Sales Tax Holidays in 2020
Sixteen states are having sales tax holidays this year. If you plan your shopping around these tax-free periods, you can save big on back-to-school clothes, energy-efficient appliances, and more.
Sales tax holidays offer a great way to save money on back-to-school supplies, emergency preparedness kits, energy-saving appliance, and even hunting gear. Let's say you live in Norfolk, Va., and you're getting ready for the 2020 hurricane season. You have your eye on a portable home generator that costs $1,000 at the local hardware store. If you buy the generator in June, you'll pay an additional $60 in sales tax. But if you wait until August 7 to 9, when Virginia is having a tax-free weekend, you won't pay any sales tax at all. It's that easy!
Sixteen states have one or more sales tax holidays in 2020. If you plan your shopping around these tax-free periods, you can save big bucks on a wide range of items you're probably going to buy anyway. The dates for these no-tax holidays are scattered throughout the year. However, they typically fall on a weekend, but in some cases go on for an entire week. Here's a peek at the 16 states that offer sales tax holidays, as well as the products that qualify in each state. Unless otherwise noted, the exemptions cover both state and local sales taxes.
Sales tax rates and averaged combined state and local sales tax rates are from the Tax Foundation as of January 1, 2020
Alabama
- State sales tax rate: 4%
- Average combined state and local sales tax rate: 9.22%
- First sales tax holiday: Severe Weather Preparedness
- Dates of first holiday: February 21 to 23, 2020
- Second sales tax holiday: Back-to-School
- Dates of second holiday: July 17 to 19, 2020
- Go to Alabama's Full State Profile
Alabama has two 2020 sales tax holidays. The first tax-free weekend is for severe weather preparedness supplies. It runs from February 21 to 23, 2020. Covered items include batteries, cell phone chargers, flashlights, tarps, fire extinguishers, duct tape, plywood, ice packs, and other items selling for $60 or less. Portable generators and power cords selling for $1,000 or less are also exempt. A more complete list of covered items is on the Alabama Department of Revenue's website.
The second holiday is for back-to-school shopping. It starts on July 17 and ends on July 19, 2020. The sales tax exemption generally applies to clothing costing $100 or less, computers and related items priced up to $750, school supplies priced up to $50, and books costing $30 or less. For details on what is exempt and what is taxable, see the guidelines on the Alabama DOR's website.
Alabama counties and cities must opt in for the sales tax holidays to apply within their borders. The Alabama DOR posts lists of the participating local governments on its website (click on links to access): Severe Weather Preparedness and Back-to-School.
Arkansas
- State sales tax rate: 6.5%
- Average combined state and local sales tax rate: 9.47%
- Sales tax holiday: Back-to-School
- Dates: August 1 to 2, 2020
- Go to Arkansas's Full State Profile
Back-to-school shopping in Arkansas will be a little cheaper on the first two days of August this year. During the state's sales tax holiday, there's no sales tax on general clothing costing less than $100, various accessories priced below $50, school supplies (including art supplies), and school instructional materials. The exemption doesn't cover sewing equipment and supplies, protective equipment, sport or recreational equipment, belt buckles sold separately, computers and periphery equipment, software, and many other items. The Arkansas Department of Finance and Administration has a detailed list of what's exempt and what's taxable during the tax-free weekend on its website.
Connecticut
- State sales tax rate: 6.35%
- Average combined state and local sales tax rate: 6.35%
- Sales tax holiday: Back-to-School
- Dates: August 16 to 22, 2020
- Go to Connecticut's Full State Profile
Connecticut gives back-to-school shoppers a whole week to buy tax-free clothing and footwear. This year, it runs from August 16 to 22, 2020. However, the sales tax exemption only applies to items costing less than $100. In addition, the sales tax holiday doesn't provide an exemption for special clothing or footwear primarily designed for athletic activity or protective use, jewelry, handbags, luggage, umbrellas, wallets, watches, and similar accessories. Safety apparel is tax-free under a separate exemption. A more detailed list of what's exempt and what isn't can be found on the Connecticut Department of Revenue Service's website.
Florida
- State sales tax rate: 6%
- Average combined state and local sales tax rate: 7.05%
- First sales tax holiday: Disaster Preparedness
- Dates of first holiday: May 29 to June 4, 2020
- Second sales tax holiday: Back-to-School
- Dates of second holiday: August 7 to 9, 2020
- Go to Florida's Full State Profile
Floridians prepping for hurricane season can save a few bucks during the Sunshine State's disaster preparedness sales tax holiday, which runs from May 29 to June 4, 2020. Whether sales tax is waived on a particular item depends on the price of the item. For example, reusable ice packs are covered if they sell for $10 or less. Flashlights can't cost more than $20 to qualify for the sales tax exemption. Gas cans must be $25 or less, while batteries are exempt if they're priced no higher than $30. The list for items costing $50 or less includes radios, tarps, and bungee cords. The highest priced item – portable generators – can't cost more than $750 for the sales tax exemption to apply. For a complete list of qualifying items and prices, see the Florida Department of Revenue's website.
The state also has a back-to-school sales tax holiday from August 7 to 9, 2020. It applies to clothing, footwear, and backpacks costing $60 or less; school supplies costing $15 or less; and the first $1,000 of the price of personal computers or personal computer-related accessories. "Clothing" includes face masks, wallets and handbags, but not watches or jewelry. The tax exemption also doesn't apply to sales made in a theme park, entertainment complex, hotel, or airport. For examples of taxable and exempt items, see the Florida DOR's website.
Iowa
- State sales tax rate: 6%
- Average combined state and local sales tax rate: 6.94%
- Sales tax holiday: Back-to-School
- Dates: August 7 to 8, 2020
- Go to Iowa's Full State Profile
On August 7 and 8, 2020, no sales tax is owed on purchases in Iowa of clothing or footwear having a selling price of less than $100. The exemption applies to each article priced under $100 regardless of how many items are sold to a customer. However, it doesn't apply in any way to the price of an item selling for $100 or more. There's also a long list of specific items that don't qualify for the exemption, such as watches, jewelry, umbrellas, sporting equipment, and special clothing or footwear designed primarily for athletic activity. A detailed list of what's exempt and what's taxable can be found on the Iowa Department of Revenue's website.
Maryland
- State sales tax rate: 6%
- Average combined state and local sales tax rate: 6%
- First sales tax holiday: Energy-Efficient Appliances
- Dates of first holiday: February 15 to 17, 2020
- Second sales tax holiday: Back-to-School
- Dates of second holiday: August 9 to 15, 2020
- Go to Maryland's Full State Profile
Maryland is one of four states with a sales tax holiday for energy-efficient appliances. In 2020, the holiday runs from February 15 to 17. During that time, you can save 6% on Energy Star appliances, such as air conditioners, washers and dryers, furnaces, heat pumps, standard size refrigerators, and dehumidifiers. (Solar water heaters are tax-exempt in Maryland throughout the year.) The weekend sales tax exemption also applies to programmable thermostats, compact fluorescent light bulbs, and LED light bulbs.
There's also an annual back-to-school sales tax holiday in Maryland. This year's holiday goes from August 9 to 15, 2020. During the week-long event, there's no sales tax on certain clothing and footwear priced at $100 or less. The first $40 spent on a backpack or bookbag is also tax-free. Accessory items, except for backpacks, aren't exempt. There's a detailed list of taxable and exempt items on the Comptroller of Maryland's website.
Massachusetts
- State sales tax rate: 6.25%
- Average combined state and local sales tax rate: 6.25%
- Sales tax holiday: Wide Variety of Personal Items
- Dates: August 29 to 30, 2020
- Go to Massachusetts' Full State Profile
This is the king of sales tax holidays! On August 29 and 30, 2020, shoppers in Massachusetts can purchase most retail priced at $2,500 or less without having to pay sales tax. There are some exceptions, though. The sales tax holiday exemption does not apply to meals, motor vehicles, motorboats, telecommunications services, natural gas, steam, electricity, tobacco products, marijuana or marijuana products, or alcoholic beverages. The exemption also doesn't apply to purchases by businesses or purchases by individuals for business use. (Only sales to individuals for personal use or consumption are tax-free.)
Mississippi
- State sales tax rate: 7%
- Average combined state and local sales tax rate: 7.07%
- First sales tax holiday: Back-to-School
- Dates of first holiday: July 31 to August 1, 2020
- Second sales tax holiday: Hunting Supplies
- Dates of second holiday: August 28 to 30, 2020
- Go to Mississippi's Full State Profile
The Magnolia State has two sales tax holidays in 2020. First, there's a back-to-school holiday on July 31 and August 1 for clothing, footwear, and school supplies with a sales price of $100 or less. Accessories such as jewelry, handbags, wallets, watches, and the like do not qualify for the sales tax exemption. A list of tax exempt and taxable items can be found on the Mississippi Department of Revenue's website.
There's also a "Second Amendment" tax-free weekend in Mississippi when sales tax is waived on purchases of firearms, ammunition, and certain hunting supplies, such as archery equipment, gun and archery cases, gun and archery accessories, hearing protection, holsters, belts, and slings. The Mississippi DOR's website has a detailed list of taxable and exempt items.
Missouri
- State sales tax rate: 4.225%
- Average combined state and local sales tax rate: 8.18%
- First sales tax holiday: Energy-Efficient Appliances
- Dates for first holiday: April 19 to 25, 2020
- Second sales tax holiday: Back-to-School
- Dates for second holiday: August 7 to 9, 2020
- Go to Missouri's Full State Profile
Missouri's week-long "Show Me Green" sales tax holiday runs from April 19 to 25, 2020. During that period, state sales tax is not charged on purchases of Energy Star certified clothes washers and dryers, water heaters, dishwashers, air conditioners, furnaces, refrigerators, freezers, and heat pumps. The exemption is, however, limited to appliances costing $1,500 or less. Cities, counties, and special taxing districts can also participate in the sales tax holiday by enacting an ordinance exempting their local sales tax during the holiday (click on the city, county, and district links to see lists of participating local jurisdictions).
The state also has a tax-free weekend for certain back-to-school purchases. In 2020, this sales tax holiday begins on August 7 and ends August 9. During the holiday, the state sales tax is waived for sales of school supplies costing $50 or less, clothing priced up to $100, graphing calculators valued at $150 or less, computer software costing $350 or less, and personal computers and peripheral devices priced up to $1,500. Cities, counties, and special tax districts to choose whether they will participate in the Back-To-School Sales Tax Holiday. As with the "Show Me Green" holiday, cities, counties, and special taxing districts can opt in or out of this holiday for their local sales tax (click the city, county and district links to see lists of local jurisdictions not participating in the sales tax holiday).
New Mexico
- State sales tax rate: 5.125%
- Average combined state and local sales tax rate: 7.82%
- First sales tax holiday: Back-to-School
- Dates of first holiday: August 7 to 9, 2020
- Second sales tax holiday: Small Business Saturday
- Date of second holiday: November 28, 2020
- Go to New Mexico's Full State Profile
During New Mexico's back-to-school gross receipts (sales) tax holiday, no tax is levied on clothing or footwear priced at less than $100; computers costing up to $1,000; related computer hardware priced at $500 or less; book bags, backpacks, maps and globes valued at under $100; handheld calculators for under $200; and basic school supplies priced under $30. The tax exemption does not apply to watches, radios, CD players, headphones, sporting equipment, portable or desktop telephones, copiers, office equipment, furniture, or fixtures. The New Mexico Taxation and Revenue Department has a detailed list of what is or isn't covered on its website. The back-to-school holiday runs from August 7 to 9, 2020.
New Mexico also has a sales tax holiday on "Small Business Saturday," which is on November 28, 2020. On this day, the state's gross receipts (sales) tax doesn't apply to purchases of qualifying items at certain small business. The purchased item must cost less than $500. Examples of qualify items include clothing, accessories, sporting goods, camping equipment, tools, books, journals, paper, writing instruments, greeting cards, postcards, works of art, art supplies, floral arrangements, indoor plants, cosmetics, musical instruments, cookware, small home appliances, bedding, towels, bath accessories, furniture, toys, games, and electronics. To make sales on this day without collecting tax, a business must have its primary place of business in New Mexico and employ no more than 10 employees at any point during the year. Businesses that operate under a franchise agreement don't qualify.
Ohio
- State sales tax rate: 5.75%
- Average combined state and local sales tax rate: 7.17%
- Sales tax holiday: Back-to-School
- Dates: August 7 to 9, 2020
- Go to Ohio's Full State Profile
This year, Ohio's back-to-school sales tax holiday is from August 7 to 9, 2020. During the holiday, there's no sales tax on purchases of clothing priced at $75 or less, school supplies priced at $20 or less, and school instructional materials priced at $20 or less. Clothing accessories, protective equipment, sewing equipment and supplies, sports or recreational equipment, belt buckles, costume masks, patches and emblems, and items used in a trade or business are not exempt. The Ohio Department of Taxation has more information about what is or isn't exempt during the sales tax holiday on the FAQ section of its website.
Oklahoma
- State sales tax rate: 4.5%
- Average combined state and local sales tax rate: 8.94%
- Sales tax holiday: Back-to-School
- Dates: August 7 to 9, 2020
- Go to Oklahoma's Full State Profile
During Oklahoma's back-to-school sales tax holiday, sales of clothing or footwear are tax-free if the sales price is less than $100. The sales tax exemption doesn't apply to the sale of accessories (e.g., jewelry, handbags, luggage, umbrellas, wallets, watches, and other similar items), special clothing or footwear primarily designed for athletic activity, or to the rental of clothing or footwear. A nonexclusive list of "clothing" that is exempt from sales tax during the holiday is on the Oklahoma Tax Commission's website. This year's sales tax holiday is from August 7 to 9, 2020.
South Carolina
- State sales tax rate: 6%
- Average combined state and local sales tax rate: 7.46%
- Sales tax holiday: Back-to-School
- Dates: August 7 to 9, 2020
- Go to South Carolina's Full State Profile
This year, South Carolina's back-to-school sales tax holiday starts on August 7 and ends on August 9, 2020. On those three days, shoppers can skip paying sales tax on purchases of clothing, footwear, accessories, school supplies, computers, software, printers, and certain bed and bath supplies. The exemption does not, however, apply to sales of jewelry, cosmetics, eyewear, wallets, watches, furniture, or any item to be used in a trade or business. The rental of clothing or footwear is taxable, too. Additional examples of items that are both exempt and taxable items during the holiday are posted on the South Carolina Department of Revenue's website.
Tennessee
- State sales tax rate: 7%
- Average combined state and local sales tax rate: 9.53%
- First sales tax holiday: Back-to-School
- Dates of first holiday: July 31 to August 2, 2020
- Second sales tax holiday: Restaurants
- Dates of second holiday: August 7 to 9, 2020
- Go to Tennessee's Full State Profile
Tennessee has the highest average combined state and local sales tax rate in the country at 9.53%. But back-to-school shoppers can dodge that extra expense on selected items if they shop during the state's sales tax holiday, which runs from July 31 to August 2, 2020. Clothing, footwear, and school supplies (including art supplies) priced at or below $200 are tax-free during the holiday, as are electronic devices costing $3,000 or less. While clothing qualifies for the exemption, clothing accessories, protective equipment, and sport or recreational equipment do not. The exemption also doesn't apply to computer software, school instructional materials, household appliances, items used in a trade or business, or to items that are rented. A more complete list of exempt items can be found on the Tennessee Department of Revenue website.
There's also a new sales tax holiday in 2020 for food and drinks sold by restaurants. This is a one-time holiday starting on August 7 and ending on August 9, 2020. Only restaurants with a seating capacity of at least 40 patrons qualify for the holiday. "Limited service restaurants" – establishments that sell alcoholic beverages and food, with a majority of revenue coming from alcohol – also qualify if they have a seating capacity of at least 40.
Texas
- State sales tax rate: 6.25%
- Average combined state and local sales tax rate: 8.19%
- First sales tax holiday: Emergency Preparation Supplies
- Dates of first holiday: April 25 to 27, 2020
- Second sales tax holiday: Energy-Efficient Appliances
- Dates of second holiday: May 23 to 25, 2020
- Third sales tax holiday: Water-Saving Products
- Dates of third holiday: May 23 to 25, 2020
- Fourth sales tax holiday: Back-to-School
- Dates of fourth holiday: August 7 to 9, 2020
- Go to Texas' Full State Profile
Maybe it's just Texas being Texas, but the Lone Star State has more sales tax holidays than any other state – four of them are on the books for 2020. The first holiday, which is for emergency preparation supplies, goes from April 25 to 27, 2020. During the holiday, you won't pay sales tax on purchases of certain supplies needed to cope with natural disasters like hurricanes, flash floods, and wildfires. There are price limits on the supplies that qualify for the holiday tax exemption. For example, portable generators must cost less than $3,000, and emergency ladders and hurricane shutters must be priced below $300. The price limit is $75 for things like axes, batteries, can openers (nonelectric), carbon monoxide detectors, coolers and ice chests for food storage, fire extinguishers, first aid kits, flashlights and other portable light sources, fuel containers, ground anchor systems and tie-down kits, hatchets, ice products, mobile phone batteries and chargers, plastic sheeting, radios, smoke detectors, and tarps.
Next up is the state's sales tax holiday for energy-efficient products, which runs through Memorial Day weekend (May 23 to 25, 2020). During the tax-free weekend, you can skip taxes on the purchase, rental, or lease of Energy Star-labeled air conditioners with a sales price of $6,000 or less, refrigerators with a sales price of $2,000 or less, ceiling fans, incandescent and fluorescent light bulbs, clothes washers, dishwashers, dehumidifiers, and programmable thermostats. (Thermostats must receive Energy STAR labels before 2010.) No sales tax exemption is available for water heaters, clothes dryers, freezers, stoves, attic fans, heat pumps, wine refrigerators, kegerators, or beverage chillers.
Also during the Memorial Day weekend (May 23 to 25, 2020), Texans can avoid sales tax on purchases of water-saving products that result in water conservation or groundwater retention, water table recharge, or a decrease in ambient air temperature that limits water evaporation. Examples of products that qualify for the sales tax exemption include soaker or drip-irrigation hoses; moisture controls for a sprinkler or irrigation system; mulch; rain barrels or other rain/moisture collection systems; permeable ground cover surfaces that allows water to reach underground basins, aquifers or water collection points; grasses, plants, shrubs or trees; and water-saving surfactants designed to help water penetrate the soil.
Texas wraps up its 2020 sales tax holiday schedule with a tax-free weekend for back-to-school shopping from August 7 to 9. During this annual holiday, you can buy most clothing, footwear, school supplies, and backpacks without having to pay sales tax as long as the item purchased is sold for less than $100. The Texas Comptroller's office has lists of exempt and taxable items for clothing, footwear and other items and for school supplies on its website.
Virginia
- State sales tax rate: 5.3% (includes mandatory 1% local tax)
- Average combined state and local sales tax rate: 5.65%
- Sales tax holiday: Multiple Product Categories
- Dates: August 7 to 9, 2020
- Go to Virginia's Full State Profile
Virginia only has one sales tax holiday, but they pack a lot into one tax-free weekend. During the three-day period, you can buy qualifying school supplies, clothing, footwear, hurricane and emergency preparedness items, energy-efficient appliances, and water-saving products without paying sales tax. However, for purchases to be tax-free, the items sold cannot exceed certain price limits. For instance, school supplies can't be sold for more than $20, and clothing and footwear must be priced at $100 or less. For hurricane and emergency preparedness products, portable generators can't cost more than $1,000, gas-powered chainsaws must be sold for $350 or less, chainsaw accessories must be priced at or below $60, and other hurricane preparedness items can't be sold for more than $60. Energy-efficient (Energy Star) and water-saving (WaterSense) products can't be priced above $2,500. The Virginia Department of Taxation has lists of exempt and taxable school supplies, clothing, and footwear; hurricane and emergency preparedness products; and Energy Star and WaterSense products on its website (click on links to view lists).
