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How to Boost Your Back-to-School Savings

Inflation is affecting every corner of the economy, and that includes back-to-school shopping. Parents expect to spend $597 per student in grades K-12, down 10% from last year, according to a 2023 Deloitte Back-to-School Survey of 1,212 U.S. parents.

If you’re looking to mitigate this cost increase, you might want to consider taking advantage of the “tax-free weekend” offered in many states. Let’s take a look at how these weekends work, which states offer them, and what type of purchases are eligible.

What is a Tax-Free Weekend?

Most states charge sales tax, which is a tax levied on items you purchase. The more you spend, the more you’ll pay in taxes.

To help struggling consumers, many states offer a tax-free weekend during which they will not charge sales tax. Tax-free weekends are usually held right before school starts, so that parents and students can save on clothes, laptops, school supplies and other necessities. 

The tax holiday applies to both in-store and online purchases. If you purchase an item online, the tax discount will still apply even if the item is delivered after the holiday is over.

Every state has its own limits on what you can buy tax-free. For example, most states have a limit of $100 for each clothing item. If you buy a $125 winter coat, you’ll still have to pay taxes on it. 

However, in most states, adults can also save money during the tax-free weekend because the discount doesn’t just apply to children’s clothing and accessory items. They can also purchase electronics and office supplies without paying a sales tax. Teachers and childcare professionals can also buy classroom supplies during this time.

You don’t have to be a resident of the state to benefit from the tax holiday. If you live near a state with a tax-free weekend, you can still take advantage of the discount.

Before you hit the stores, you should ensure that the tax-free discount doesn’t lead you to buy more than you can actually afford. Write out what you truly need to buy beforehand. Remember, you’re not saving money if you end up spending more than you would have otherwise.

Find Your State

Alabama

Dates: July 21-23

Tax rate: 4%

Eligible items: 

Learn more

Arkansas

Dates: Aug. 5-6

Tax rate: 6.5%

Eligible items: 

Learn more

Connecticut

Dates: Aug. 20-26

Tax rate: 6.35%

Eligible items: 

Learn more

Florida

Dates: July 24-Aug. 6

Tax rate: 6%

Eligible items: 

Learn more

Iowa

Dates: Aug. 4-5

Tax rate: 6%

Eligible items: 

Learn more

Maryland

Dates: Aug. 13-19

Tax rate: 6%

Eligible items: 

Learn more

Massachusetts

Dates: Aug. 12-13

Tax rate: 6.25%

Eligible items: 

Learn more

Mississippi

Dates: July 28-29

Tax rate: 7%

Eligible items: 

Missouri

Dates: Aug. 4-6

Tax rate: 4.225%

Eligible items: 

Learn more

New Jersey

Dates: Aug. 26-Sept. 4

Tax rate: 6.625%

Eligible items:  

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New Mexico

Dates: Aug. 4-6

Tax rate: 5.125%

Eligible items:  

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Ohio

Dates: Aug. 4-6

Tax rate: 5.75%

Eligible items: 

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Oklahoma 

Dates: Aug. 4-6

Tax rate: 4.5%

Eligible items: 

Learn more

South Carolina

Dates: Aug. 4-6

Tax rate: 6%

Eligible items: 

Learn more

Tennessee

Dates: July 28-30

Tax rate: 7%

Eligible items: 

Learn more

Texas

Dates: Aug. 11-13

Tax rate: 6.25%

Eligible items: 

Learn more

West Virginia 

Dates: Aug. 4-7

Tax Rate: 6%

Eligible Items: 

Learn More

NO SALES TAX HOLIDAY: Alaska, Arizona, California, Colorado, Delaware, Georgia, Hawaii, Idaho, Illinois, Indiana, Kansas, Kentucky, Maine, Michigan, Minnesota, Montana, Nebraska, Nevada, New Hampshire, New York, North Carolina, North Dakota, Oregon, Pennsylvania, Rhode Island, South Dakota, Utah, Vermont, Virginia, Washington, and Wyoming.

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