Seventeen states are offering temporary sales tax holidays as families prepare for the upcoming school year. These events aim to provide financial relief by exempting essential back-to-school items such as clothing, footwear, electronics, and sports equipment from state sales tax.
The duration and scope of these tax breaks vary by state. Florida has one of the longest holidays, running from July 20 through August 20, covering clothing, school supplies, backpacks, and computers within specified price limits. Missouri's holiday in August includes qualifying computers up to $1,500, software, graphing calculators, clothing, and school supplies. Texas is holding its tax-free weekend from August 7 through August 9, exempting many school supplies, clothing, and backpacks priced under $100, though most computers are not included.
Connecticut has expanded its program this year, raising the price limit for qualifying clothing and footwear to $300 per item. Some retailers, including Walmart and Target, are also offering their own "Back to School" sales in conjunction with these state-sponsored holidays.
However, not all states are participating. California, New York, and Pennsylvania do not hold annual back-to-school sales tax holidays, and New Jersey has repealed its program. States not offering these holidays include Arizona, Colorado, the District of Columbia, Georgia, Hawaii, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Michigan, Minnesota, Nebraska, Nevada, North Carolina, North Dakota, Rhode Island, South Dakota, Utah, Vermont, Washington, Wisconsin, and Wyoming.
For families in states without these specific holidays, the absence of a sales tax year-round in states like Alaska, Delaware, Montana, New Hampshire, and Oregon means purchases are always tax-free. In other states, sales tax can add a significant percentage to the total cost of school supplies.
The timing of these tax holidays comes as the cost of school supplies has increased by 7.7 percent and average lunch costs have risen by 10.9 percent compared to last year. Data from Groundwork Collaborative indicates that families with K-12 students are expected to spend an average of $864 per student, with college students costing families over $1,400 on average when factoring in computers and dorm supplies.
WalletHub editor John Kiernan noted that parents are struggling with inflation and debt, and many feel overwhelmed by the costs associated with back-to-school shopping. A recent WalletHub survey found that 83 percent of parents believe the overall cost of education has become "out of control," with a significant number feeling that schools ask them to purchase too many items. Experts suggest strategies such as shopping across state lines or making multiple shopping trips to maximize tax-free purchases, including asking cashiers to split items into separate transactions if a purchase limit is in place.