Don't Miss Out on These Tax-Free Shopping Weekends
KEY POINTS
- Sales tax holidays can save you money when you spend on certain items -- but only for a limited time.
- Residents of Maryland, Connecticut, and New Jersey can look forward to upcoming sales tax holidays on back-to-school essentials.
- There are many other ways you can save money this fall, even if your state doesn't have a tax holiday -- consider thrifting for supplies or leaning on hand-me-down items.
Back-to-school shopping can take a bite out of any budget. But some states are giving parents a break by offering tax holidays on clothes and school supplies. Keep reading for more on how to lower your bill this shopping season.
What is a sales tax holiday?
When shopping for back-to-school, the bottom line is, well, the bottom line. It doesn't just matter how much that backpack or binder costs, it also matters how much tax you'll owe on your purchase. And if you live in one of the highest sales tax states in the U.S., your tax bill could add up to a lot.
Luckily, some states offer sales tax holidays to encourage spending and help locals save. Generally, your state will tell you which types of goods qualify for exemption from state sales taxes. States have a lot of discretion over what is exempted, so while some states exempt things like school supplies, others exempt disaster preparedness gear. Note, however, that not all states offer sales tax holidays.
Beyond buying the right type of goods, there are two main conditions for most of these sales tax exemptions. First, these holidays typically only last between a few days and a week, so it's important to know about them in advance. Second, there are typically caps on how much you can spend per item in order to avoid paying sales tax. Confirm with your state tax authority before celebrating a sales tax holiday.
Upcoming tax holiday dates
A sales tax holiday is already underway in Maryland. Between now and Saturday, Aug. 19, consumers buying many types of clothes will be eligible for a sales tax exemption. Items must each cost less than $100, but may include footwear. For more information, click here.
The following week, between Aug. 20 and Aug. 26, shoppers in Connecticut will have a similar way to save. Clothing and footwear under $100 per item will be exempt from the state's 6.35% sales tax. Read the governor's announcement here.
Later this month and into the next, New Jersey will also offer a sales tax holiday on a wide range of purchases. School and art supplies, instructional materials, and computers under $3,000 are all sales tax exempt from Aug. 26 through Sept. 4. To learn more about what goods qualify, visit the FAQ page here.
Other ways to save
Breaking into a new school year shouldn't break the bank. And whether your state offers a sales tax holiday or not, there are plenty of ways to cut down on back-to-school costs. I encourage you to think outside of the box when it comes to getting school supplies.
For example, older siblings, friends, and students in the community can be a great source of hand-me-down items, especially with things like textbooks and calculators. Thrifting can also save you money, and some thrift stores sell new, unopened supplies that they've received as donations. Some parents even team up to buy supplies wholesale, outfitting their communities while saving money.
Sales tax holidays are just one way that Americans are making back-to-school shopping more affordable. Be sure to check with your local tax authority to see if your state offers a sales tax holiday, when it's happening, and what restrictions apply. Even if your state doesn't offer a sales tax exemption, planning ahead and getting creative can pay off when it comes to summer-ending spending.
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