Sales tax holidays are special time periods during which certain states in the United States offer tax exemptions on specific items. These tax-free holidays are designed to encourage consumer spending and provide financial relief to shoppers, especially during back-to-school and hurricane preparedness seasons.
During these holidays, shoppers can enjoy exemptions from sales tax on items such as clothing, back-to-school supplies, computers, energy-efficient products, disaster preparedness supplies, and more, depending on the state’s regulations.
Sales tax holidays are eagerly anticipated by consumers as they provide an opportunity to make purchases without the burden of additional taxes, ultimately promoting economic growth and benefiting both shoppers and businesses alike.
Are you looking to shop smart and save on sales taxes? Take advantage of tax-free holidays in various US states! Here’s a summary of tax-free holidays, their duration, eligible items, and 2023 dates:
- Days: 3
- Items Included/Max Cost: Hurricane preparedness generators – $1,000, supplies – $60
- 2023 Dates: February 24-26
- clothing – $100
computers – $750
school supplies – $50
books – $30 - 2023 Dates: July 21-23
- Days: 2
- Items Included/Max Cost: Clothing – $100, school supplies
- 2023 Dates: August 5-6
- Days: 7
- Items Included/Max Cost: Clothing and footwear – $100
- 2023 Dates: August 20-26
- Days: 99 (Freedom Summer)
- Items Included/Max Cost: Admissions to performances, recreational supplies – $25 to $500
- 2023 Dates: May 29-September 4
- Days: 1 year
- Items Included: Diapers & children’s clothes
- 2023 Dates: July 1, 2022 – June 30, 2023
- Days: 1 year
- Items Included: Energy star products – $1,500 to $3,000
- 2023 Dates: July 1, 2022 – June 30, 2024
- Days: 2 years
- Items Included: Hurricane hardened doors & windows
- 2023 Dates: July 1, 2022 – June 30, 2024
- Days: 14
- Items Included/Max Cost: Disaster preparedness items – $20 to $1,000
- 2023 Dates: May 27-June 9, Aug. 26-Sept. 8
- Days: 1 year
- Items Included: Energy-Star Gas ranges and cooktops
- 2023 Dates: July 1, 2023 – June 30, 2024
- Days: 14
- Items Included/Max Cost: School supplies – $50, clothing – $100, computers – $1,500
- 2023 Dates: July 24-August 6
- Days: 7
- Items Included/Max Cost: Work gloves – $25, flashlights & bags – $50, toolboxes – $75, test equipment – $100, more
- 2023 Dates: September 2-8
- Days: 2
- Items Included/Max Cost: Clothing – $100
- 2023 Dates: August 4-5
- Days: 3
- Items Included: Energy star products
- 2023 Dates: February 18-20
- Days: 7
- Items Included/Max Cost: Clothing & footwear – $100
- 2023 Dates: August 13-19
- Days: 2
- Items Included/Max Cost: All TPP – $2,500
- 2023 Dates: TBD
- Days: 2
- Items Included/Max Cost: Clothing & footwear – $100
- 2023 Dates: July 28-29
- Days: 3
- Items Included: Firearms, ammunition, and hunting supplies
- 2023 Dates: August 25-27
- Days: 7
- Items Included: Energy star products – $1,500
- 2023 Dates: April 19-25
- Days: 3
- Items Included/Max Cost: Clothing – $100, computers – $1,500, school supplies – $50
- 2023 Dates: August 4-6
- Days: 3
- Items Included: Purchases by National Guard Members
- 2023 Dates: October 27-29 (Nevada Day)
- Days: 10
- Items Included: School/art supplies, instruction materials, computers – $3,000
- 2023 Dates: August 26-September 4
- Days: 3
- Items Included/Max Cost: Clothing – $100, computers – $1,000, computer equipment – $500, school supplies – $30
- 2023 Dates: August 4-6
- Days: 3
- Items Included/Max Cost: Clothing – $75, school supplies – $20
- 2023 Dates: August 4-6
- Days: 3
- Items Included/Max Cost: Clothing – $100
- 2023 Dates: August 4-6
- Days: 3
- Items Included: Clothing, school supplies, computers, other
- 2023 Dates: August 4-6
- Days: 92
- Items Included: Food and food ingredients
- 2023 Dates: August 1-October 31
- Days: 3
- Items Included/Max Cost: Clothing – $100, school supplies – $100, computers – $1,500
- 2023 Dates: July 28-30
- Days: 1 year
- Items Included: Gun safes and safety devices
- 2023 Dates: July 1, 2022 – June 30, 2023
- Days: 3
- Items Included/Max Cost: Generators – $3,000, storm devices – $300, preparedness items – $75
- 2023 Dates: April 22-24
- Days: 3
- Items Included: Energy star products, air conditioners – $6,000, other – $2,000
- 2023 Dates: May 27-29
- Days: 3
- Items Included/Max Cost: Clothing, backpacks and school supplies – $100
- 2023 Dates: August 11-13
- Days: 4
- Items Included/Max Cost: Clothing – $125, school supplies – $20, sports equipment – $150, computer-tablet – $500
- 2023 Dates: August 4-7
Which states do not have tax free holidays?
- Alaska
- Arizona
- California
- Colorado
- Delaware
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Kansas
- Kentucky
- Louisiana
- Maine
- Michigan
- Minnesota
- Montana
- Nebraska
- New Hampshire
- New York
- North Carolina
- North Dakota
- Oregon
- Pennsylvania
- Rhode Island
- South Dakota
- Utah
- Vermont
- Virginia
- Washington
- Washington, D.C.
- Wisconsin
- Wyoming
These states currently do not participate in sales tax holidays, meaning they do not have specific time periods during which tax exemptions are offered for certain items. However, tax laws and regulations may change over time, so it’s always a good idea to check for updates and changes in each state’s tax policies.
Are tax free holidays a good idea?
In 2022, seventeen states held sales tax holidays, a decrease from the peak of 19 in 2010 and consistent with the previous year.
However, evidence suggests that these holidays do not spur economic growth or significantly increase consumer purchases. Instead, they simply shift the timing of purchases. Moreover, sales tax holidays can be an inefficient response to inflation, leading to concentrated spending within a limited timeframe when supply chains are already strained.
Additionally, these holidays create complexities for tax compliance, labor allocation, and inventory management.
Despite the drawbacks, larger businesses often lobby for sales tax holidays due to the free advertising and perceived discounts. Moreover, sales tax holidays involve politicians favoring certain products and industries with exemptions, leading to arbitrary discrimination and distorting consumer decisions.
While sales taxes are somewhat regressive, sales tax holidays are not an effective method for providing relief to low-income individuals, as they disproportionately benefit higher-income groups.
These holidays are considered political gimmicks that divert attention from the need for genuine, permanent tax relief. Instead of temporary holidays, policymakers should focus on cutting sales tax rates year-round to save money for consumers.
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