Sales Tax Takes a Holiday in the US: Dates & Descriptions of Holidays

More than one dozen states across the U.S. now offer sales tax holidays, days where shoppers can stock up on essentials like clothing and school supplies without paying any extra to Uncle Sam. The programs are typically offered over a weekend, often in conjunction with the beginning of the school year. In southern states that offer tax holidays on hurricane preparedness items, the timing may coincide with the beginning of the hurricane season.

Sales Tax Holidays by State

The following states currently offer some type of sales tax holiday, according to the website for the Federation of Tax Administrators. The time frame for the holiday varies greatly, in terms of the length of the holiday and the time of year in which it is scheduled. If the holiday says 2 days for the weekend then it is Saturday and Sunday and if it shows 3 days for the weekend then it is Friday through Sunday. These figures were updated in June 2012:

• Alabama (3 days. 1st weekend in August): Clothing, computers, school supplies, books
• Arkansas (2 days. 1st weekend in August): Clothing, school supplies
• Connecticut (7 days. 3rd week in August): Clothing, footwear
• Iowa (2 days 1st weekend in August):  Clothing
• Louisiana (2 days. 1st weekend in August): All consumer purchases of tangible personal property. Exemptions include vehicles and meals already prepared for consumption.
• Louisiana (2 Days. Last weekend in May): Hurricane preparedness
• Louisiana (2 days. 1st weekend in September): Firearms, ammunition, hunting supplies
• Maryland (3 days. 3rd weekend in February): Energy Star appliances
• Maryland (7 days. 3rd week in August): Clothing, footwear
• Mississippi (2 days. Last weekend in July): Clothing, footwear
• Missouri (7 days. 3rd week in April): Energy Star appliances
• Missouri (3 days. 1st weekend in August): Clothing, computers, school supplies
• New Mexico (3 days. 1st weekend in August): Clothing, computers, school supplies
• North Carolina (3 days. First weekend in August): Clothing, school supplies, instructional material, computers, sports equipment
• North Carolina (3 days. First weekend in November): Energy Star appliances
• Oklahoma (3 days. 1st weekend in August): Clothing
• South Carolina (3 days. 1st weekend in August): Clothing, school supplies, computers
• South Carolina (2 days. Last weekend in November): Guns, rifles, handguns
• Tennessee (3 days. 1st weekend in August): Clothing, school supplies, computers
• Texas (3 days. Last weekend in May): Energy Star appliances, air conditioners
• Texas (3 days. 3rd weekend in August): Clothing, backpacks, school supplies  3rd weekend August
• Virginia (7 days. Last Week in May): Hurricane preparedness items including generators
• Virginia (2 days. First weekend in August): School supplies, clothing
• Virginia (4 days. October 5th-8th): Energy Star appliances

The first tax holiday was established in Texas in 1999, to ease the burden on parents buying school supplies for their children. North Carolina was the next state to hop onboard the tax holiday bandwagon, followed by the rest of the states on this list. The most recent states to implement a tax-free holiday are Arkansas and Maryland, which made their holidays official in 2011.

Another state that had previously been on this list, Georgia, has skipped tax holidays since 2010, after facing a large budget shortfall in the state. According to a report at USA Today, Georgia’s tax holiday in 2009 cost the state more than $13 million in lost revenue. Other states that continue to offer tax holidays despite current budget woes believe the reprieve stimulates the local economy and may even provide an incentive for homeowners to move to the state. Retailers support the move as well; saying even the temporary incentive to buy is enough to provide economic stimulation, with relatively low cost to state government.