What are sales tax holidays, and why do states implement them?

Sales tax holidays are periods when states exempt certain items from sales tax to stimulate consumer spending. Consumers buying eligible products during these periods do not have to pay sales tax. States implement these holidays to encourage economic activity and provide financial relief to residents.

Why are sales tax holidays most commonly held in July and August?

Sales tax holidays are most commonly held in July and August to coincide with "back-to-school" sales. This timing encourages families to shop for school supplies, clothing, and other essentials ahead of the new school year.

How long do sales tax holidays typically last?

Sales tax holidays typically last three days, although some states may extend the duration depending on their specific legislation and objectives

Are online sellers required to comply with sales tax holidays?

Yes, online sellers registered to collect tax in a state with a sales tax holiday must comply with the holiday's regulations. This includes applying the rules for transactions according to the state's time zone during the holiday period's start and end.

How many US states will hold sales tax holidays in 2024?

In 2026, more than 20 US states will hold sales tax holidays. These holidays vary by state and can include different items and durations.

What are some examples of items commonly exempted during sales tax holidays?

Clothing, school supplies, hurricane preparedness items, and recreational equipment are commonly exempted during sales tax holidays.

Comprehensive Guide to Navigating US Sales Tax Holidays

Summary

Sales tax holidays are periods when US states exempt sales tax on certain items, primarily to stimulate consumer spending, with "back-to-school" being the most common type, usually held in July and August.
The holidays vary by state, with different dates, durations (typically three days), and eligible items (e.g., clothing, school supplies, computers, emergency-preparation supplies), often subject to price limits.
In 2026, 21 US states are holding sales tax holidays, and online sellers registered in those states are required to comply with the specific state's holiday regulations.

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