State

Sales Tax & Compliance

Sales tax holidays exempt statewide taxes, but localities in some states may still charge local taxes on items that qualify for the state’s tax holiday.

Aug. 03, 2023

From the Kiplinger Consumer News Service, via TNS.

This list includes every back-to-school sales tax holiday this summer, from July 27, 2023, through the end of August. Rules for tax-free shopping can vary from state to state. So, just because something is tax-exempt in one state doesn’t mean it will be in another. Knowing the rules before you shop can help you save the most money.

[Sales tax rates are based on data from the Tax Foundation and are accurate as of January 2023. The average combined sales tax rate listed for each tax holiday is the average of the statewide sales tax rate and local tax rates within the state.]

Sales tax holidays exempt statewide taxes, but localities in some states may still charge local taxes on items that qualify for the state’s tax holiday. To find out if local taxes apply in your area, you can check with your state for more information.

Online orders typically qualify for sales tax holidays, but the orders must be paid for during the tax holiday period, and the items must be shipped to an address within the state. Exclusions may apply.

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Dates of Tax Holiday: August 5 through August 6

State Sales Tax Rate: 6.5%

Average Combined Sales Tax Rate: 9.46%

Arkansas has one of the highest sales tax rates in the U.S., but shoppers can purchase some items tax-free during the state’s two-day back-to-school sales tax holiday. Arkansas’ tax-free weekend includes certain clothing, electronics and school supplies.

While the state has not released a list of specific eligible items this year, here are some items Arkansas typically exempts.

For more information about the Arkansas back-to-school sales tax holiday, shoppers can visit the Department of Finance and Administration’s (DFA) website.

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Dates of Tax Holiday: August 20 through August 26

State Sales Tax Rate: 6.35%

Average Combined Sales Tax Rate: 6.35%

Connecticut’s tax-free week starts on the third Sunday of August. That falls on August 20 this year. While back-to-school sales tax holidays only run for two days in many states, Connecticut’s tax holiday lasts an entire week. During this time, shoppers can purchase clothing and footwear items tax-free, as long as each item costs less than $100.

Items that typically qualify as tax-exempt

For more information about this year’s tax-free week, Connecticut shoppers can visit the state’s Department of Revenue Services website.

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Dates of Tax Holiday: July 24 through August 6

State Sales Tax Rate: 6%

Average Combined Sales Tax Rate: 7.02%

Florida’s 2023 back-to-school tax holiday lasts for two weeks. That makes it the longest tax holiday on this list. Florida shoppers can purchase certain clothing items, school supplies, learning aids and electronics tax-free during the two-week period. Here are some of the items that qualify in 2023.

For more information about Florida’s back-to-school sales tax holiday, shoppers can visit the Florida Department of Revenue website.

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Dates of Tax Holiday: August 4 through August 5

State Sales Tax Rate: 6%

Average Combined Sales Tax Rate: 6.94%

Iowa holds its annual back-to-school sales tax holiday the first Friday and Saturday of August. That’s August 4 and 5 this year. During the event, shoppers can purchase clothing and footwear tax-free. Unlike in some other states, Iowa’s tax holiday exempts all local sales taxes in addition to the state’s 6% statewide tax rate. Some items do not qualify as clothing for the purpose of the tax holiday.

For more information about Iowa’s sales tax holiday, shoppers can visit the Iowa Department of Revenue website.

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Dates of Tax Holiday: August 13 through August 19

State Sales Tax Rate: 6%

Average Combined Sales Tax Rate: 6%

Maryland’s tax-free week allows shoppers to buy eligible clothing and footwear items without paying the state’s 6% sales tax rate. Here are some things you should know about the Maryland sales tax holiday before you shop.

More information about Maryland’s tax-free week can be found at the Comptroller of Maryland website.

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Dates of Tax Holiday: August 12 through August 13

State Sales Tax Rate: 6.25%

Average Combined Sales Tax Rate: 6.25%

Many states limit individual sales tax holiday purchases to $100, but Massachusetts exempts most items $2,500 or less during its back-to-school tax holiday. The Massachusetts tax-free weekend isn’t limited to clothing, footwear and school supplies. Rather than list items that qualify for the tax-exempt period, the state lists items that do not.

If you would like more information about the Massachusetts sales tax holiday, you can visit the event’s FAQ page.

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Dates of Tax Holiday: July 28 through July 29

State Sales Tax Rate: 7%

Average Combined Sales Tax Rate: 7.07%

The Mississippi sales tax holiday exempts eligible items from sales tax. To qualify, each individual item must cost less than $100. Electronics do not qualify for the Mississippi back-to-school sales tax holiday, but the following items do.

You can find more information about the Mississippi sales tax holiday on the state’s Department of Revenue website.

Dates of Tax Holiday: August 4 through August 6

State Sales Tax Rate: 4.225%

Average Combined Sales Tax Rate: 8.33%

Missouri’s tax-free weekend exempts some clothing items, school supplies and electronics from sales tax, but individual items must not exceed a specific dollar amount. And the dollar amount for each category is different.

Shoppers can find more information about the 2023 Missouri sales tax holiday on the state’s Department of Revenue website.

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Dates of Tax Holiday: August 26 through September 4

State Sales Tax Rate: 6.625%

Average Combined Sales Tax Rate: 6.6%

The New Jersey sales tax holiday exempts some computers, school supplies, electronics and sport equipment. Computers must cost less than $3,000 to qualify for the tax holiday, and computer supplies, such as printers, must not exceed $1,000. Here are some other specific items that are included in New Jersey’s tax-free week.

The above is not an exhaustive list of qualifying items. Shoppers can visit the New Jersey Division of Taxation’s sales tax holiday FAQ page for more information.

Dates of Tax Holiday: August 4 through August 6

State Sales Tax Rate: 5%

Average Combined Sales Tax Rate: 7.72%

New Mexico’s annual gross receipts tax holiday is a three-day event that allows shoppers to purchase eligible clothing, footwear, computers and school supplies tax-free. But there are some exceptions that New Mexicans should know about before they shop.

Shoppers can visit the New Mexico Taxation and Revenue Department website for more information.

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Dates of Tax Holiday: August 4 through August 6

State Sales Tax Rate: 5.75%

Average Combined Sales Tax Rate: 7.24%

Ohio doesn’t exempt computers during its sales tax holiday like some states do, but shoppers can still purchase plenty of other items tax-free. Eligible clothing items that do not exceed $100 are exempt during the Ohio sales tax holiday. School supply and instructional items must be priced at $20 or less to qualify. Specific examples of qualifying items are listed below.

For a full list of qualifying items, Ohio shoppers can visit the state’s Department of Taxation website.

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Dates of Tax Holiday: August 4 through August 6

State Sales Tax Rate: 4.5%

Average Combined Sales Tax Rate: 8.98%

Oklahoma’s sales tax holiday exempts eligible clothing and footwear items from the sales tax. However, each item must be priced at less than $100 to qualify. Some items don’t qualify for the Oklahoma tax-free weekend.

For more information about Oklahoma’s back-to-school tax holiday, shoppers can visit the Oklahoma Tax Commission’s tax help center page.

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Dates of Tax Holiday: August 4 through August 6

State Sales Tax Rate: 6%

Average Combined Sales Tax Rate: 7.43%

During the South Carolina tax-free weekend, shoppers won’t pay sales tax on eligible clothing items, school supplies or computers. South Carolina even exempts some items that most other states do not.

South Carolina shoppers can find detailed information about the 2023 tax holiday on the state’s Department of Revenue website.

Dates of Tax Holiday: July 28 through July 30

State Sales Tax Rate: 7%

Average Combined Sales Tax Rate: 9.55%

Tennessee shoppers won’t pay sales tax on eligible items purchased during the tax-free weekend. To qualify for the sales tax holiday, each piece of clothing must cost $100 or less. School supply items must also be priced at $100 or less. However, computers that cost up to $1,500 qualify for the tax holiday. Some items are not included in tax-free weekend.

Tennessee shoppers can visit the TN Department of Revenue website for more information about the 2023 back-to-school tax holiday.

States That Still Tax Groceries

Dates of Tax Holiday: August 11 through August 13

State Sales Tax Rate: 6.25%

Average Combined Sales Tax Rate: 8.2%

Shoppers can purchase eligible clothing, footwear and school supplies tax-free during the annual Texas back-to-school sales tax holiday. Items must cost less than $100 to qualify as tax-exempt. Below are examples of items that are not taxable during the tax-free weekend.

Additional items are included in the Texas sales tax holiday. Shoppers can visit the Texas Comptroller website for more information.

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Dates of Tax Holiday: August 4 through August 7

State Sales Tax Rate: 6%

Average Combined Sales Tax Rate: 6.55%

The West Virginia back-to-school sales tax holiday is a four-day event that allows shoppers to purchase eligible clothing, school supplies, sports equipment and computers tax-free. However, there are price limitations you should be aware of before you start shopping.

For more information, shoppers can visit the sales tax holiday questions and answers page on the West Virginia Tax Division’s website.

All contents copyright 2023 The Kiplinger Washington Editors, Inc. Distributed by Tribune Content Agency, LLC

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