It’s almost back-to-school time and for many Americans, that means a sales-tax holiday. This year, 17 states are suspending taxes on certain purchases for at least a couple of days, and in some cases for an entire week.
“States tend to do it because consumers like it,” says Kay Bell, a tax analyst with Bankrate.com. “And from a shopping standpoint, shoppers always like to get a bargain and it’s icing on top when it comes out of the tax man’s pocket.”
The holiday can be a hassle for retailers because they have to reset their systems to account for the items that are not taxable for those days, Bell says. But that inconvenience is made up for with the additional traffic into stores and shoppers buying more than just tax-free items.
Related: Americans Will Spend 8.9 Billion Hours Doing Taxes in 2016
Of course, every day is a sales-tax holiday in Alaska, Montana, New Hampshire, Delaware and Oregon, the five states that don’t have a sales tax all year long.
But there’s bad news for Massachusetts residents. The state isn’t holding a tax-free holiday this year, the first time since 2009, because it’s suffering from a cash crunch. The state reportedly loses about $25 million in sales tax revenue every year due to the holiday.
To get the most out of your state’s sales tax holiday, check the list below to find out when it occurs. Some start on a Friday and end on Saturday, while others last through the entire weekend. Make sure to know what items are tax-free and make a list accordingly, says Bell. Then, stick to it.
1. Alabama
When: Friday, Aug. 5 to Sunday, Aug. 7
Books: No tax on $30 or less, per book
School supplies: No tax on $50 or less, per item
Clothes: No tax on $100 or less, per item
Computers and software: No tax on a single purchase of $750 or less
(Cities and counties can opt out or participate on a limited basis.)
2. Arkansas
When: Saturday, Aug. 6 to Sunday, Aug. 7
Clothes: No tax on $100 or less, per article of clothing
Accessories: No tax on $50 or less, per item
School supplies: No limit
3. Connecticut
When: Sunday, Aug. 21 to Saturday, Aug. 27
Clothes and shoes: No tax on $100 or less, per item
Related: The Best and Worst States for Taxes in 2016
4. Florida
When: Friday, Aug. 5 to Sunday, Aug. 7
School supplies: No tax on $15 or less, per item
Clothes, shoes and accessories: No tax on $60 or less, per item
5. Georgia
When: Saturday, July 30 to Sunday, July 31
School supplies: No tax on $20 or less, per item
Clothes and shoes: No tax on $100 or less, per item
Computers and related accessories: No tax on $1,000 or less, per item (does not apply to video games and other gaming devices)
6. Iowa
When: Friday, Aug. 5 to Saturday, Aug. 6
Clothes and shoes: No tax on $100 or less, per item
7. Louisiana
When: Friday, Aug. 5 to Saturday, Aug. 6
Most tangible personal property: Shoppers pay 3 percent tax, rather than the usual 5 percent state sales tax, on items priced $2,500 or less.
8. Maryland
When: Sunday, Aug. 14 to Saturday, Aug. 20
Clothes and shoes: No tax on $100 or less, per item
Related: Do Millionaires Really Move Away When Their Taxes Go Up?
9. Mississippi
When: Friday, July 29 to Saturday, July 30
Clothes and shoes: No tax on less than $100, per item
(The city of Heidelberg is not participating in this year’s tax holiday.)
10. Missouri
When: Friday, Aug. 5 to Sunday, Aug. 7
School supplies: No tax on $50 or less, per purchase
Clothes: No tax on $100 or less, per item
Computer software: No tax up to $350
Personal computers and related devices: No tax up to $1,500
Graphing calculators: No tax up to $150
(Cities and towns can opt out.)
11. New Mexico
When: Friday, Aug. 5 to Sunday, Aug. 7
School supplies: No tax up to $30 per item on notebooks, paper, pens, pencils, crayons, art supplies, staples, staplers, scissors and rulers. No tax up to $100 per item on backpacks, maps and globes. No tax up to $200 per item on hand-held calculators.
Clothes, shoes and accessories: No tax on $100 or less, per item
Computer-related devices: No tax up to $500
Computers: No tax up to $1,000
12. Ohio
When: Friday, Aug. 5 to Sunday, Aug. 7
Clothes: No tax on $175 or less, per item
School supplies and school instructional materials: No tax on $20 or less, per item
13. Oklahoma
When: Friday, Aug. 5 to Sunday, Aug. 7
Clothes and shoes: No tax on $100 or less, per item
(This includes items ordered via mail, email, online or telephone and paid for on the holiday.)
14. Tennessee
When: Friday, July 29 to Sunday, July 31
Clothes and shoes: No tax on $100 or less, per item
School supplies: No tax on $100 or less, per item
Computers and tablets: No tax on $1,500 or less, per item
(Eligible back-ordered items are still tax-free.)
15. Texas
When: Friday, Aug. 5 to Sunday, Aug. 7
Clothes and shoes: No tax on less than $100, per item
Backpacks: No tax on less than $100, per item
School supplies: No tax on less than $100, per item
16. South Carolina
When: Friday, Aug. 5 to Sunday, Aug. 7
No max price limit on: clothes, accessories (not including jewelry and watches), shoes, school supplies, computers, printers and printer supplies, computer software, bed linens and bath accessories.
17. Virginia
When: Friday, Aug. 5 to Sunday, Aug. 7
School supplies: No tax on $20 or less, per item
Clothes and shoes: No tax on $100 or less, per item
Energy Star and WaterSense products: No tax on $2,500 or less, per item
Hurricane preparedness items: No tax on $1,000 or less, per item
Gas-powered chainsaws: No tax on $350 or less, per item
Chainsaw accessories: No tax on $60 or less, per item
Other eligible items: No tax on $60 or less, per item
