what is tax free weekend

what is tax free weekend

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A tax-free weekend, also called a sales tax holiday, is a specific period during which states remove the sales tax on certain types of items. It commonly lasts for a weekend, often Friday through Sunday, but sometimes for a longer period. During this time, shoppers do not have to pay the usual state sales tax on eligible purchases. These holidays are often timed around major shopping periods such as back-to-school seasons. Key details about tax-free weekends:

  • They apply only to specific items, often clothing, school supplies, computers, and sometimes other categories like energy-saving appliances or emergency preparedness items.
  • There are usually restrictions on the price of items to qualify for the tax exemption. For example, clothing under a certain dollar amount (e.g., $100) is exempt.
  • The sales tax exemption applies only to purchases made during the holiday period. Purchases before or after do not qualify.
  • Not all states have tax-free weekends, and the rules vary widely by state in terms of dates, items covered, and price limits.
  • Some states also exempt local sales taxes during these holidays, but others may still collect them.

The aim of tax-free weekends is to encourage spending by lowering the cost of essential goods temporarily. For example, in 2025 in Texas, the sales tax holiday is from August 8 to August 10, during which most clothing, footwear, school supplies, and backpacks priced under $100 are tax-free.

This concept originated in the U.S. and has been adopted by multiple states to boost consumer spending at specific times of the year, often for back-to- school shopping.

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