Does your state offer a tax free holiday? This event is typically the first weekend in August, seemingly because it is shortly before the beginning of the school year but does vary from state to state. A sales tax holiday allows shoppers to purchase clothing and shoes, and some other items, and save money by not paying sales tax.
Each year this holiday becomes a bigger event as more and more people figure out it’s a terrific way to save a little money and not have to pay the government too.
However, it’s important not to assume that every purchase you make will be tax free. Or that every purchase is a bargain. Not all school supplies, backpacks and lunch boxes are tax free. Neither are many other items that you might wish to purchase for back to school. And it completely varies from state to state.
Most clothing is tax free though, except in some states there is a maximum price tag on the item. Included typically in this tax free event are infant clothing, dresses, shoes, jeans, pajamas, shirts and many more items. Typically not included are jewelry, purses, hair accessories, scarves and more, though again this varies from state to state.
Many states also allow the purchase of computers and computer equipment during this weekend event, as well, but some have a maximum price tag.
You can see below which states participate in the tax free weekend, however Tennessee, Alabama and Virginia are new this year, in 2006. And Maryland is offering a tax break again for the first time since 2001.
Other interesting information is that New York, the first state to offer a sales tax holiday in 1997, switched in the year 2000 to a permanent sales tax exemption on clothing and shoes under $110. That’s pretty cool!
The following states will participate in the tax free weekend:
Alabama
August 4-6, 2006
Tax Free Items Include:
- Clothes under $100.00
- Books under $30.00
- School Supplies under $50.00
- Computers and equipment under $750.00
Connecticut
August 20-26, 2006
Tax Free Items Include:
- Clothes and shoes under $300.00
Florida
July 22-30, 2006
Tax Free Items Include:
- School Supplies under $10.00
- Clothes under $50.00
- Books under $50.00
Georgia
August 3-6, 2006
Tax Free Items Include:
- School supplies under $20.00
- Energy efficient appliances under $1500.00
- Clothes under $100.00
- Computers and equipment under $1500.00
Iowa
August 4-5, 2006
Tax Free Items Include:
- Clothes and shoes under $100.00
Maryland
August 23-27, 2006
Tax Free Items Include:
- All clothes and shoes under $100.00
Missouri
August 2-6, 2006
Tax Free Items Include:
- Clothes under $100.00
- School supplies under $50.00
- Computers and equipment under $3500.00
- Software under $350.00
New Mexico
August 4-6, 2006
Tax Free Items Include:
- All clothes and shoes under $100.00
- School supplies under $15.00
- Computers under $1000.00
- Computer equipment under $500.00
New York
Every day of the year is tax-free!
Tax Free Items Include:
- Clothes and shoes under $110.00
North Carolina
August 4-6, 2006
Tax Free Items Include:
- Clothes, shoes, and school supplies under $100.00
- Sports and recreation equipment under $50.00
- Computers under $3500.00
- All Computer equipment under $250.00
South Carolina
August 4-6. 2006
Tax Free Items Include:
- Clothes
- Accessories
- Shoes
- School supplies
- Computers and equipment
Tennessee
August 4-6, 2006
Tax Free Items Include:
- Clothes under $100.00
- School supplies under $100.00
- Computers under $1500.00
Texas
August 4-6, 2006
Tax Free Items Include:
- Clothing and shoes under $100.00
- Texas allows you to apply this to layaway items (that is just so cool!)
Virginia
August4-6, 2006
Tax Free Items Include:
- Clothes and shoes under $100.00
- School supplies under $20.00
Washington D.C.
August 4-6, 2006
Tax Free Items Include:
- Clothes under $100.00
- Accessories under $100.00
- Shoes under $100.00
- School supplies under $100.00
- This also includes layaway items