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Sales Tax Holiday 2018: Is Your State on the List?

Definitely check to see if your state makes this list.

The summer months mean summer savings – especially when you factor in your state’s sales tax holiday. Not many shoppers are aware of this hidden holiday but it can save you hundreds of dollars in sales tax especially on major purchases.

This handy guide will breakdown 2018 deals for each state that has a sales tax holiday. Mark your calendars, get your party favors out, and get ready to shop!

Alabama. Back to School Sales Tax Holiday: July 20 – 22, 2018

According to Alabama state law, “The Back-To-School Sales Tax Holiday begins at 12:01 a.m. on the third Friday in July, and ends at twelve midnight on the following Sunday.” The tax holiday is applicable to the following purchases, however, the portion that is exempt from sales tax is capped at specific dollar amounts per item (the big savings this year is on computers):

  • Clothing – $100
  • Computers – $750
  • School supplies – $50
  • Books – $30

Arkansas. Back to School Sales Tax Holiday: August 4 – 5, 2018

The state of Arkansas will hold its sales tax holiday beginning at 12:01 a.m. on Saturday August 4, 2018, and ending at 11:59 p.m. on Sunday August 5, 2018. This holiday allows shoppers the opportunity to purchase $100 worth of certain School Supplies, School Art Supplies, School Instructional Materials, and clothing free of state and local sales or use tax.

Connecticut. Back to School Sales Tax Holiday: August 19 – 25, 2018

Connecticut’s sales tax holiday allows shoppers to purchase individual items of clothing and footwear priced under $100 without having to pay sales tax. For items costing $100 or more, sales tax is calculated on the full purchase price.

Florida. Back to School Sales Tax Holiday: August 3 – 5, 2018

During Florida’s sales tax holiday, qualifying items will be exempt from tax including:

  • Certain school supplies selling for $15 or less per item;
  • And clothing, footwear, and certain accessories selling for $60 or less per item.

Iowa. Annual Sales Tax Holiday: August 3 – 4, 2018

In Iowa, from August 3rd through the 4th, no sales tax, including local option sales tax, will be collected on sales of an article of clothing or footwear having a selling price less than $100. The exemption does not apply in any way to the price of an item selling for $100 or more. This is an annual event on the first Friday and Saturday of August.

Louisiana. Annual Sales Tax Holiday: August 4 – 5, 2018

During Louisiana’s sales tax holiday, purchases of most tangible personal property are subject to a reduced state sales tax rate of only three percent. This sales tax exemption applies to the first $2,500 of the sale price or cost price of any consumer purchase of an eligible item.

The exemption applies statewide to all consumer purchases of tangible personal property provided that the property is not for use in a business, trade, or profession. Additionally, the state sales tax exemption does not apply to vehicles subject to license and title.

Maryland. Annual Tax Free Week: August 12 – 18, 2018

The Shop Maryland Tax-Free Week for 2018 is Sunday, August 12 – Saturday, August 18. Qualifying apparel and footwear $100 or less, per item, are exempt from the state sales tax.

Mississippi. Annual Sales Tax Holiday: July 27 – 28, 2018

According to Mississippi Sales Tax Holiday passed in 2009, the sale of articles of clothing or footwear under $100 is not subject to sales tax during the sales tax holiday.

Missouri. Back to School Sales Tax Holiday: August 3 – 5, 2018

By Missouri state law, the sales tax holiday begins on the first Friday in August and continues through the following Sunday. Certain back-to-school purchases, such as clothing, school supplies, computers, and other items, are exempt from sales tax for this time period only. Sales tax exemption is limited to:

  • Clothing – any article having a taxable value of $100 or less
  • School supplies – not to exceed $50 per purchase
  • Computer software – taxable value of $350 or less
  • Personal computers – not to exceed $1,500
  • Computer peripheral devices – not to exceed $1,500
  • Graphing Calculators not to exceed $150

New Mexico. Back to School Sales Tax Holiday: August 3 – 5, 2018

New Mexico’s annual tax holiday starts on the first Friday of the month in August and ends the following Sunday at midnight. Items that fall under the exemption are as follows:

  • Clothing/shoes – priced at $100 or less per unit
  • Desktop/laptop – priced at $100 or less
  • Computer hardware – not to exceed $500
  • School supplies – must be under $30 per unit

Ohio. Back to School Sales Tax Holiday: August 3 – 5, 2018

Ohio’s annual tax holiday starts on the first Friday of the month in August and ends the following Sunday at midnight. Items that fall under the exemption are as follows:

  • An item of clothing priced at $75 or less,
  • An item of school supplies priced at $20 or less; and
  • An item of school instructional material priced at $20 or less.

Oklahoma. Annual Sales Tax Holiday: August 3 – 5, 2018

Oklahoma’s annual sales tax holiday will begin at 12:01 am on Friday, August 3, 2018 and end at twelve midnight on Sunday, August 5, 2018. Clothing and shoe purchases valued at $100 or less are exempt from sales tax for this time period only. Qualified items are exempt from state, city, county, and local municipality sales taxes.

South Carolina. Annual Sales Tax Holiday: August 3 – 5, 2018

During South Carolina’s annual Sales Tax Holiday, a variety of back-to-school essentials are exempt from the state’s 6% Sales Tax and any applicable local taxes. Tax free items range from clothing, accessories, and shoes, to school supplies, backpacks, and computers. For a detailed list of exempt items visit South Carolina’s Department of Revenue.

Tennessee. Annual Sales Tax Holiday: July 27 – 29, 2018

The state of Tennessee’s annual sales tax holiday is held every year, beginning at 12:01 a.m. on the last Friday in July and ending at 11:59 p.m. the following Sunday night. During this weekend, certain goods may be purchased tax-free.

  • Clothing:  $100 or Less
  • School Supplies and School Art Supplies: $100 or Less
  • Computers:  $1,500 or Less

Texas. Annual Sales Tax Holiday: August 10 – 12, 2018

For Texas, all sales of qualifying items made during the holiday period qualify for a sales tax exemption, including items sold online, by telephone and by mail. Shoppers can even use layaway plans to take advantage of the sales tax holiday. The exemption is applied to the following categories at $100 per qualifying item.

  • Clothing and Footwear
  • Backpacks
  • School Supplies

Virginia. Annual Sales Tax Holiday: August 3 – 5, 2018

During Virginia’s sales tax holiday, you can buy qualifying school supplies, clothing, footwear, hurricane and emergency preparedness items, and Energy Star™ and WaterSense™ products without paying sales tax.

  • Qualified school supplies – $20 or less per item
  • Qualified clothing and footwear – $100 or less per item
  • Portable generators – $1,000 or less per item
  • Gas-powered chainsaws – $350 or less per item
  • Chainsaw accessories – $60 or less per item
  • Other specified hurricane preparedness items – $60 or less per item
  • Qualifying Energy Star™ or WaterSense™ products purchased for noncommercial home or personal use – $2,500 or less per item

Wisconsin. Annual Sales Tax Holiday: August 1 – 5, 2018

During Wisconsin’s sales tax holiday, the following items are not taxable:

  • Clothing, if the sales price of any single item is $75 or less.
  • A computer purchased by a consumer for the consumer’s personal use, if the sales price of the computer is $750 or less.
  • School computer supplies purchased by the consumer for the consumer’s personal use, if the sales price of any single item is $250 or less.
  • School supplies, if the sales price of any single item is $75 or less.

Photo Copyright: <a href='https://www.123rf.com/profile_tarikvision'>tarikvision / 123RF Stock Photo

Jeremias Ramos is a CPA working at a nationally recognized full-service accounting, tax, and consulting firm with offices conveniently located throughout the Northeast. Jeremias specializes in tax and business consulting with focus areas in real estate, professional service providers, medical practitioners, and eCommerce businesses.

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