Everything to Know About Tax Free Holidays
Every year, some states hold tax free holidays to give consumers a break on paying sales tax. This break applies in stores and with online purchases. The exemptions are only for qualifying items, typically for back-to-school and emergency preparation, but other consumer goods may be included as well. In some states, computers or household appliances qualify.
Many states tax breaks start on a Friday and run through the weekend. However, this differs from state to state. Many states have sales taxes in place, with some having local taxes as well. Most of the exemptions cover both state and local sales taxes, but this depends, so it is important to find out the difference.
When shopping online, tax exemptions should apply, so long as they follow the rules of the applicable state. Some large online retailers, such as Amazon, are familiar with each state’s rules and will automatically take the sales tax off eligible purchases on the appropriate dates.
New York started the first modern sales tax holiday in 1997. Since then, more states have established sales tax holidays through legislation, setting the specific time frames, qualifying items, and price caps. For example, some states, such as Texas, hold multiple sales-tax holidays in a given year.
To take advantage of this tax break, find out if and when your state offers it and how long it lasts. Planning what you need ahead of time could help make sure you receive the tax exemption. A few states hold the tax free weekend in July, but most are held in August. As a parent or a student, it can be especially useful in saving on school items.
For example, Connecticut’s sales tax holiday begins August 15 and ends August 21 this year. However, it only applies to items costing less than $100. More can be found out at the Connecticut Department of Revenue Service’s website.
Tax holidays are established through state legislation, check out your state’s website to find the most up-to-date details.
You can review the 2021 - 2022 Sales Tax Holiday information below: