Dating back to the 1980s, when the US states of Ohio and Michigan introduced one-time tax breaks for car purchases, sales tax holidays were later popularized by New York's 1997 decision to implement the first clothing sales tax holiday.

Facing the situation where its residents went to other states, mainly New Jersey, to buy clothes with lower sales tax rates, New York officials decided to address this issue of cross-border shopping by implementing a sales tax holiday. By doing so, they made it possible for residents to buy clothing with lower sales taxes in specific periods of the year without reducing the state's overall sales tax rate.

Understanding Sales Tax Holidays in the US

Generally speaking, sales tax holidays are periods in the year when some US states allow tax-free purchases of certain eligible items. This means that customers do not have to pay sales tax on all products purchased during these holiday periods, which states usually implement to stimulate consumer spending.

There are no specific rules for when the sales tax holiday must occur, so it is spread throughout the year, with most held in July and August, coinciding with the beginning of the school year. Besides these so-called "back-to-school" sales, there are also sales holidays for items related to severe weather preparedness in earlier months of each year. The Second Amendment holidays, which usually last for three days, occur before the start of hunting season in the early fall.

Each US state is free to determine when the sales tax holidays will happen and how long they will last. Most sales tax holidays last 3 days, though some may last longer in certain states. In addition, sales tax holidays may occur once a year or be an annual event.

Sales tax holiday periods are incredibly challenging for online sellers registered to collect tax in a state with a sales tax holiday. Online sellers must pay close attention to sales tax holiday regulations, including the applicable rules for transactions occurring at the start and end of the period, based on that state's time zone.

US Sales Tax Holidays by States

Even though sales tax holidays are gaining popularity, only 21 US states are holding or will hold one in 2026. Sales tax holidays vary by state and may change. 

State Sales Tax Holidays in 2026

Since the names, dates, and items covered vary by state, the table below provides general information on sales tax holidays in 2026 for US states that observe them.

State

Type

Dates

Items Included

Alabama

Annual Severe Weather Holiday

February 20–22, 2026

  • Hurricane preparedness generators of up to USD 1,000 
  • Supplies priced at USD 60 less

Alabama

Annual Back-to-School Holiday

July 17–19, 2026

  • Clothing – USD 100 or less per article (excluding accessories and protective or recreational equipment)
  • Single purchases of USD 750 or less of computers, computer software, and school computer supplies
  • Non-commercial school supplies – USD 50 or less per item
  • Non-commercial purchases of books – USD 30 or less per item

Alaska

Municipality of Skagway Retail Sales Tax Holiday

October 1, 2025–March 31, 2026

All retail tangible goods

Arkansas

Annual Back-to-School Holiday

August 1–2, 2026

  • Clothing and footwear – less than USD 100 per item
  • Clothing accessories and equipment – less than USD 50 per item
  • School supplies, school art supplies, and school instructional materials

Connecticut

Annual Back-to-School Holiday

August 16–22, 2026

Clothing and footwear – Less than USD 100 per item (excluding clothing accessories and protective or athletic clothing).

Florida

Back-to-School Holiday

August 1–31, 2026

  • School supplies with a sales price of USD 50 or less per item
  • Items having a sales price of USD 100 or less per item
  • Personal computers or personal computer-related accessories with a sales price of USD 1,500 or less

Florida

Hunting, Fishing, and Camping Sales Tax Holiday

TBA

Savings on camping, fishing, and hunting supplies, and provides opportunities for tax-free savings for Floridians exercising their constitutional right to hunt and fish.

Iowa

Annual Back-to-School Holiday

August 7–8, 2026

Clothing and footwear – less than USD 100 per item

Louisiana

Second Amendment Weekend Holiday

September 4–6, 2026

Firearms, ammunition, and hunting supplies, including archery items, hunting apparel, accessories, and safety equipment.

Maryland

Annual Energy Star Holiday

February 14–16, 2026

Sales of Energy Star products and solar water heaters

Maryland

Annual Back-to-School Holiday

August 9–15, 2026

Clothing and footwear – less than USD 100 per item

Massachusetts

Annual Sales Tax Holiday

TBA

Non-business sales at retail of single items of tangible personal property costing USD 2,500 or less are exempt from sales and use taxes, subject to certain exclusions

Mississippi

Annual Back-to-School Holiday

July 10–12, 2026

  • Clothing and footwear – less than USD 100 per item.
  • School supplies – less than USD 100 per item.

Mississippi

Annual 2nd Amendment Holiday

August 28–30, 2026

Firearms, ammunition, and hunting supplies, including archery items, hunting apparel, accessories, and safety equipment.

Missouri

Annual Back-to-School Holiday

August 7–9, 2026

  • Clothing – USD 100 or less per item 
  • School supplies – USD 50 or less per item
  • Computer Software priced at USD 350 or less per item, and computer peripheral devices priced at USD 1,500 or less

Missouri

Annual Energy Star Holiday

April 19-25, 2026

All retail sales of Energy Star-certified new appliances of up to USD 1,500 per appliance

Nevada

National Guard Member Holiday

October 30–November 1, 2026

Applicable to purchases of National Guard members

New Mexico

Annual Back-to-School Holiday

July 31–August 2, 2026

  • Clothing and footwear items – less than USD 100 per item
  • School supplies – less than USD 30 per item
  • Computers, e-readers that have computing functions, and tablets – USD 1,000 or less per item
  • Certain computer-related items – USD 500 or less per item
  • Book bags, backpacks, maps, and globes – less than USD 100 per item
  • Handheld calculators – less than USD 200 per item

New Mexico

Small Business Saturday Gross Receipts Tax Holiday

TBA

This applies to sales made by a seller that carries on trade or business in New Mexico, maintains its primary place of business in New Mexico, employs no more than ten employees at any one time during the previous fiscal year, and is not a franchise.


This deduction applies only to receipts from sales of the specified items.

Ohio

Annual Sales Tax Holiday

TBA

In 2024, the holiday scope was expanded to apply to all tangible personal property priced at USD 500 or less.

Oklahoma

Annual Back-to-School Holiday

August 7–9, 2026

Clothing and footwear – less than USD 100 per item 

Puerto Rico

Hurricane Preparedness Sales Tax Holiday

TBA

  • Portable generators priced at USD 3,000 or less
  • Specified hurricane preparedness items

Puerto Rico

Annual Back-to-School Holiday

January 2, 2026 - January 3, 2026, July 2026 Dates TBD

Applies to school supplies, school uniforms and footwear

South Carolina

Annual Back-to-School Holiday

August 7–9, 2026

  • Clothing and certain clothing accessories 
  • Footwear
  • School supplies
  • Computers, printers, printer supplies, and computer software 
  • Certain bed and bath items

Tennessee

Annual Back-to-School Holiday

July 24–26, 2026

  • General apparel that costs USD 100 or less per item
  • School and art supplies with a purchase price of USD 100 or less per item
  • Computers, laptop computers, and tablet computers for personal use with a purchase price of USD 1,500 or less

Texas

Emergency Preparation Supplies Holiday

April 25–27, 2026

  • Portable generators – less than USD 3000 per item
  • Hurricane shutters and emergency ladders – less than USD 300 per item
  • Other specified emergency preparation supplies – less than USD 75 per item

Texas

Annual Energy Star Holiday

May 23–25, 2026

  • Energy Star-qualified air conditioners priced at USD 6,000 or less, refrigerators priced at USD 2,000 or less, adn other similar products,
  •  Water-saving products

Texas

Water Efficient Products Sales Tax Holiday

May 23–25, 2026

  • Any product that displays a WaterSense Logo or Label
  • Certain specified water-conserving products for residential properties

Texas

Annual Back-to-School Holiday

August 7–9, 2026

  • Clothing and footwear – less than USD 100 per item 
  • Most school supplies – less than USD 100 per item

Virginia

Three-Day Sales Tax Holiday

August 7–9, 2026 

  • School supplies – USD 20 or less per item
  • Clothing and footwear – SUD 100 or less per item
  • Portable generators – USD 1,000 or less per item
  • Gas-powered chainsaws – USD 350 or less per item
  • Chainsaw accessories – USD 60 or less per item
  • Other specified hurricane preparedness items – USD 60 or less per item
  • Qualifying Energy Star or WaterSense products purchased for a non-commercial home or personal use – USD 2,500 or less per item

West Virginia

Annual Back-to-School Holiday

July 31–August 3, 2026

  • Clothing items priced at USD 125 or less
  • School supplies items priced at USD 50 or less
  • School instruction materials priced at USD 20 or less
  • Laptop and tablet computers, not purchased for use commercial purposes, priced at USD 500 or less
  • Sports equipment not purchased for commercial purposes, priced at USD 150 or less

Conclusion

Sales tax holidays can be divided into several categories based on the items they include. The most common sales holiday is back-to-school. While sales holidays provide consumers with perceived savings and offer politically advantageous opportunities for elected officials, they also have economic inefficiencies and mixed outcomes. As states continue experimenting with different tax holiday forms, their effectiveness and impact remain debatable.

Source: Tax Foundation - Sales Tax Holiday, Sales Tax Institute - What are Sales Tax Holidays, Federation of Tax Administrators, Tax Institute - Sales Tax Holidays