In Texas, certain items are tax-free during specific sales tax holidays. The main categories of tax-free items generally include:
- Most clothing, footwear, and backpacks priced under $100
- School supplies priced under $100
- Diapers (both cloth and disposable)
These tax exemptions commonly apply during the annual Texas sales tax holiday, such as the back-to-school tax holiday that typically lasts a weekend in early August. Here are more details on what qualifies for tax exemption in Texas:
- Clothing items are exempt if priced at $100 or less each (including shirts, pants, dresses, hats, sneakers, socks, workout clothes, diapers, and underwear).
- Most school supplies priced at $100 or less qualify, such as writing tablets, calculators, lunch boxes, book bags (with some restrictions), crayons, scissors, notebooks, and paper.
- Backpacks including those with wheels and messenger bags are exempt, but you can only buy up to 10 during the holiday without an exemption certificate.
- Diapers are exempt from sales tax.
Items that do NOT qualify for exemption during these tax holidays include:
- Electronics like computers and printers
- Textbooks and software
- Jewelry, wallets, watches
- Hair accessories, handbags, purses, briefcases, luggage, umbrellas
- Fabric and sewing materials used to make or repair clothing
- Athletic gear like cleated shoes, gloves, helmets, protective pads
- Non-prescription sunglasses
These exemptions only apply during specific tax-free holidays, and purchases outside those dates are not exempt from sales tax. The sales tax holiday usually applies to physical and online sales by Texas-based sellers and includes some special rules for business accounts.
So, in summary, in Texas, during the sales tax holidays, most clothing, footwear, school supplies, backpacks under $100, and diapers are tax-free. Other goods remain taxable outside these categories and times.
