The non-profit Tax Foundation reports that sales tax holidays have been around since 1980 when states like Ohio and Michigan gave their people a one-time opportunity to avoid paying sales tax on automotive purchases. They used to be held very occasionally but now occur annually in over a dozen states. The Sales Tax Centre says that during a sales tax holiday, a country motivates people to spend money by letting them buy certain items tax-free. These items include school supplies, computer accessories, clothing & shoes, or rather energy-efficient household appliances and products to get ready for bad weather. According to the institution, there is often a maximum allowable expenditure for eligible purchases.
Sara Skirboll, a retail & trends specialist at RetailMeNot, has found that tax-free shopping is particularly popular in the South. Approximately half of all back-to-school expenditures are made on apparel, footwear, and technology, according to the website's statistics. Skirboll believes that around tax holidays, shoppers may anticipate significant discounts on these products. The following states provide tax-free days:
States with Tax-Free Holiday
Alabama
What kinds of things qualify? Alabama's summertime sales tax holiday excludes clothing under $100, electronics and software under $750, school materials under $50, and books under $30. For a list of tax-free products in Alabama, please see the state's Department of Revenue.
Arkansas
What kinds of things qualify? As per the Arkansas Finance Department & Management, tax-free products include apparel priced under $100 per item, clothing accessories priced under $50 per item, electronic gadgets often used by students while they are studying, and school supplies.
Florida
What kinds of things qualify? As per the Florida Treasury, the sales tax holiday applies to clothing, shoes, and accessories priced at $100 or less, the majority of school supplies priced at $50 or less, board games and learning aids priced at $30 or less, and desktop computers and gadgets priced at $1,500 or less.
Illinois
What kinds of things qualify? Illinois has introduced a new 2-week sales tax holiday this year, during which some purchases are exempt from the state's standard sales tax rate of 5%. As per the Illinois Treasury, students may deduct the cost of clothes and shoes that cost $125 or less, as well as the cost of school materials that are directly related to their coursework.
Maryland
What kinds of things qualify? You may also enjoy a whole week of tax-free buying in Maryland. Clothing and shoes priced under $100 per piece, as well as the first $40 in sales of backpacks and book bags, qualify. On the homepage of the Maryland Comptroller, further details regarding the Shop Maryland Tax-Free Week may be found.
Massachusetts
What kinds of things qualify? The Massachusetts Sales Tax Holiday has limited limitations. The sales tax is not required to be paid on almost all $2,600 or fewer purchases made for personal use. The State of Massachusetts lists very few exclusions, including automobiles, motorboats, marijuana items, meals, and alcoholic beverages.
Missouri
What kinds of things qualify? Purchases of up to $50 worth of school supplies, desktop computers, and computer accessories are all tax-free in the state of Florida. Sales tax is also not charged on up to $150 worth of graphing calculators and roughly $350 worth of computer software. According to the Missouri Treasury, however, local jurisdictions may impose their own sales taxes.
New Jersey
What kinds of things qualify? For the first time ever, school supplies, craft supplies, teaching materials, and sports and leisure equipment purchased in New Jersey will be exempt from sales tax. The state Department of Taxation exempts sales tax on computers under $3,000 and academic computer accessories under $1,000 throughout the week-long holiday.
New Mexico
What kinds of things qualify? All purchases of apparel and footwear under $100, all purchases of laptops and tablets under $1,000, all purchases of computer hardware under $500, and all purchases of school supplies under $30 are exempted from sales tax during New Mexico's tax-free holiday. The Taxation and Revenue Division of the state has an online database of taxable & non-taxable goods.
How Much Is The Car Tax In Louisiana?
Local, parish, & state taxes must all be paid to the Louisiana parish department of automobiles upon car acquisition. A car dealer must collect the appropriate sales tax from the buyer when the vehicle is purchased. If, on the other hand, you acquire a vehicle from a private party, you are the one who will be liable for the payment of the vehicle sales tax that is associated with that transaction.
Does Louisiana Provide Sales Tax Exemptions?
The most asked question is: can I take advantage of the Louisiana sales tax-free weekend on a vehicle? At the present time, neither the purchase nor the transfer of a car in Louisiana is free from sales tax. If they paid an equivalent tax in another state, military members might be excused from the vehicle use tax.
