What is a sales tax holiday?
Sales tax holidays first started in 1980 and have grown to include a number of different states and purchases - here’s what they mean, how to maximize their advantages, and what you can buy per state.
Summary
A sales tax holiday is a limited time period when a state allows purchases of specific items tax-free.
The first sales tax holiday was held in 1980 and was only for automobile purchases.
Sales tax holidays by state differ not just by date but also by the tax-exempt products.
Knowing what to buy during a sales tax holiday can save you money on essentials.
What is a sales tax holiday?
A sales tax holiday is a set period of time during which certain products are exempt from state sales taxes and sometimes local taxes, too.
Originally, sales tax holidays started as a one-time tax break for automobile purchases. Ohio and Michigan were the first states in America to hold sales tax holidays in 1980. but when New York caught on to the trend in 1997, the rest of the country followed suit, soon offering a wide variety of goods on the same holiday.
Sales tax holidays are beneficial to the public for a number of reasons. Not only do they provide cost-savings on important, often essential items, but they also help to reduce cross-border shopping.
When are the sales tax holidays by state in 2024?
Sales tax holidays vary from state to state, and not all states offer them. They can also change from year to year, making it important to keep up with annual updates.
It’s also worth noting some states have multiple tax holidays throughout the year, with different items being reduced at other times.
Below, we’ve listed the sales tax holidays for 2023-2024. 2024-2025 tax holidays look set to follow a similar pattern, subject to new information being released:
Alabama
February 24-26
Hurricane-preparedness generators / $1,000
Weather-preparedness supplies / $60
July 21-23
Clothing / $100
Computers / $750
School supplies / $50
Books / $30
Arkansas
August 5-6
Clothing / $100
School supplies / No maximum
Connecticut
August 20-26
Clothing and footwear / $100
Florida
July 1, 2023 - June 30, 2024
Energy Star appliances / $1,500-$3,000
July 24, 2023 - August 6, 2023, January 1, 2024 - January 14, 2024
Back to school school supplies – $50
Clothing – $100
Computers – $1,500
September 2-8
Tool time, including:
Work gloves / $25
Flashlights and bags / $50
Toolboxes / $75
Test equipment / $100
Iowa
August 4-5
Clothing / $100
Maryland
February 18-20
Energy Star products / No maximum
August 13-19
Clothing and footwear / $100
Massachusetts
August 12-13
All tangible personal property / $2,500 (except vehicles, gas, food, alcohol, certain utilities, tobacco, marijuana)
Mississippi
July 28-29
Clothing and footwear / $100
August 25-27
Firearms, ammunition, hunting supplies / No maximum
Missouri
April 19-25
Energy Star products / $1,500
August 4-6
Clothing / $100
Computers / $1,500
School supplies / $50
Nevada
October 27-29
Purchases by National Guard members / No maximum
New Jersey
August 26 - September 4
School and art supplies / No maximum
Instruction materials / No maximum
Computers / $3,000
New Mexico
August 4-6
Clothing / $100
Computers / $1,000
Computer equipment / $500
School supplies / $30
Ohio
August 4-6
Clothing / $75
School supplies / $20
Oklahoma
August 4-6
Clothing / $100
South Carolina
August 4-6
Items include computers, school supplies, clothing / No maximum
Tennessee
July 1, 2022 - June 30, 2023
Gun safes and safety devices / No maximum
July 28-30
Clothing / $100
School supplies / $100
Computers / $1,500
Texas
April 22-24
Generators / $3,000
Storm devices / $300
Preparedness items / $75
May 27-29
Energy Star products / No maximum
Air conditioners / $6,000
Other / $2,000
August 11-13
Clothing, backpacks, school supplies / $100
West Virginia
August 4-7
Clothing / $125
School supplies / $20
Sports equipment / $150
Computer or tablet / $500
Source: Federation of Tax Administrators
What should I buy during a sales tax holiday?
As the above table indicates, in different states, there are different products that you can buy tax-free. The best items to buy during a sales tax holiday depend on where you are located.
Here are some examples of the best products to buy in some of the most prominent sales tax holiday states:
Texas: School supplies and preparedness items
New Jersey: School and art supplies, computers, construction materials
Florida: Energy Star appliances
How much can I save during a sales tax holiday?
The amount of money you can save during a sales tax holiday is significant if you know what to shop for.
According to USA Today, sales tax accounts for 32% of overall collections at a state level.
Want to learn more about taxes?
Depending on your state, if you shop smart, sales tax holidays can save you a large sum of money on both essential and non-essential items.
Let Unbiased match you with a financial advisor who can offer expert advice.
Senior Content Writer
Rachel is a Senior Content Writer at Unbiased. She has nearly a decade of experience writing and producing content across a range of different sectors.