Back-to-School Sales Tax Holidays: Does Your State Have One, and How Much Could You Save?

Back-to-school sales tax holidays tend to fall on popular shopping weekends in late July or early August — depending on the state — and eliminate tax on items consumers might need to prepare for the new school year. These can include clothing, computers and computer software, school supplies, books and more.

Back-to-school tax holidays allow parents to score big savings on school-year essentials, ease the cost of key items for college students, and help everyone save money on a broad variety of goods.

Key Takeaways:

• Sixteen states in the U.S. currently have back-to-school sales tax holidays.
• Alabama, Missouri and Arkansas offer savings on products in seven or more back-to-school categories — the most compared to all other states.
• Different states offer tax exemptions on different products, so be sure to familiarize yourself with the items that qualify where you live before you set out with your shopping list.
• Each state has its own spending maximums, which can factor into your total savings.
• While tax holidays can help families with back-to-school budgeting, our expert notes that consumers may run into some pitfalls when shopping across state lines.

Unfortunately, back-to-school tax holidays aren't available in every state. State Legislation determines annual sales tax holidays, so it’s up to state officials whether your state will hold a sales tax holiday or not.

There are many reasons why a state might not hold a back-to-school tax holiday. For example, Oregon does not impose a sales tax year-round, so there is no need for a tax holiday during the back-to-school season. Consumers that don’t live in a state that offers sales tax exemptions will need to adjust accordingly when planning their finances and back-to-school budgets.