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Sales tax holidays are becoming increasingly popular. In 2023, approximately 45 sales tax holidays were held across 24 states, with expectations for even more in 2024. If you're in retail, it's essential to stay informed about these events.
A sales tax holiday is a designated period when consumers can purchase specific goods without paying sales tax. These holidays usually last for a day, weekend, or week, although some have extended for months or even years, such as in Florida and Tennessee.
During a sales tax holiday, retailers who normally collect sales tax are exempt from doing so on eligible items. This exemption applies to purchases made in-store, online, by mail, or through other methods. Retailers are generally prohibited from collecting sales tax on qualifying sales during this period.
What states are having a tax free weekend?
Sales tax holidays, also known as tax-free holidays, weekends, weeks, or events, vary by state. While not all states offer them, any state with a statewide sales tax could potentially establish one. They are politically popular because consumers appreciate the temporary relief from sales tax.
Most states hold annual sales tax holidays, but some events are one-offs. For instance, Florida doesn't have a set annual tax holiday but typically offers at least one per year, often more.
Here is the list of states that have tax free weekend:
- Alabama
- Arkansas
- Connecticut
- Florida
- Iowa
- Louisiana
- Maryland
- Massachusetts
- Mississippi
- Missouri
- Nevada
- New Jersey
- New Mexico
- Ohio
- Oklahoma
- South Carolina
- Tennessee
- Texas
- Virginia
- West Virginia
Local sales tax holidays can also occur in home rule states, where local governments manage local taxes. In 2023, several Alaskan communities held tax-free events, with more planned for 2024.
Each sales tax holiday is unique, but many follow specific themes. Back-to-school tax holidays, which exempt school supplies and clothing, are among the most popular. There are also tax-free periods for disaster preparedness supplies, Energy Star appliances, water-saving products, and even firearms and hunting supplies.
For disaster preparedness holidays, items like batteries, coolers, generators, and tarps are usually tax-exempt. Second-amendment tax-free weekends typically include firearms, ammunition, and certain safety devices, although gun safes may not always qualify.