Every year, certain states hold tax holidays. During the events, they waive the sales tax on specific purchases, allowing shoppers to potentially save a substantial amount of money. A few of the sales tax holidays even align with the start of the school year, helping parents save a significant amount of money on school-related necessities.
What Is a Sales Tax Holiday?
A sales tax holiday is a special shopping event. On designated days, a state does not require retailers to collect state sales tax on specific purchase categories.
By buying eligible items during a sales tax holiday in 2019, you can reduce your total spending. The amount of savings you will experience varies depending on the state tax rate, though it can be substantial. As a result, sales tax holidays are major shopping events, especially for families who work with a tight budget.
However, some states do cap the cost of each item in order to qualify, based on its category. For example, you may be limited to $100 in per clothing if you want the tax-free benefit. Once you cross that threshold, the item is not eligible for the tax-free holiday.
Additionally, state sales tax holidays do not necessarily mean you will not pay any sales tax. Local sales tax may still apply. However, the total savings is still significant even if that is the case.
States With Sales Tax Holidays
Only 16 states have tax holidays. They are:
- Alabama
- Arkansas
- Connecticut
- Iowa
- Maryland
- Massachusetts
- Mississippi
- Missouri
- New Mexico
- Ohio
- Oklahoma
- South Carolina
- Tennessee
- Texas
- Virginia
- Wisconsin
The remaining states do not hold tax-free shopping events at any point during the year. However, it is also important to note that some states do not have sales tax. This means all purchases there remain tax-free. Here is a list of states that do not have sales tax all year-round:
- Alaska
- Delaware
- Montana
- New Hampshire
- Oregon
Other states exclude certain categories from sales tax as well. For example, clothing is always tax-free in these states:
- Minnesota
- New Jersey
- New York
- Pennsylvania
- Rhode Island
Sales Tax Holiday Chart
The sales tax holiday schedules vary depending on the state. Here is a chart of the 2019 sales tax holiday events:
Alabama |
| In Alabama, the Annual Severe Weather Holiday is from February 22 through February 24, 2019. During the tax-free holiday, severe weather preparedness items, valuing no more than $60 each, are exempt from sales tax. Generators and power cords with price tags at or below $1,000 are also tax-free. |
| Alabama also has a Back to School Sales Tax Holiday from July 19 to July 21, 2019. During the event, the following items are tax-free, within the limits described. below: |
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Arkansas |
| From August 3 to August 4, 2019, the Annual Back to School Holiday makes various school-related items tax-free. Here are the limits: |
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Connecticut |
| Connecticut holds their Annual Back to School Holiday between August 18 and August 24, 2019. Clothing and shoes with price tags below $100 qualify. |
Iowa |
| The first Friday and Saturday in August are Iowa’s Annual Sales Tax Holiday. In 2019, that will be on August 2 and August 3. Clothing and shows with sales prices below $100 will be tax-free. |
Maryland |
| Maryland holds two sales tax holidays each year. Between February 16 and 18, 2019, energy star products (like appliances) are tax-free. |
| Between August 11 and August 17, 2019, clothing and shoes below $100 are not subject to sales tax as well as the first $40 or any backpack or bookbag. |
Massachusetts |
| Massachusetts typically has the largest sales tax holiday, expected between August 10 and August 11, 2019. Nearly all tangible personal property with sales prices at or below $2,500 qualify. There are a few exceptions, including, but not limited to, telecommunications services, tobacco or marijuana products, motor vehicles, motorboats, meals, and gasoline. |
Mississippi |
| Mississippi is another state with two tax holidays. On July 26 and July 27, 2019, the state holds their Annual Clothing Sales Tax Holiday. Clothing and shoes below $100 are tax-free. |
| Then, on August 30 and September 1, 2019, during the Second Amendment Sales Tax Holiday, a variety of hunting supplies, including certain firearms and ammunition, are not subject to sales tax. |
Missouri |
| In preparation for the school year, Missouri holds an annual sales tax holiday. The following items are not subject to sales tax: |
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New Mexico |
| August 2 through August 4 is New Mexico’s sales tax holiday. The following items are exempt from sales tax: |
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Ohio |
| Ohio will hold a tax-free event between August 2 and August 4, 2019. The following items are eligible: |
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Oklahoma |
| During Oklahoma’s sales tax holiday, scheduled for August 2 through August 4, 2019, clothing and shoes sold for under $100 are not subject to sales tax. |
South Carolina |
| The South Carolina annual sales tax holiday is set for August 2 through August 4, 2019. It features one of the largest lists of eligible goods. The following items qualify: |
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Tennessee |
| Between July 26 and July 28, Tennessee holds their tax-free event. Here is a list of eligible items: |
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Texas |
| Texas has more tax-free holidays than any other state, typically hosting three each year. The first, set for April 27 through April 29, 2019, covers: |
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| Then, between May 25 and May 27, 2019, you can get these items tax-free as long as they are Energy Star rated, up to the limits: |
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| Finally, from August 9 and August 11, 2019, the back to school event makes the following tax-free: |
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Virginia |
| From August 2 through August 4, Virginia’s sales tax holiday makes a slew of items tax-free. Here is a quick overview of the qualifying items and their limits: |
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Wisconsin |
| Wisconsin’s five-day tax holiday will occur from August 1 through August 5, 2019. The following items are eligible: |
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It’s important to note that some states, like Florida, have held tax-free weekends in the past. However, they have not officially announced or approved an event for 2019 as of this writing.
Additionally, some of the information above is based on sales tax holiday patterns and not official announcements, as they have not been made as of this writing. However, since the states traditionally follow a specific schedule, the dates are expected to remain accurate.
Do you have big plans for the 2019 tax holidays? Let us know in the comments below.
Read More:
- Online Shoppers Need to Know About These New Tax Changes
- Why Your State Taxes Might Go Up
- Coupons Are Taxable – Why Do We Have to Pay Sales Tax on Them?
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