There are a number of states that either completely waive, or reduce, the amount of sales tax they charge around the back to school shopping season. This upcoming “holiday” will also be occurring in 2016 as well. The latest information on each state is below.
There are restrictions on what can be bought and there will also be caps on how much money can be saved or spent. For example, Florida will only waive the sales tax on more “everyday” items that cost less than $15. The limit for clothing is higher. Virginia only allows savings on clothing and not electronics, so their program is different.
The bottom line is that each state will have their own restrictions in place and we always recommend to review the rules and regulations for where you live. But no matter what, these 2016 tax free holidays are always a great time to do some shopping.
The months of July through September of 2016 is a critical shopping period for American families, individuals as well as businesses. The National Retail Foundation estimates that around $75 billion dollars will be spent around this window of time on everything from school supplies including clothing, backpacks, pens, pencils, and more. Some of this money is even spent at local charity thrift stores, including Salvation Army Family Shops. This equates to about $670 per household, and that dollar amount is just on school supplies! It does not count all the other shopping that taxes place.
What many people may not realize is the tax savings are not only for goods that students need for the upcoming year, but the savings are also usually on more business oriented items. This can include everything from computers to other technology items. Many small businesses owners or people that are self-employed also take advantage of this period of time to buy what they need for their own personal use. What this means is that even if you do not have a child in school or college, the 2016 tax free weekends can still be a good time to shop.
In general, states will not have any income limits in place. That means the sales tax savings can not only be experienced by low income families, but also more moderate to even high wage earners can gain from shopping during the tax free holiday. Now there may be maximum dollar amounts of how much money can be spent to get the benefits, but still, even if you are considered to be “middle-class” this period of time can be very beneficial.
Dates of tax free weekends in 2016 in order
The sales taxes will be waived around these dates. As we noted, you should always confirm them as well as exactly what can or can’t be bought. If you still need additional help in paying for school supplies during 2016, try charities such as the Salvation Army or a local food pantry. Many organizations will assist, and find additional information on free school supplies for low income families.
Georgia, July 29-31, 2016
Mississippi, July 29-31, 2016 per the state’s Department of Revenue.
Tennessee, July 29-31, 2016
Alabama, August 5-7, 2016
Florida, August 5-7, 2016
Iowa, August 5-7, 2016
Louisiana, August 5-7, 2016
Missouri, August 5-7, 2016
New Mexico, August 5-7, 2016
Oklahoma, August 5-7, 2016
South Carolina, August 5-7, 2016. Confirm with the Department of Revenue.
Texas, August 5-7, 2016. More information is at Texas Comptroller of Public Accounts.
Virginia, August 5-7, 2016
Arkansas, August 6-7, 2016. The Department of Finance and Administration can provide more information on the school supply holiday.
Maryland, August 7-13, 2016
Connecticut, August 14-20, 2016