Here’s one way that overtaxed parents can find some relief while buying school supplies: skipping the sales tax.
Back-to-school shopping is expected to reach an all-time high of $41.5 billion this year, up nearly $5 billion from last year, according to the National Retail Federation’s 2023 expectations. Average spending on back-to-school shopping per household is estimated to hit a high of $890.07 — $25 more than last year’s record.
Back-to-college shoppers also plan on spending more on things like electronics and dorm or apartment essentials this year, with 43% saying their increased expenditure is due to a need for more items, the NRF added.
And with big spending on school necessities comes a heightened desire to get the best deals possible — which is where tax-free holidays come in.
More than a dozen states that normally charge sales tax are holding weekend or week-long events over the next month or so that nix the sales tax from items that often pop up on school supplies lists.
So for those still looking to save on clothes, supplies and electronic devices this back-to-school shopping cycle, the summer 2023 sales tax-free holiday season officially starts Friday, July 21, and runs through Sept. 4th.
“When you can take advantage of a sale on top of a 6% to 8% discount on sales-tax elimination, you’re talking about a pretty sizable chunk of change,” Marshal Cohen, the chief industry advisor at Circana, a consumer behavior and retail industry company, told MarketWatch.
Katherine Cullen, the NRF vice president of industry and consumer insights, agreed. “Particularly with higher prices and inflation, even though people still feel comfortable spending, they are looking to make every dollar count,” she told MarketWatch.
Some shoppers have gotten an early start on saving, with 55% already making back-to-school purchases as of early July during sales events like Amazon
AMZN,
Prime Day and Target
TGT,
Circle Week, the NRF said.
Related: Amazon’s Prime Day sales were driven by discounts — but inflation played a key role, too
Read more: Amazon saw its best sales performance ever on first day of Prime Day
And Alabama — where students go back to school the first week of August — begins its sales tax-free celebrations on Friday. So back-to-school shopping is already in full swing there.
“I just expect that this year there’s going to be a lot of folks out shopping and trying to get some deals before school,” Nancy Dennis, the director of public relations at the Alabama Retail Association, told MarketWatch.
Dennis said many Alabama businesses participating in the holiday started their sales earlier this week, and some plan to extend their hours through the weekend.
But for those who don’t live in Alabama, or one of the other states listed below, shoppers can still take advantage of back-to-school deals by simply traveling to the participating states to do their shopping. And Alaska, Delaware, Montana, New Hampshire and Oregon don’t ever charge sales tax, so shoppers can take a trip to do some tax-free shopping in those states, too.
So here’s the list of all 17 states holding sales tax-free holidays this summer, which have been drawn from the Federation of Tax Administrations website.
Alabama
When: July 21-23
What’s for sale: Clothing up to $100 per item; computers and computer software up to $750 per single purchase; school supplies for up to $50; books for up to $30. See the complete list here.
Arkansas
When: Aug. 5-6
What’s for sale: Clothing up to $100 per item; clothing accessories or equipment up to $50 per item; electronic devices with no maximum price per item; school supplies including art supplies and instructional materials with no maximum per item. See the complete list here.
Connecticut
When: Aug. 20-26
What’s for sale: Clothing and footwear (excluding accessories and protective or athletic clothing) up to $100 per item. See the complete list here.
Florida
When: July 24-Aug. 6
What’s for sale: Learning aids and jigsaw puzzles up to $30 per item; most school supplies up to $50 per item; clothing, footwear and accessories up to $100 per item; computers and related accessories up to $1,500 per single purchase. See the complete list here.
Iowa
When: Aug. 4-5
What’s for sale: Clothing and footwear for up to $100 per item. See the complete list here.
Maryland
When: Aug. 13-19
What’s for sale: Clothing and footwear up to $100 per item; backpacks and book bags for the first $40 per item. See the complete list here.
Massachusetts
When: Aug. 12-13
What’s for sale: All tangible personal property up to $2,500 (not including vehicles, food, alcohol, gas, certain utilities, tobacco, marijuana). See the complete list here.
Mississippi
When: July 28-29
What’s for sale: Clothing, footwear and accessories up to $100 per item. See the complete list here.
Missouri
When: Aug. 4-6
What’s for sale: Clothing and diapers up to $100 per item; computers and other electronic devices up to $1,500 per single purchase; graphing calculators up to $150 per item; computer software up to $350 per single purchase; school supplies up to $50 per item. See the complete list here.
New Jersey
When: Aug. 26-Sept. 4
What’s for sale: School and art supplies with no maximum price per item; instruction materials with no maximum price per item; computers up to $3,000 per single purchase. See the complete list here.
New Mexico
When: Aug. 4-6
What’s for sale: Clothing, diapers and footwear up to $100 per item; computers up to $1,000 per single purchase; computer equipment up to $500 per item; school supplies up to $30 per item. See the complete list here.
Ohio
When: Aug. 4-6
What’s for sale: Clothing up to $75 per item; school supplies up to $20 per item; school instructional materials up to $20 per item. See the complete list here.
Oklahoma
When: Aug. 4-6
What’s for sale: Clothing and footwear up to $100 per item. See more information here.
South Carolina
When: Aug. 4-6
What’s for sale: Computers, school supplies and clothing at no maximum price per item. See more information here.
Tennessee
When: July 28-30
What’s for sale: Clothing and footwear up to $100 per item; school and art supplies up to $100 per item; computers up to $1,500 per single purchase. See the complete list here.
Texas
When: Aug. 11-13
What’s for sale: Clothing, footwear, diapers, backpacks and school supplies up to $100 per item. See the complete list here.
West Virginia
When: Aug. 4-7
What’s for sale: Clothing up to $125 per item; school supplies up to $50 per item; sports equipment up to $150 per item; instructional materials up to $20 per item; computers or tablets up to $500 per single purchase. See the complete list here.
Unfortunately, any states not listed above do not participate in sales tax-free holidays.
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