Yahoo Finance Back-to-school sales tax holidays: These states are giving families a break
If you've got kids, this is the season for deals.
First, the IRS just sent families $250 or more as the first monthly payments under a temporary expansion of the child tax credit. And now, state sales tax holidays are offering parents savings on back-to-school.
In a tradition that began more than 20 years ago, more than a dozen states have scheduled days of tax-free shopping on items needed for the new school year, often including clothing, backpacks and laptops.
Anybody can get the deals: All clothing qualifies, and if your state's tax holiday covers computers, you don't have to be a parent to buy one without sales tax. Big chains typically plan sales around the holidays, for even more savings. And, special sales tax exemptions typically extend to online shopping, too.
If you live in Alabama, unfortunately your state's tax holiday is already over. But here are 15 others providing back-to-school tax breaks.
Mississippi
When: July 30-31
Shoppers in Mississippi get a two-day holiday from sales taxes on school supplies, clothing and footwear items priced below $100.
The state's Department of Revenue says while belts and hats qualify as clothing, the tax break does not extend to skis, swim fins or roller blades. The promotion spares Mississippians from the state's usual 7% sales tax.
Your credit cards are too tapped out to do much shopping? You might want to consider rolling your balances into a single lower-interest debt consolidation loan to pay off that debt faster and more affordably.
Tennessee
When: July 30-Aug. 1
The back-to-school tax holiday in Tennessee makes clothing, shoes, school supplies (including backpacks) and art supply items tax-free — if the price is $100 or less.
You also pay no tax on computers or tablets costing up to $1,500.
You can make your back-to-school savings even sweeter by paying with a cash-back credit card. Tennessee ordinarily charges a 7% sales tax.
Florida
When: July 31-Aug. 9
In Florida, back-to-school shoppers get a full 10 days to enjoy back-to-school sales tax savings.
During the holiday, clothing, accessories and shoes priced up to $60 are tax-free. "Accessories" include purses, bibs, hunting vests, youth bicycle helmets, fanny packs and martial arts attire. "Shoes" include slippers and bowling shoes.
Shoppers also pay no sales tax on individual school supplies selling for $15 or less, or on computers and related gear (including monitors, printers and web cameras) costing up to $1,000. Sales taxes in the Sunshine State usually add around 7%, on average.
Iowa
When: Aug. 6-7
The Hawkeye State's tax holiday gives shoppers two days of relief from state and local sales taxes on clothing and footwear items that cost less than $100.
Iowa officials say the tax break does not extend to umbrellas, handkerchiefs, jewelry or specialty athletic shoes you wouldn't wear out on the street. But in previous years, the list of eligible items did include diapers, bedroom slippers and wedding gowns.
If you're buying shoes that cost $120, officials say you can't claim you've really got two $60 items and hope to avoid the sales tax — it doesn't work that way. State and local sales taxes can add 6% to 8% to purchases in Iowa.
Missouri
When: Aug. 6-8
The back-to-school sales tax holiday in Missouri offers tax-free shopping when you buy clothing items that cost $100 or under, or make school supply purchases of up to $50.
But the savings don't stop there. You also will pay no tax on personal computers or peripheral items (like printers) costing up to $1,500 each, or on software valued at $350 or less.
Note that some of Missouri's less generous cities and counties choose not to participate in the holiday. In those cases, you still pay local sales taxes but not the state's 4.225% tax.
New Mexico
When: Aug. 6-8
During the tax "bonanza," as New Mexico likes to call it, back-to-school shoppers are off the hook from sales taxes that can exceed 9%.
The state gives a three-day sales tax break on clothing and shoes priced at less than $100, and on standard school supply items that cost less than $30 each.
The holiday also means no sales tax on desktop, laptop, tablet or notebook computers costing less than $1,000. If you're buying computer equipment — including a printer, hard drive or motherboard — you pay no tax if the price is under $500.
Ohio
When: Aug. 6-8
The Buckeye State's sales tax holiday means no taxes on clothing items priced at $75 or less, or on school supplies and textbooks that cost $20 or under.
Ohioans ordinarily pay state and local sales taxes ranging from 6% on up to 8%.
Those percentages are much steeper than today's mortgage rates, now averaging just 2.78% for a 30-year fixed-rate home loan, according to mortgage company Freddie Mac. If you own your home and haven't refinanced in the last year, you could be missing out on hundreds of dollars in monthly savings.
Oklahoma
When: Aug. 6-8
In Oklahoma, the three-day tax holiday means no state or local sales taxes on clothing and footwear items priced under $100.
Goods usually covered by the tax break have included: aprons; diapers; belts; slippers; underwear; wedding apparel; bathing suits; and costumes. The usual sales taxes in Oklahoma can reach as high as 11%.
Back-to-school shopping can be a good opportunity to teach your children about money. To make those lessons even more engaging, you might get them their own kid-friendly debit cards — to give them some practice with plastic, under your watchful eye.
South Carolina
When: Aug. 6-8
South Carolina offers one of best back-to-school deals around.
The state's three-day tax holiday, which dates back to 2000, suspends state and local sales taxes on clothing, accessories, clothing and computers — regardless of the price. The tax break even extends to bed and bath items, including bed sheets, towels and shower curtains.
Sales taxes in the Palmetto State normally run from 6% on up to 9%, depending on the city. South Carolina's Department of Revenue says in past years, tax holiday weekend shoppers have saved up to $3 million.
Texas
When: Aug. 6-8
Texas gives shoppers a three-day break from sales taxes on most clothing, footwear, school supplies and backpacks priced at less than $100.
But the state draws the line at athletic shoes and protective gear that you wouldn't wear off the field — including golf cleats and football pads. That stuff is not tax-exempt. The usual sales taxes paid in Texas add up to an average 8.19%.
No matter where you live, a good way to give your budget a break is by doing some comparison shopping every time your car insurance comes up for renewal. You might easily save hundreds of dollars by reviewing prices from multiple insurance companies.
Virginia
When: Aug. 6-8
Virginia's three-day sales tax holiday offers deals on not only back-to-school items but also hurricane preparedness gear, and energy- and water-saving products.
You pay no tax on clothing or shoes priced at $100 or less, or on individual school supplies that cost $20 or less.
Virginia's 5.3% in total sales taxes also are suspended if you buy:
Portable generators costing $1,000 or less.
Gas-powered chainsaws priced at $350 or under.
Other hurricane supplies that cost $60 or less.
Energy Star appliances and WaterSense items (such as faucets, showerheads and toilets) costing $2,500 or under.
Arkansas
When: Aug. 7-8
Arkansas offers two days free of sales taxes on clothing items priced under $100 and "clothing accessories" (including handbags, briefcases, wallets, umbrellas and jewelry) that cost less than $50.
Shoppers also pay no tax on school supplies or instructional materials, including text books and reference books. Consumers in Arkansas ordinarily pay sales taxes that range up to 11.5%.
Been wanting to try your luck in the stock market but didn't think you had the means? You might start investing slowly while you shop for back-to-school. Just download a popular app that helps you build a diversified portfolio with nothing more than spare change from your everyday purchases.
Maryland
When: Aug. 8-14
Maryland's tax-free period lasts an entire week and offers savings when you buy clothes or shoes that cost $100 or less.
Stuff that's exempted from the usual 6% sales tax statewide includes diapers, costumes, martial arts clothing, pajamas, bathrobes, chef's uniforms, hunting vests and pants, and even antique clothing. Buying a book bag or backpack in Maryland? The first $40 of that purchase is tax-free, too.
If you order and pay for eligible items online during the week, you won't pay taxes either. You can boost your savings on the web by using a free browser add-on that automatically searches for lower prices and coupons before you click "buy."
Massachusetts
Shoppers in Peabody, Massachusetts, hit a J.C. Penney for back-to-school.
When: Aug. 14-15
The sales tax holiday in Massachusetts couldn't be simpler. For two days, you don't pay the state's 6.25% sales tax on most items that cost $2,500 or less.
Buying an $800 smartphone? There's no tax. A $2,100 refrigerator? Nope, no tax. The weekend deal saves Massachusetts consumers an estimated $20 million, according to media reports.
Several types of purchases don't qualify for the sales tax holiday, including cars, motorboats, restaurant meals, utilities, alcohol, tobacco products and marijuana.
Connecticut
When: Aug. 15-21
Connecticut's back-to-school tax holiday is the last on the calendar — and it's one of the longest.
The Federation of Tax Administrators says the state's shoppers get a weeklong break from sales taxes on purchases of clothing or footwear priced at less than $100.
The normal sales tax in the Nutmeg State is 6.35%, and the tax break could give you more money to invest or pay off debt. If you live in Connecticut — or in or near any of these states, for that matter — you'll want to put the tax holiday on your smartphone calendar now, and set yourself an alert.
