Sales tax holidays for the rest of the year

Your compliance obligations are tough enough given the almost dizzying variety of rates, filing frequencies and other seemingly random details of the states that have a sales tax.

One of those biggest details you sure can’t ignore: sales tax holidays. They’ve have been around for decades, but only recently have these brief periods of tax breaks gained widespread traction, usually as political tools to give constituents supposed relief. About half the states with a sales tax have these holidays where certain items go tax-free for set times of the year. Purchases are often capped by dollar amount; local sales taxes are sometimes not waived.

The situation keeps changing, too: Florida recently expanded its holiday on emergency-preparedness gear; New Jersey recently repealed a couple of theirs. Ignoring or miscalculating your obligations during these holidays in states where you have economic nexus can be as big a compliance issue as failing to collect sales tax altogether. Some holidays have passed already for 2025, but what’s to know about those in various states for the rest of year?

Computers to towels to chainsaws

Some tangible personal property (TPP) have become regular stars in sales tax holidays, and many of these holidays are coming right up. It’s worth verifying now if your products fall within exempt categories in states where you have a large volume of sales. Here’s an overview:

General: Massachusetts (most TPP up to $2,500 per item) Aug. 9-10; Ohio (TPP up to $500) Aug. 1-14; Virginia (Qualifying Energy Star or WaterSense products for noncommercial home or personal use costing up to $2,500 per item) Aug. 1-3.

Back-to-school supplies. Backpacks, writing instruments, notebooks and the like are sales tax-free in Alabama (some clothing up to $100 per item, computers and related supplies up to $750, books up to $30, general supplies up to $50 per item, July 18-20); Arkansas Aug. 2-3; Florida (clothing to $100, general supplies up to $50, computers up to $1,500) Aug. 1-31; Missouri (clothing up to $100, general supplies up to $50, among others) Aug. 1-3; New Mexico (clothing to $100, general supplies up to $30, computers and hardware up to $500 to $1,000) July. 25-27; South Carolina (clothing and footwear, supplies [including some bed and bath], computers), Aug.1-3; Tennessee (clothing costing up to $100, general supplies up to $50, computers up to $1,500) Aug. 1-31; Texas (costing up to $100), Aug. 8-10; Virginia (up to $20 per item) Aug. 1-3; West Virginia (supplies up to $50 per item, instructional material up to $20, certain laptops and tablets up to $500) Aug. 1-4.

(Mississippi and Louisiana might also have a back-to-school holiday this year, though neither state has yet scheduled one.)

Clothing. Connecticut (certain clothing and footwear costing up to $100), dates TBA; Iowa (certain clothing and footwear up to $100 in cost), Aug. 1-2; Maryland (clothing and footwear $100 or less, qualifying bookbags and backpacks up to $40), Aug. 10-16; Oklahoma (clothing or footwear costing up to $100) Aug.1-3; Texas (costing up to $100), Aug. 8-10; Virginia (up to $100 per item) Aug. 1-3; West Virginia (costing up to $125 per item) Aug. 1-4.

Emergency preparedness. Florida, where the break is now permanent for emergency gear and some tools; Texas (some protective masks costing up to $100), Aug. 8-10; Virginia (portable generators costing up to $1,000 per item, gas-powered chainsaws up to $350, chainsaw accessories up to $60 per item, other specified hurricane-preparedness items up to $60) Aug. 1-3.

Sports and recreational equipment. Florida (tents up to $200, stoves, chairs and sleeping bags up to $50, lanterns and flashlights up to $30, ammunition and firearms, crossbows and supplies, fishing supplies) Sept. 1-Dec. 31; Mississippi (hunting firearms and ammunition and some accessories) Aug. 29-31; West Virginia (up to $150 per item) Aug. 1-4.

No, you didn’t need another thing to think about concerning your sales tax compliance, but states take these holidays seriously and are likely to keep expanding them.

TaxConnex can help your business stay on top of your taxability and ensure you maintain sales tax compliance in an ever-changing environment. Get in touch to learn how we can help you!