16/08/2024 | News release | Distributed by Public on 17/08/2024 06:16
This article has been updated to reflect the latest sales tax holiday developments. It originally published January 3, 2024.
Sales tax holidays are all the rage right now. There were about 45 sales tax holidays in 24 states in 2023 and could be even more than that in 2024. If you're in retail, hang on to your hats and read our sales tax holiday FAQ to learn:
A sales tax holiday is a time when consumers don't pay sales tax on eligible purchases of certain normally taxable goods. A vacation from sales tax, if you will. Sales tax holidays typically last for a day, a weekend, or a week, though they've been known to go on for months or even years (we're looking at you, Florida and Tennessee).
Retailers otherwise required to collect sales tax on taxable retail sales don't collect it on sales of qualifying goods during a sales tax holiday. With few exceptions, retailers are not permitted to collect sales tax on any eligible retail sale made in store, online, by mail, or by other means.
A sales tax holiday is also known as a tax free holiday, tax-free weekend, tax-free week, tax-free event, among other names.
Not all states have a sales tax holiday, but legislators in any state with a statewide sales tax could establish one. They tend to be politically popular because just about everyone enjoys not paying sales tax from time to time.
While sales tax holidays in most states are annual events, tax-free periods can also be one-offs. Florida has no annual tax holidays but usually provides at least one sales tax holiday each year - and frequently more than one.
Tax holidays can also exist at the local level (i.e., for local sales taxes only) in certain home rule states where local governments levy and administer local taxes. Several communities in Alaska had a tax-free event in 2023, and at least one will have one in 2024.
Every tax holiday is different, but most follow a certain theme. Back-to-school sales tax holidays that exempt qualifying school supplies and eligible clothing tend to be the most popular. There are also tax-free weekends for disaster preparedness supplies, Energy Star appliances, water-saving products, and even firearms, ammunition, and hunting supplies.
Items that would help a person weather a disaster tend to be exempt during a disaster preparedness (aka, hurricane preparedness) sales tax holiday. These generally include batteries, coolers, generators, and tarps. Second-amendment tax-free weekends typically exempt certain safety devices in addition to firearms, ammunition, and hunting supplies, though gun safes may not be eligible.
Recent years have seen sales tax holidays go outside the box. For example, Florida offered temporary sales tax exemptions for admissions, camping supplies, fishing supplies, outdoor recreation supplies, and tools in 2022 and 2023, and it will provide another Freedom Month sales tax holiday in 2024; Connecticut and Tennessee temporarily exempted restaurant food in 2022; and numerous states had gas tax holidays in 2022 and/or 2023.
A sales tax holiday can, in theory, apply to anything that's normally subject to sales tax.
Most sales tax holidays have price restrictions, but some don't.
There's no price cap during the annual South Carolina tax holiday, or during the tax-free periods offered by certain cities and boroughs in Alaska. Massachusetts has a high threshold of $2,500 for any single item of tangible personal property.
Yet price caps are more common than not, and they usually vary by the product sold. Thus many articles of clothing and footwear priced $100 or less are exempt during Missouri's annual back-to-school holiday, while school supplies are only exempt if the retail sales price is $50 or less. Arkansas caps the price for clothing but not for school supplies during its annual holiday.
Price restrictions in Florida got out of hand during the state's Freedom Week sales tax holiday in 2021 and again in 2022: The temporary exemption covered admissions to many events and a variety of general outdoor supplies but applied only to the first $25 of the sales price of goggles, the first $50 of the sales price of safety flares, the first $75 of the sales price of paddles, and so on. Fortunately, price caps were more normal during the 2023 Florida Freedom Summer sales tax holiday.
Jump to the states and tax-free events that interest you:
Alabama tax-free weekends begin at 12:01 a.m. and end at midnight. They're mandatory for the state sales tax but not for local tax; click on the links above to find participating counties and municipalities.
As there's no state sales tax in Alaska, there are no statewide tax holidays. However, local governments sometimes offer tax-free periods for local sales tax. For 2024, these include the following.
All retailers are required to participate and may not charge state or local sales tax on qualifying items during the tax-free weekend, which begins at 12:01 a.m. on the first Saturday of August and ends at 11:59 p.m. the following Sunday.
Florida sales tax exemption period on impact-resistant windows, doors, and garage doors, July 1, 2022-June 30, 2024
Doors, garage doors, or windows must be labeled as impact-resistant or have an impact-resistant rating to qualify
Florida back-to-school sales tax holiday, January 1-14, 2024
Clothing, wallets, and qualifying bags priced $100 or less
Qualifying school supplies priced $50 or less
Learning aids and jigsaw puzzles priced $30 or less
Personal computers and computer-related accessories priced $1,500 or less
Qualifying businesses may opt out of the January 2024 back-to-school sales tax holiday if less than 5% of their gross sales of tangible personal property in the prior calendar year were items qualifying for the sales tax holiday. Any business that doesn't want to participate in the January 2024 event must have notified the Florida Department of Revenue, in writing, by December 23, 2023, and posted a copy of that notice in a conspicuous location at its place of business.
Florida Energy Star sales tax holiday, July 1, 2023-June 30, 2024
Washing machines priced $1,500 or less
Clothes dryers priced $1,500 or less
Refrigerators or refrigerator/freezers priced $4,500 or less
Water heaters priced $1,500 or less
The sales tax exemption applies only to qualifying Energy Star products
Florida sales tax exemption for gas ranges and cooktops, July 1, 2023-June 30, 2024
Any range of cooktop fueled by combustible gas, such as butane, natural gas, or propane (no price restrictions)
Does not apply to outdoor gas grills, camping stoves, or other portable stoves
The sales tax holidays listed above were enacted in 2023. The following sales tax holidays are new for 2024.
Florida disaster preparedness sales tax holiday, June 1-14, 2024; and August 24-September 6, 2024
Portable generators priced $3,000 or less
Bungee cords, ratchet straps, ground-anchor systems, or tie-down kits priced $100 or less
Tarpaulin or other flexible waterproof sheeting priced $100 or less
Carbon monoxide detectors, smoke detectors or smoke alarms, and fire extinguishers priced $70 or less
Coolers and ice chests (nonelectric food storage) priced $60 or less
Portable power banks priced $60 or less
Any gas or diesel fuel containers, including LP gas and kerosene containers, priced $50 or less
Portable self-powered radios, two-way radios, or weather-band radios priced $50 or less
Qualifying batteries, including rechargeable batteries (excluding automobile and boat batteries), priced $50 or less
Portable self-powered light sources priced $40 or less
Reusable ice priced $20 or less
Supplies necessary for the evacuation of household pets, including but not limited to the following: a bag of dry cat or dog food weighing up to 50 pounds priced $100 or less; pet beds priced $40 or less; cat litter weighing up to 25 pounds priced $25 or less; leashes, collars, and muzzles priced $20 or less; cat litter pans, travel-sized food bowls, pet waste bags, and manual can openers priced $15 or less; and wet cat or dog food priced $10 or less per can or pouch (or the equivalent)
Florida 2024 Freedom Month sales tax holiday, July 1-31, 2024
Admissions to fairs, festivals, movies, and cultural, musical, theatrical, and sporting events to be held on any date(s) from July 1 through December 31, 2024 (including qualifying season tickets)
Admissions to private and membership clubs providing fitness facilities (from July 1 through December 31, 2024)
Museum entry, including annual passes
State park entry, including annual passes
Electric scooters priced $500 or less (must meet other qualifications)
Boating and water activity supplies:
Canoes and kayaks priced $500 or less
Paddleboards and surfboards priced $300 or less
Kneeboards, wakeboards, water skis, and recreational inflatable water floats/tubes capable of being towed priced $150 or less
Coolers, life jackets, oars, and paddles priced $75 or less
Safety flares priced $50 or less
Inflatable chairs, pool floats and toys, and recreational pool tubes priced $35 or less
Goggles, snorkels, and swimming masks priced $25 or less
Camping supplies:
Tents priced $200 or less
Camping stoves, collapsible camping chairs, portable hammocks, and sleeping bags priced $50 or less
Camping lanterns and flashlights priced $30 or less
Fishing supplies (for recreational use only, not commercial fishing):
Rods and reels priced $150 or less (if sold as a set) or $75 or less (if sold individually)
Tackle boxes or bags priced $30 or less
Bait or fishing tackle priced $10 or less (if multiple items are sold together) or $5 or less (if sold individually)
General outdoor supplies:
Bicycles priced $500 or less
Outdoor charcoal or gas grills priced $250 or less
Binoculars priced $200 or less
Sunglasses priced $100 or less
Bicycle helmets and hydration packs priced $50 or less (bike helmets for youth are always sales tax exempt)
Water bottles priced $30 or less
Sunscreen, sunblock, and insect repellent priced $15 or less
Residential pool supplies:
All residential pool and spa chemicals priced $150 or less, when purchased by an individual
Individual residential pool and spa replacement parts, nets, filters, lights, and covers priced $100 or less
Florida back-to-school sales tax holiday, July 29-August 11, 2024
Personal computers and computer-related accessories priced $1,500 or less
Clothing, wallets, and qualifying bags priced $100 or less
School supplies priced $50 or less
Learning aids and jigsaw puzzles priced $30 or less
Florida tool time sales tax holiday, September 1-7, 2024
Power tools priced $300 or less
Toolboxes for vehicles priced $300 or less
Ladders priced $250 or less
Work boots priced $175 or less
Power tool batteries priced $150 or less
Handheld pipe cutters, drain opening tools, and plumbing inspection equipment priced $150 or less
Industry textbooks and code books priced $125 or less
Electrical voltage and testing equipment priced $100 or less
Hard hats and other head protection priced $100 or less
Shop lights priced $100 or less
Tool belts priced $100 or less
Hearing protection priced $75 or less
Tool boxes priced $75 or less
Duffel bags or tote bags priced $50 or less
Fuel cans priced $50 or less
Hand tools priced $50 or less
LED flashlights priced $50 or less
Safety glasses priced $50 or less
Shovels and rakes priced $50 or less
Protective coveralls priced $50 or less
High-visibility safety vests priced $30 or less
Work gloves priced $25 or less
Florida tax holidays don't apply to transactions occurring within an airport, entertainment complex, public lodging establishment, or theme park. See the Florida Department of Revenue for additional guidance.
Iowa annual sales tax holiday for select clothing and footwear, August 2-3, 2024
Qualifying items priced under $100
Applies to state and local tax
All businesses open on these days are required to participate and cannot advertise that they'll pay or absorb the sales tax on nonqualifying items. The tax-free period begins at 12:01 a.m. the first Friday of August and ends the next day at midnight.
Louisiana Second Amendment sales tax holiday, September 6-8, 2024
Specified ammunition, firearms, and hunting supplies
Qualifying items are exempt from state sales tax and may be exempt from local sales tax in some jurisdictions
Act 1 of 2018 suspended Louisiana's three annual sales tax holidays until June 30, 2025. Senate Bill 56 (2023) reinstated the state's Second Amendment sales tax holiday for 2023 and 2024.
Annual Shop Maryland energy weekend, February 17-19, 2024
Qualifying Energy Star products (no price restriction)
Solar water heaters (no price restriction)
Annual Shop Maryland tax-free week, August 11-17, 2024
Clothing and footwear priced $100 or less
For qualifying backpacks and bookbags, only the first $40 is exempt from sales tax
There's no local sales tax in Maryland, so the temporary exemptions apply only to the state sales tax. The tax-free weekend for qualifying Energy Star products and solar water heaters starts at 12:01 a.m. on the Saturday immediately preceding the third Monday in February and ends at 11:59 p.m. on the third Monday of February. The August tax-free week begins at 12:01 a.m. on the second Sunday in August and concludes at midnight on the following Saturday.
Massachusetts annual sales tax holiday, August 10-11, 2024
Most single items of tangible property priced $2,500 or less
State sales tax only (there's no local sales tax in Massachusetts)
Dates for the Massachusetts sales tax holiday weekend are to be set each year no later than July 1. All businesses, including internet vendors, must participate in the state's tax-free weekend.
Mississippi annual sales tax holiday, July 12-14, 2024
Clothing and footwear priced less than $100
Specific school supplies priced less than $100
Municipalities may opt out by resolution, so depending on the location, local sales tax may apply to eligible sales within the corporate limits of the municipality
Mississippi annual Second Amendment sales tax holiday, August 30-September 1, 2024
Firearms, ammunition, and hunting supplies (no price restriction)
Safety devices and equipment (but not gun safes)
Applies to state and local tax
Tax-free weekends in Mississippi typically begin at 12:01 a.m. and end at midnight.
Missouri annual Show Me Green sales tax holiday, April 19-25, 2024
Qualifying Energy Star products priced $1,500 or less (including air conditioners and furnaces)
Retailers selling less than 2% of the qualifying merchandise shall offer a sales tax refund in lieu of the sales tax holiday
Applies to state and local sales tax
Missouri annual back-to-school sales tax holiday, August 2-4, 2024
Clothing priced $100 or less
Personal computers and computer peripheral devices priced $1,500 or less
Computer software priced $350 or less
Graphing calculators priced $150 or less
School supplies priced $50 or less
Applies to state and local tax
Both tax-free periods begin at 12:01 a.m. and end at midnight. Local jurisdictions are required to participate for local sales tax as of January 1, 2023.
Nevada Day sales tax holiday, October 25-27, 2024
Tangible personal property sold to a member of the Nevada National Guard who is on active duty and a resident of Nevada, or to their qualifying dependents
This sales tax holiday is different from most in that it applies only to qualifying Nevada National Guard members and their qualified dependents. Anyone interested in taking advantage of the temporary sales and use tax exemption must apply for it each year through their Commanding Officer no later than 30 days before Nevada Day. The Nevada Department of Taxation will issue a letter of exemption to eligible applicants. Retailers that make an exempt sale to qualifying National Guard members or their dependents must obtain and retain a copy of the consumer's letter of exemption.
According to the department's guidance from 2021, the Nevada National Guard - Nevada Day Holiday Exemption takes place the day Nevada Day is observed and the Saturday and Sunday immediately following. Per NRS 236.015, "Nevada Day is October 31 but is to be observed on the last Friday in October."
New Jersey repealed its annual back-to-school sales tax holiday on June 28, 2024.
New Mexico annual back to school tax free holiday, August 2-4, 2024
Bookbags, backpacks, maps, and globes priced under $100
Clothing, footwear, and accessories priced less than $100
Computers (desktop, laptop, or notebook) priced up to $1,000 (includes ereaders with computing functions and tablets)
Computer-related items (e.g., keyboards, microphones, monitors, mouse, or speakers) priced up to $500
Handheld calculators priced under $200
School supplies priced under $30
Retailers aren't required to participate in the back-to-school tax holiday; those that don't participate must pay tax on otherwise eligible sales and may recover the tax from the customer.
New Mexico small business Saturday gross receipts tax holiday, November 30, 2024
Retailers that maintain their primary place of business in the state and employ no more than 10 employees at any one time may deduct receipts from retail sales of qualifying property with a sales price of less than $500 (i.e., clothing, accessories, sporting goods, tools, books, art, cosmetics, musical instruments, cookware, bedding, furniture, toys, games, and electronics)
This deduction is available to a qualifying small business prior to July 1, 2025, for sales occurring during the first Saturday after Thanksgiving
New Mexico imposes a gross receipts tax rather than a sales tax, so retailers electing to participate in the tax holiday may claim a deduction for qualifying items. Both holidays begin at 12:01 a.m. and conclude at midnight.
Ohio annual sales tax holiday, (expanded for 2024), July 30-August 8, 2024
Most tangible personal property priced less than $500
Applies to state and local tax; participation is mandatory
Ohio's tax-free period begins at 12:00 a.m. on the designated day and concludes at 11:59 p.m. Eligible items are exempt from state sales tax as well as county and transit sales taxes.
Unlike in previous years, eligible business-to-business sales do qualify for the 2024 Ohio sales tax holiday.
Oklahoma sales tax holiday, August 2-4, 2024
Clothing and footwear priced less than $100
Applies to state and local sales tax; participation is mandatory
Puerto Rico back to school sales tax holiday, January 4-5, 2024; July 19-20, 2024; and January 10-11, 2025
School supplies
School uniforms and footwear
Puerto Rico hurricane preparedness sales and use tax free period, May 24-26, 2024
Portable generators priced $3,000 or less
Specified hurricane preparedness items (no price caps)
The hurricane preparedness tax holiday starts at midnight and concludes at 11:59 p.m.
South Carolina sales tax holiday, August 2-4, 2024
Clothing and footwear
Computers, printers and printer supplies, and software (does not include purchases for business or cell phones, smartphones, or other handheld devices that make phone calls or are primarily used to listen to music, watch videos, or read books)
School supplies
Select bed and bath items and other products
No price restrictions on eligible goods
Applies to state and local tax; participation is mandatory
South Carolina's tax-free weekend begins at 12:01 a.m. on the first Friday in August and runs through the following Sunday.
Tennessee sales tax holiday, July 26-28, 2024
Apparel priced $100 or less
Computers, laptops, and tablets priced $1,500 or less (excludes software)
School supplies and school art supplies priced $100 or less
Applies to state and local tax; participation is mandatory for merchants selling qualifying items
The annual event begins at 12:01 a.m. on the last Friday in July and concludes at 11:59 p.m. the following Sunday.
Tennessee provided a grocery tax holiday for food and food ingredients in 2023 and may do so again in 2024. The exemption did not apply to alcoholic beverages.
Texas emergency preparation supplies sales tax holiday, April 27-29, 2024
Hurricane shutters and emergency ladders priced less than $300
Portable generators priced less than $3,000
Specified emergency preparation supplies priced less than $75
Applies to state and local tax; participation is mandatory
Texas Energy Star sales tax holiday, May 25-27, 2024
Energy Star air conditioners priced at $6,000 or less
Energy Star refrigerators priced at $2,000 or less
Specified Energy Star products (no price restriction)
Applies to state and local tax; participation is mandatory
Certain contractors or taxable service providers can buy qualifying energy-efficient products tax free (without an exemption or resale certificate) to keep in their inventory
Texas water-efficient products sales tax holiday, May 25-27, 2024
Any WaterSense-labeled product may be purchased (for business or personal use) tax free during the sales tax holiday
Certain other water-conserving products (for residential use only) may be purchased tax free
No price restrictions
Applies to state and local tax; participation is mandatory
Certain contractors, landscapers, or other service providers can buy WaterSense products tax free (without an exemption or resale certificate) to keep in their inventory; lump-sum contractors must pay tax on these items
Texas annual sales tax holiday, August 9-11, 2024
Clothing and footwear priced less than $100 (including cloth and disposable fabric face masks)
Specified school supplies and school backpacks priced less than $100 per item
Applies to state and local tax; participation is mandatory
Texas tax-free weekends typically begin at 12:01 a.m. and conclude at midnight. The Texas Comptroller specifies that internet, mail, and telephone orders generally qualify, as long as either:
The item is both paid for by the customer and delivered during the exemption period; or
The customer orders and pays for the item (and the seller accepts the order) during the exemption period for immediate shipment, even if delivery is made after the sales tax holiday concludes
Virginia annual 3-day sales tax holiday, August 2-4, 2024
Clothing and footwear priced $100 or less
Energy Star and WaterSense products priced at $2,500 or less
Gas-powered chain saws priced $350 or less
Portable generators priced $1,000 or less
School supplies priced $20 or less
Specified emergency and hurricane preparedness items (including chain saw accessories) priced $60 or less
Applies to state and local sales tax
Virginia suspended its annual three-in-one sales tax holiday for a bit but reinstated it with the enactment of its 2023 budget. The 3-day sales tax holiday starts the first Friday in August at 12:01 a.m. and concludes the following Sunday at 11:59 p.m.
West Virginia state sales tax holiday, August 2-5, 2024
Clothing and footwear priced $125 or less
Computers (laptop or tablet) priced $500 or less
School instructional materials priced $20 or less
School supplies priced $50 or less
Sports equipment priced $150 or less
Certain products meeting the price restrictions don't qualify for the exemption
Applies to state and local sales and use tax; participation is mandatory
The West Virginia tax-free weekend starts at 12:00 a.m. on the Friday before the first Sunday in August and concludes the following Monday at 11:59 p.m.
We'll update this post if and when any states establish a new sales tax holiday.
Knowing which states offered tax-free weekends in the past can give an idea of what may happen in the future.