Shoppers in 10 states should file this away: This weekend, you can pick up clothes and school supplies tax-free.
Sales tax holidays kick off Friday in nine states – Florida, Iowa, Missouri, New Mexico, Ohio, Oklahoma, South Carolina, Texas and Virginia – and Maryland’s tax holiday begins Sunday.
Alabama, Arkansas, Mississippi and Tennessee already held their tax holidays. Maryland and Connecticut will offer tax breaks later in August.
The back-to-school shopping season, the second-biggest period for retailers, behind the holidays, usually kicks off in mid-July and peaks in mid-August. This year, it’s off to a slow start amid the COVID-19 pandemic. Experts predict the shopping season will peak in late August and spill into most of September.
The purchases parents are making are different than in previous years. Clothing is less of a priority, replaced by electronics, face masks and other protective equipment.
Computers are tax-free this weekend in four states: Florida, Missouri, New Mexico and South Carolina under different thresholds.
According to the National Retail Federation, parents with children in elementary school through high school plan to spend an average of $789.49 per family, up from $696.70 last year. That spending is expected to total $33.9 billion, up from $26.2 billion last year, breaking the record of $30.3 billion set in 2012.
The trade group predicts that college students and their families will spend a total of $67.7 billion, up from $54.5 billion last year.
“By any measure, this is an unprecedented year with great uncertainty, including how students will get their education this fall whether they are in kindergarten or college,” NRF president and CEO Matthew Shay said in a statement. “Most parents don’t know whether their children will be sitting in a classroom or in front of a computer in the dining room, or a combination of the two.”
In five states, tax breaks are year-round. Alaska, Delaware, Montana, New Hampshire and Oregon don’t have a sales tax, according to the Tax Foundation. Most clothing also is tax-free year-round in some states, including Massachusetts, Minnesota, New Jersey, New York, Pennsylvania and Rhode Island.
Tax-free shopping 2020
Not every town and county will participate in the sales tax holidays, nor will every item be tax-free. Online shopping also is exempt from tax during the days. For some states, local taxes still apply.
Florida sales tax holiday
Dates: Aug. 7-9
What’s tax free:
- Clothing, footwear and accessories, including face masks: $60 or less
- School supplies: $15 or less
- Computers and accessories: $1,000 or less per item
Full list: www.floridarevenue.com/backtoschool
Iowa sales tax holiday
Dates: Aug. 7-8
What’s tax-free: Clothing and footwear, less than $100
Full list: https://tax.iowa.gov/iowas-annual-sales-tax-holiday
Maryland tax-free week
Dates: Aug. 9-15
What’s tax-free:
- Clothing and footwear: $100 or less
- Backpacks: The first $40 is tax-exempt
Full list:www.marylandtaxes.gov
Missouri sales tax holiday
Dates: Aug. 7-9
What’s tax-free:
- Clothing: Up to $100
- School supplies: Not to exceed $50 per purchase
- Personal computers: Up to $1,500
- Computer software: Up to $350
- Graphing calculators: Up to $150
Full list: https://dor.mo.gov/business/sales/taxholiday/school/
New Mexico tax holiday
Dates: Aug. 7-9
What’s tax-free:
- Clothing and footwear: Less than $100
- Computers: $1,000 or less
- Computer-related items: Up to $500
- School supplies: Less than $30
Full list: www.tax.newmexico.gov
Ohio sales tax holiday
Dates: Aug. 7-9
What’s tax-free:
- Clothing: $75 or less
- School supplies and instructional materials: $20 or less
Full list: https://tax.ohio.gov/wps/portal/gov/tax/home/news/sales-tax-holiday
Oklahoma sales tax holiday
Dates: Aug. 7-9
What’s tax-free: Clothing and footwear, less than $100
Full list: www.ok.gov/tax
South Carolina sales tax holiday
Dates: Aug. 7-9
What’s tax-free:
- Clothing: No limit
- School supplies: No limit
- Computers, computer parts and accessories, printers, ink: No limit
- Books and musical instruments: Tax-free if “used for school assignments.”
- Bed and bath: No limit, includes blankets, bed spreads, bed linens, towels, etc.
Full list: www.dor.sc.gov/taxfreeweekend
Texas sales tax holiday
Dates: Aug. 7-9
What’s tax-free:
- Clothing and footwear: Less than $100
- School supplies and backpacks: Less than $100
Full list: https://comptroller.texas.gov/taxes/publications/98-490/
Virginia sales tax holiday
Dates: Aug. 7-9
What’s tax-free:
- Clothing and footwear: $100 or less
- School supplies: $20 or less
- Hurricane and emergency preparedness products: Portable generators up to $1,000; gas-powered chainsaws $350 or less; other specified hurricane preparedness items, $60 or less per item.
- Energy Star and WaterSense products: $2,500 or less per item
Full list: www.tax.virginia.gov/virginia-sales-tax-holiday
Coming tax holidays
Two more states have tax holidays, later in August.
Connecticut tax-free week
Dates: Aug. 16-22
What’s tax-free: Clothing and footwear, less than $100
Full list: www.ct.gov/DRS
Massachusetts sales tax holiday
Dates: Aug. 29-30
What’s tax-free: Almost everything that costs up to $2,500. In Massachusetts, there is no sales tax on clothes less than $175, year round.
More information: www.mass.gov
