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
- July 21-23
Arkansas
- August 5-6
Connecticut
- August 20-26
Florida
- July 1, 2023 - June 30, 2024
- July 24, 2023 - August 6, 2023, January 1, 2024 - January 14, 2024
- September 2-8
Iowa
- August 4-5
Maryland
- February 18-20
- August 13-19
Massachusetts
- August 12-13
Mississippi
- July 28-29
- August 25-27
Missouri
- April 19-25
- August 4-6
Nevada
- October 27-29
New Jersey
- August 26 - September 4
New Mexico
- August 4-6
Ohio
- August 4-6
Oklahoma
- August 4-6
South Carolina
- August 4-6
Tennessee
- July 1, 2022 - June 30, 2023
- July 28-30
Texas
- April 22-24
- May 27-29
- August 11-13
West Virginia
- August 4-7
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.