How to Make the Most of Tax-Free Weekends and Sales Tax Holidays

A tax-free weekend is an opportunity to save sales tax on certain items. For example, a $1,000 purchase of a computer in a state that offers a 7% tax-free discount means $70 saved. You can make the most of the weekend by buying back-to-school items, electronics, appliances and emergency preparedness equipment. Find out if your state offers a tax-free weekend and what the price caps are on eligible items. Make sure to be clear on what you need so you don't overspend on unnecessary items.

Quick Take: What to Know About Tax-Free Weekends

• Tax-free weekends waive sales tax on certain eligible purchases.

• They usually happen in late July or August, though some states also hold them around President’s Day or Memorial Day weekends.

• Savings typically range from 4% to 10%, depending on your state’s sales tax rate.

• Not all items qualify — many states set price caps or exclusions.

• Plan ahead so you buy what you actually need rather than making impulse purchases.

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What Are Tax-Free Weekends and Sales Tax Holidays?

Tax-free weekends and sales tax holidays are special events lasting a few days when states waive sales tax on specific items. Retailers often focus on back-to-school items like electronics (including computers and printers), school supplies, clothing and accessories, shoes, and certain bed and bath items. Not all states participate in tax-free weekends. There are about 20 states that participate. Even in states where there is no state tax, consumers will still pay local taxes. TIP BOX: Tax-free weekend = a limited-time state event when sales tax is temporarily waived on specific items.

What Items Are Usually Tax-Free?

Here are the covered items:

• Clothing (often with price caps)

• School supplies

• Computers and electronics

• Shoes

• Hurricane preparedness supplies (in some states)

• Energy-efficient appliances (select states)

Why Many Shoppers Take Advantage of Tax-Free Weekends

• Lower total cost. You can save up to 10% depending on your state’s rate.

• Lessens back-to-school costs. You can ease budget strain with the discounts.

• Opportunity to support local businesses. Purchases from increased traffic will boost business for local and small retailers.

How Much Can You Save During a Tax-Free Weekend?

Tax-free weekends can help shoppers lower the cost of certain purchases by eliminating state sales tax on eligible items. The actual savings depend on your state’s tax rate and how much you spend.

While the discount might seem small at first, it can add up — especially when buying larger items like electronics or back-to-school supplies. Here's how sales tax savings can add up

How to Prepare for Tax-Free Weekends

Here’s how to make the most of your tax-free weekend:

• Know when tax-free weekends are happening in your state. Tax-free weekends vary from state-to-state with dates typically in July and August.

• Learn item eligibility rules and price caps. Some items may have caps and eligibility rules.

• Make a prioritized shopping list. Evaluate what you need before you start shopping.

• Compare prices before you go. Just because something’s tax-free doesn’t mean it’s the best deal. Do your homework and compare prices online before heading out.

• Shop at ideal times. Tax-free weekend shopping can be crowded, so plan your trip during less busy times if possible. Early mornings or late evenings are generally the best times to avoid the rush.

What Are the Rules and Price Limits of Tax-Free Weekends?

Tax-free weekends can help you save money, but the discounts only apply if certain rules are met. Most states place price limits on eligible items and exclude some purchases entirely.

Price Caps on Eligible Items

During tax-free weekends, states usually set a maximum price per item. If a product costs more than the limit, sales tax typically applies to the full purchase.

Here are some common examples:

• Clothing and footwear: Often capped at $100 per item in many states, though some allow higher limits.

• Computers and tablets: Caps are usually higher but vary by state. For example, Florida, Tennessee and Missouri allow up to $1,500, while West Virginia caps it at $500.

• School supplies: These usually have lower limits, often between $20 and $50 per item.

Items That Typically Don’t Qualify

Even if an item falls below the price cap, it may still be excluded from tax-free weekend. Common exclusions include:

• Jewelry, wallets, purses and watches

• Athletic equipment or sports gear

• Digital subscriptions or streaming services

• Rental items

Because rules can vary widely by state, it’s always a good idea to check your state’s guidelines before shopping.

Per-Item vs. Total Purchase Limit During Tax-Free Weekend

Each item purchased is tax-free. For example, you can buy 10 jackets at $80 each without taxes since the price point is under $100. However, some states will apply a total purchase limit on school supplies (but this is more of an exception). Here’s what you need to keep in mind:

• Only eligible items qualify for tax-free weekends

• Some states allow layaway purchases during the tax-free weekend if the order is placed during the weekend

• Business purchases do not qualify

• Rain checks may not qualify

Top States for Tax-Free Holidays

Many states participate in tax-free weekends or sales tax holidays. Rules vary by state and may change each year, but common examples include:

• Texas. Clothing, footwear, school supplies and backpacks typically priced under $100 qualify.

• Florida. Often runs a multi-week sales tax holiday covering clothing, school supplies and computers up to about $1,500.

• Massachusetts. Most retail items under about $2,500 qualify, allowing shoppers to purchase higher-priced items like furniture or electronics tax-free.

• Ohio. Clothing usually qualifies under about $75, with school supplies under about $20.

• South Carolina. Covers a wide range of items including clothing, school supplies, computers and some home goods.

• Virginia. Typically combines its back-to-school tax holiday with a hurricane preparedness exemption, covering clothing, school supplies and certain emergency supplies.

How Much Can You Actually Save During Tax-Free Weekend?

The amount you save during a tax-free weekend depends on how much you spend and your state’s sales tax rate. While skipping sales tax on a small purchase may only save a few dollars, the savings can add up quickly on bigger-ticket items like electronics or a full back-to-school shopping trip.

The examples below show how tax-free savings can vary depending on the purchase price and state tax rate.

Simple Ways to Maximize Your Savings

Tax-free weekends can offer solid savings, but a little planning can help you stretch those discounts even further. By timing your purchases and taking advantage of other deals, you may be able to save more than just the sales tax.

• Combine with sales. Many retailers run major promotions during tax-free weekends. Look for sales events to maximize savings since stores often align big discounts with the holiday.

• Shop online. Some states extend tax-free benefits to online purchases. This can help you avoid crowds — just make sure the retailer ships to your state and the item qualifies for the tax holiday.

• Use coupons. Apply coupons, promo codes or loyalty rewards for extra savings on top of the tax break.

• Check store policies. Some stores have special rules or exclusions during tax-free weekends, so review their policies before shopping.

• Stay organized. Keep receipts in case you need to return items. Some states may allow tax refunds if items are returned after the tax-free weekend.

Avoid This Common Tax-Free Weekend Mistake

Don’t buy something just because it’s tax-free. The savings can be tempting, but impulse purchases can quickly erase the benefit of skipping sales tax.

Before you shop, make a list of what you actually need and stick to it. Treat the tax break as a bonus on planned purchases, not a reason to spend more.

Do Tax-Free Weekends Apply to Online Purchases?

In many states, tax-free weekends also apply to online purchases, but a few conditions must be met.

• The retailer must have sales tax nexus in the state. This means the business has a sufficient connection to the state that requires it to collect sales tax.

• The item must be eligible for the tax-free holiday under that state’s rules.

• The purchase must be completed during the tax-free period, based on the transaction timestamp.

As long as those requirements are met and the item ships to a participating state, the purchase can qualify for the tax exemption.

Are Tax-Free Weekends Actually Worth It?

Tax-free weekends can be worthwhile, but only if you approach them strategically.

When Tax-Free Weekends Make Sense

They’re most beneficial when you’re purchasing larger items you already planned to buy.

For example:

• A 7% tax savings on a $1,500 laptop equals $105 saved.

• Appliances, generators and other larger purchases during emergency preparedness weekends can also lead to meaningful savings.

When They Don’t Make Sense

Tax-free weekends don’t provide real value if you:

• Buy items you don’t need

• Spend outside your budget

• Purchase something just because it’s temporarily tax-free

The key is to focus on items you already planned to purchase.

Sales vs. Tax-Free Savings: Which Is Better?

Sometimes a traditional sale can offer bigger savings than skipping sales tax.

For example, a 10% store discount typically saves more than avoiding a 5%–8% sales tax.

If a retailer suspends regular promotions during a tax-free weekend, the final price may actually be higher. Always compare prices before you buy.

FAQ

Do all states have tax-free weekends?

Not all states participate in tax-free weekends. Only 20 states participate in tax-free weekends.

Is everything tax-free during the holiday?

No, not every item is tax-free during the holiday. Generally, school supplies, clothing and energy efficient appliances are tax-free.

Are online purchases included?

The tax-free holiday does include online purchases.

Can businesses shop tax-free?

Tax-free weekends are generally meant for personal use not businesses.

What happens if you return an item?

If the return is an even exchange, there’s no sales tax. If you want a refund, you only receive what you paid. If you return an item and buy a new item, you’ll be responsible for the sales tax.