Sales tax holidays, which allow customers to buy products without paying taxes, are becoming increasingly popular, with 24 states experiencing nearly 45 in 2023.
(Credit: Zee Business)
States with Tax Free Weekend: The popularity of sales tax holidays is growing. There will be even more sales tax holidays in 2024; in 2023, 24 states observed almost 45 of them. Keep up with these happenings if you work in retail.
Sales tax holidays are times set aside when customers can buy particular products without having to pay sales tax. Though some, as in Florida and Tennessee, have lasted for months or even years, these holidays typically last for a day, weekend, or week.
Stores who typically collect sales tax are not required to do so on qualifying items during a sales tax holiday. This exemption applies to purchases made online, in-person, by mail, or in any other way. Generally speaking, retailers cannot collect sales tax on qualified sales during this time.
States differ in what they call sales tax holidays, weekends, weeks, or events. Any state having a statewide sales tax might create one, even though not all do. The reason they are popular politically is that customers value the brief sales tax exemption.
While some events are one-time only, most states have annual sales tax holidays. For example, although it doesn’t have a designated yearly tax holiday, Florida usually offers at least one, if not more.
Freedom Summer sales tax exemption: When Does It Start and What Can You Save On?
States with tax free weekends are listed here:
Local governments oversee local taxes in home rule states, hence local sales tax holidays can also happen there. There will be more tax-free events in 2024 after a number of Alaskan villages hosted them in 2023.
Tax Free Retirement Account: Exploring the benefits and more
Though every sales tax holiday is different, several have recurring themes. Among the most popular are the tax holidays during back-to-school, which exclude clothing and school supplies. Periods of tax exemption also apply to water-saving devices, Energy Star appliances, disaster preparedness materials, and even guns and hunting gear.
Batteries, coolers, generators and tarps are typically tax-exempt for holidays dedicated to disaster preparedness. Second amendment tax-free weekends usually cover guns, ammo, and some safety equipment, while gun safes might not always be eligible.
SAVE plan suspension affects American students, affecting married borrowers' monthly payments on federal student loans,…
SNAP program provides monthly payments to people with income, ensuring they can afford groceries, based…
American Airlines is introducing free high-speed Wi-Fi on over two million flights starting January 2026,…
Social Security payments are scheduled for Wednesdays throughout the month, with those born between the…
Forbearance temporarily suspends student loan payments, providing a temporary break for those experiencing financial difficulties.
TSCL predicts a 2.3% increase in the COLA for 2026, slightly higher than their previous…