Summary: Sixteen states held sales tax holidays in recent years, most clustered around back-to-school shopping in late July and August. Typical exemptions cover clothing under $100, school supplies under $50, and computers under $1,500, with exact caps varying by state. Florida, Texas, and Tennessee run the largest programs; several states add hurricane-preparedness or Energy Star holidays. Retailers must reprogram registers for the weekend and honor the caps exactly.
For one weekend a year, a dozen-plus states switch off the sales tax on selected goods. The back-to-school holiday is the big one, but states also run holidays for hurricane supplies, Energy Star appliances, and even guns and hunting gear. Here is how the 2026 holidays work and the caps that decide what is actually exempt.
The classic sales tax holiday lands on a weekend in late July or early August and targets school shopping: clothing, footwear, school supplies, and sometimes computers. The caps are the whole game. A typical structure exempts clothing items priced under $100 each, school supplies under $50, and computers under $1,500, but every state writes its own numbers. A $120 jacket is fully taxable in a $100-cap state; splitting it across two transactions does not help, because the cap applies per item.
States with 2026 back-to-school holidays include Florida, Texas, Tennessee, Alabama, Arkansas, Connecticut, Iowa, Maryland, Massachusetts, Mississippi, Missouri, New Mexico, Ohio, Oklahoma, South Carolina, and Virginia, with dates and caps varying. Ohio's is among the most generous, covering most tangible goods under $500. Always check the current year's proclamation: legislatures add, drop, and reshape holidays, and a few states have skipped years.
Florida and Texas run hurricane-preparedness holidays, typically in late spring, exempting batteries, generators, tarps, coolers, and similar supplies up to per-item caps. Several states run Energy Star or WaterSense holidays for efficient appliances. Louisiana, Mississippi, and Tennessee have run Second Amendment holidays exempting firearms and hunting supplies. The pattern is consistent: the state picks a policy goal, writes per-item caps, and gives retailers a weekend to implement.
For shoppers: the exemption applies to the item price before coupons in most states, layaway and rain checks have special rules, and online orders placed during the holiday generally qualify if the order is accepted during the window. For sellers: registers and carts must be reprogrammed for the exact weekend, staff need the cap list, and marketplace sellers should verify the platform implements the holiday correctly rather than assuming. Tax economists note that holidays mostly shift the timing of purchases rather than increasing total spending, which is why some states have abandoned them.
The honest answer is: sometimes, and less than it looks. Studies of sales tax holidays consistently find that most holiday purchases are shifted in time rather than new spending: shoppers who would have bought school supplies in September buy them during the August holiday instead. Retailers know this and rarely cut prices further during holidays, so the saving is exactly the tax rate, no more.
Where holidays do help is cash flow for families: a 7 percent saving on $500 of school shopping is $35 that stays in the household budget that week. For sellers, holidays are pure compliance cost: reprogramming systems for a weekend, training staff on caps, and handling the returns of holiday purchases (which are refunded net of the tax treatment). Weigh the goodwill against the operational headache before cheering your state's announcement.
Smart shoppers stack the holiday with other savings: retailer sales timed to the tax weekend, coupons, and price matching. The combined effect can beat 15 percent off sticker. Smart sellers do the opposite math: they forecast the holiday weekend's staffing and inventory separately, because the Saturday of tax weekend can run triple normal volume. Either way, the holiday rewards planners and punishes the unprepared, which is as good a summary of sales tax compliance as any.
Most states hold it on a weekend in late July or early August. Exact dates, eligible items, and price caps are set by each state legislature annually, so verify the current year's dates with your state revenue department.
Typically clothing and footwear under a per-item cap (often $100), school supplies under a lower cap, and sometimes computers under a higher cap. Each state defines its own list and caps.
Generally yes, if the order is placed and accepted during the holiday window. The exemption follows the same item and price-cap rules as in-store purchases.
Economists are skeptical: research finds holidays mostly shift purchase timing rather than creating new spending, while costing the state revenue and retailers compliance effort. Several states have discontinued theirs.
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Figures: 2026. Sources: the Tax Foundation (2026 Sales Tax Rates, Midyear Update, as of July 1, 2026), state revenue department websites, and the US Supreme Court (South Dakota v. Wayfair, 2018). This page is for planning only and is not financial, tax, or legal advice. Verify with the cited source or a qualified professional.