6 billion

2024 Revenue Impact $1.3 billion

State Participation Trends

The number of states offering sales tax holidays has fluctuated over time. From a peak of 19 states in 2010, participation has stabilized around 17-18 states in recent years. Some states have discontinued their holidays due to budget concerns, while others have expanded their programs with new categories and longer durations.

2025 State-by-State Sales Tax Holiday Guide

State	Holiday Type	Dates (2025)	Eligible Items	Price Restrictions
Alabama	Back-to-School	July 18-20	Clothing, computers, school supplies, books	Clothing: $100 Computers: $750 School supplies: $50 Books: $30
Alabama	Severe Weather Preparedness	February 21-23	Generators, emergency supplies	Generators: $1,000 Supplies: $60
Arkansas	Back-to-School	August 2-3	Clothing, school supplies, electronic devices	Clothing: $100 Accessories: $50 No limit on other items
Connecticut	Back-to-School	August 16-22	Clothing, footwear	Up to $300 per item
Florida	Disaster Preparedness	June 7-20 August 23-September 5	Hurricane supplies, generators	Various: $10 to $3,000
Florida	Back-to-School	July 28-August 10	School supplies, clothing, computers	School supplies: $50 Clothing: $100 Computers: $1,500
Florida	Freedom Month	July 1-31	Admissions to performances, recreational supplies	$25-$50
Florida	Tool Time	August 31-September 6	Tools and equipment	Various
Iowa	Back-to-School	August 1-2	Clothing, footwear	Less than $100
Maryland	Back-to-School	August 9-15	Clothing, footwear, backpacks	Clothing: $100 Backpacks: first $40
Maryland	Energy Savings	February 14-16	Energy Star products, solar water heaters	No restrictions
Massachusetts	General Sales	TBA (August)	Most personal tangible property	$2,500 or less
Mississippi	Back-to-School	July 11-13	Clothing, footwear, school supplies	Less than $100
Mississippi	Second Amendment	TBA (August/September)	Firearms, ammunition, hunting supplies	No restrictions
Missouri	Back-to-School	August 1-3	Clothing, computers, school supplies	Clothing: $100 Computers: $1,500 Software: $350 Supplies: $50
Missouri	Energy Star	April 19-25	Energy Star appliances	$1,500 or less
New Mexico	Back-to-School	August 1-3	Clothing, school supplies, computers	Clothing: $100 Computers: $1,000 Computer equip: $500 Supplies: $30
Ohio	Back-to-School	August 1-3	Most tangible personal property	Less than $500
Oklahoma	Back-to-School	August 1-3	Clothing, footwear	Less than $100
South Carolina	Back-to-School	August 1-3	Clothing, school supplies, computers, bed/bath items	No restrictions
Tennessee	Back-to-School	July 25-27	Clothing, school supplies, computers	Clothing: $100 Computers: $1,500 Supplies: $100
Texas	Back-to-School	August 8-10	Clothing, footwear, school supplies, backpacks	Less than $100
Texas	Energy Star	May 24-26	Energy Star appliances	Air conditioners: $6,000 Refrigerators: $2,000 Other items: no limit
Texas	Emergency Prep	April 26-28	Emergency supplies, generators	Generators: $3,000 Emergency devices: $300 Supplies: $75
Texas	Water-Efficient	May 24-26	Water-conserving products	No restrictions
Virginia	Combined	August 1-3	School supplies, clothing, emergency prep items, Energy Star products	Various restrictions by category
West Virginia	Back-to-School	August 1-4	Clothing, school supplies, computers, sports equipment	Clothing: $125 Computers: $500 School supplies: $50 Sports equip: $150

Note about Local Participation

In some states, local governments can choose whether to participate in the sales tax holiday. Always check with your local retailers or tax authority to confirm if both state and local sales taxes will be waived during the holiday period.

Tips for Maximizing Your Tax Holiday Savings

Before the Holiday

Research your state's exact dates and exemption rules
Create a shopping list of qualifying items you need
Check price thresholds for different categories
Sign up for retailer emails for additional promotions
Compare prices ahead of time to ensure retailers haven't raised prices

During the Holiday

Shop early for the best selection of items
Keep receipts and verify tax wasn't charged
Combine manufacturer coupons with tax savings
Consider buying online if your state allows it
Split larger purchases to stay under price thresholds

Common Tax Holiday Misconceptions

Misconception: Everything is tax-free

Reality: Only specific categories of items qualify, and many have price restrictions. Always check your state's guidelines for the exact items covered.

Misconception: You can use rain checks later

Reality: Most states require items to be purchased during the actual holiday period. Rain checks for later purchases typically don't qualify for the exemption.

Misconception: Layaway purchases always qualify

Reality: Policies on layaway vary by state. Some require final payment during the holiday, while others count the initial deposit date.

Misconception: Online purchases never qualify

Reality: Many states allow tax-free online purchases as long as the order is placed and paid for during the holiday period, even if delivery occurs later.

Impact on Retailers

While sales tax holidays create shopping opportunities for consumers, they present both benefits and challenges for retailers:

Benefits for Retailers

Increased foot traffic during typically slower shopping periods
Opportunity to attract new customers
Potential for additional sales of non-exempt items
Marketing hook for promotional campaigns

Challenges for Retailers

Reprogramming point-of-sale systems for temporary exemptions
Training staff on complex exemption rules
Increased staffing needs during holiday periods
Inventory management challenges for high-demand items

Data based on 2024 survey of 500 small and midsize US retailers

Retailer Compliance Requirements

In most states, retailer participation in sales tax holidays is mandatory. Businesses must:

Accurately identify which items qualify for exemption
Properly program their point-of-sale systems
Train staff on the specific rules for their state
Keep detailed records of exempt sales
Handle returns and exchanges according to state guidelines

Debates Around Sales Tax Holidays

Proponents Argue

Provide tangible tax relief for families, especially for back-to-school purchases
Stimulate local economic activity during specific periods
Help retailers increase sales and customer traffic
Raise awareness about emergency preparedness and energy efficiency
Create goodwill between state governments and taxpayers

Critics Argue

Primarily shift the timing of purchases rather than generate new sales
Create compliance costs and complexity for retailers
Reduce state tax revenue that could fund essential services
May not significantly benefit low-income families
Some retailers raise prices during holidays, reducing consumer benefits

Future Trends in Sales Tax Holidays

Sales tax holidays continue to evolve as states experiment with different approaches. Here are some emerging trends to watch:

Expanded Categories

States are adding new product categories to existing holidays. Florida's "Freedom Month" and "Tool Time" holidays represent this diversification trend.

Extended Durations

Some states are extending holidays from traditional weekends to full weeks or even months, providing more opportunities for consumers to benefit.

Digital Integration

Improved point-of-sale technology is making it easier for retailers to implement tax holidays for both in-store and online purchases.

Calculate Your Potential Savings

Use our free Sales Tax Holiday Calculator to estimate how much you can save during your state's tax-free periods.

Access the Tax Holiday Calculator

Our calculator allows you to input your planned purchases by category, apply your state's specific tax rates and exemption rules, and see your potential savings instantly.

Conclusion

Sales tax holidays provide tangible benefits for consumers while creating both opportunities and challenges for retailers. By understanding the specific rules in your state and planning accordingly, you can maximize your savings during these tax-free periods.

For the most current information on sales tax holidays in your state, including exact dates, eligible items, and price restrictions, consult your state's department of revenue website or use our US State Sales Tax Holiday Calculator.

Whether you're shopping for back-to-school supplies, preparing for severe weather, or looking to purchase energy-efficient appliances, sales tax holidays offer an opportunity to save money while supporting local businesses in your community.

Additional Resources

Disclaimer: The content provided on this webpage is for informational purposes only and is not intended to be a substitute for professional advice. While we strive to ensure the accuracy and timeliness of the information presented here, the details may change over time or vary in different jurisdictions. Therefore, we do not guarantee the completeness, reliability, or absolute accuracy of this information. The information on this page should not be used as a basis for making legal, financial, or any other key decisions. We strongly advise consulting with a qualified professional or expert in the relevant field for specific advice, guidance, or services. By using this webpage, you acknowledge that the information is offered “as is” and that we are not liable for any errors, omissions, or inaccuracies in the content, nor for any actions taken based on the information provided. We shall not be held liable for any direct, indirect, incidental, consequential, or punitive damages arising out of your access to, use of, or reliance on any content on this page.

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