Sales Tax Holiday 2024

Customers love sales tax holidays, but for ecommerce businesses, they can pose a challenge. This year, several US states will offer the sales tax holiday 2024. And since each state has its own rules, it’s important to know your obligations during these periods.

Track your sales tax holidays in 2024 better. We created this quick, comprehensive guide for every sales tax holiday in each state this year to help you stay updated and on track.

 

What is a Sales Tax Holiday?

A sales tax holiday is a period where the state or local government temporarily exempts qualifying items from sales tax to provide relief to customers. The state government announces sales tax holidays to boost economic activities and promote growth in the US.

Since most sales tax holidays are on weekends, they are also known as tax-free weekends. The following are the common types of sales tax holidays across the states. 

• Back-to-School:  To help parents prepare for the beginning of the school year, many states offer sales tax exemptions on specific school-related items such as clothes, shoes, school supplies, and computers in August.
• Emergency Preparedness: These holidays are more common in Southern states and allow people to prepare for emergencies during extreme weather conditions. 
• Energy Star Appliance: This holiday encourages people to reduce their consumption of energy resources by purchasing tax-exempt energy-efficient appliances.

Sales tax collection and remittance can go two ways: 

1. The seller is responsible for the sales tax collection
2. The buyer is liable to pay the sales tax

During a tax-free weekend, the buyers are not liable for paying sales tax on particular taxable transactions, and the sellers are prohibited from collecting it. Learn more about ecommerce sales tax to understand the compliance requirements during sales tax holidays.

For example, let’s look at how sales tax holidays work for a retail business.

A clothing store in Texas typically collects sales tax from customers and remits it to the state government. The funds collected from sales tax will be used for various public development projects by the state government. Texas has an annual back-to-school holiday around August 9-11. During those days, the company will not collect sales tax on qualifying clothing items costing less than $100.

 

Sales Tax Holidays 2024 State-By-State Schedule

Besides the five states with no sales tax, around 23 states offer one or more sales tax holidays and tax-free weekends. Below is a state-by-state guide schedule to sales tax holidays in 2024.

Note: Bookmark this blog to help you keep track of the sales tax holidays in 2024. We will update this table throughout the year to include new sales tax holidays announced by states.

 

STATE DATE TYPE ELIGIBLE MERCHANDISE Alabama February 23 – 25, 2024 Emergency Preparedness Weather preparedness items, up to $60, including (but not limited to): Batteries Smoke detector Fuel container Fire extinguisher July 19 – 21, 2024  Back-to-School Various school-related items, including: Computers, software, and computer supplies ($750 or less) School supplies (up to $50/item) Books ($30 or less) Alaska 2024 dates to be announced Tax-Free Holiday On those two days, you won’t have to pay taxes on most items, but this doesn’t include fuel, alcohol, tobacco (this includes vapes), or marijuana. Arizona Currently NO planned sales tax holiday Arkansas August 3-4, 2024  Back-to-School Various school-related items, including: Clothing and footwear ($100/item or less) Clothing accessories and equipment ($50/item or less) School supplies California Currently NO planned sales tax holiday Colorado Currently NO planned sales tax holiday Connecticut August 18-24, 2024 Back-to-School Clothing and footwear ( $100 or less) Note: This excludes clothing accessories and protective or athletic clothing Delaware Not Applicable Florida July 1, 2022- June 30, 2024 Home Hardening A two-year tax exemption for impact-resistant windows, doors, and garage doors.  July 1, 2023- June 30, 2024 Energy Star Appliances Energy Star appliances for non-commercial use: Refrigerators (up to $4,500) Washing machines (up to $1,500) Water heater (up to $1,500) Clothes dryer (up to $1,500) January 1-14, 2024 Back-to-School Various school-related items including: Clothing, wallets, and bags (up to $100) School supplies (up to $50) Learning aids (up to $30) Computers and computer-related accessories (up to $1,500) 2024 dates to be announced Disaster Preparedness Various disaster preparedness-related products up to $3,000, including: Batteries Fuel tanks Fire alarms Portable generators Carbon monoxide detectors 2024 dates to be announced Freedom Summer Various outdoor supplies including: Fishing supplies Camping supplies Pool supplies Children’s athletic equipment  Georgia Currently NO planned sales tax holiday Hawaii Currently NO planned sales tax holiday Idaho Currently NO planned sales tax holiday Illinois 2024 dates to be announced Grocery Tax Suspension Suspends 1 percent (1%) low rate of sales and use tax on retail sales of groceries normally taxed at this rate Indiana Currently NO planned sales tax holiday Iowa August 2-3, 2024 Back-to-School Clothing (less than $100) Footwear (less than $100) Note: This is excluding clothing accessories Kansas Currently NO planned sales tax holiday Kentucky Currently NO planned sales tax holiday Louisiana September 6-8, 2024 Second Amendment Weekend Holiday Firearms, ammunition, and hunting supplies, including archery items, hunting apparel, accessories, and safety equipment. Maine Currently NO planned sales tax holiday Maryland February 17-19, 2024 Shop Maryland Energy Various Energy Star appliances including: Standard size refrigerators Air conditioners Boilers Heat pumps Washers and dryers Compact fluorescent light bulbs Dehumidifiers Solar water heaters August 11-17, 2024 Back-to-School Clothing and footwear ($100/item or less) Backpacks (only the first $40) Massachusetts 2024 dates to be announced Annual Tangible Personal Property (up to $2,500) Michigan Currently NO planned sales tax holiday Minnesota Currently NO planned sales tax holiday Mississippi July 26-27, 2024 Back-to-School Clothing (less than $100) Footwear (less than $100) August 30- September 1, 2024 Second Amendment Firearms Ammunition Hunting supplies (tangible personal property used for hunting, including, and limited to, archery equipment, firearm and archery cases, firearm and archery accessories, hearing protection, holsters, belts, and slings.) Missouri April 19-25, 2024 Energy Star Holiday All Energy Star-certified new appliances up to $1,500, including: Air conditioners Washers and dryers Refrigerators Heat pumps Stoves Furnaces August 2-4, 2024 Back-to-School Various school-related items including: Clothing ($100 or less) School supplies ($50 or less) PCs and computer devices ($1,500 or less) Computer software ($350 or less) Graphing calculators ($150 or less per item) Montana Not Applicable Nebraska Currently NO planned sales tax holiday Nevada 2024 dates to be announced National Guard Member Day Purchases by National Guard Members New Hampshire Not Applicable New Jersey August 24- September 2, 2024 Back-to-School Various school-related items including: School instructional material Sports equipment Computers (less than $3,000) School supplies School art supplies School Instructional materials New Mexico August 2-4, 2024 Back-to-School Various school-related items including: Clothing and shoes ($100/unit or less) School supplies Computers and related devices ($1,000 or less) Specific computer-related items – $500 or less per item  Book bags, backpacks, maps and globes (less than $100 per item) Handheld calculators (less than $200 per item) NOTE: Retailers are not required to participate. November 30, 2024 Small Business Saturday Gross Receipts Tax Holiday Items include those under $500: Clothing, footwear, accessories (including jewelry, handbags, backpacks, luggage, wallets, etc.), sporting goods, and camping equipment. Tools for home improvement, gardening, and automotive maintenance and repair. Books, journals, paper, writing instruments, art supplies, greeting cards, postcards, and various artworks (such as photographs, sculptures, pottery, carvings, textiles, baskets, artifacts, etc.). Floral arrangements and indoor plants. Cosmetics and personal grooming products. Musical instruments. Cookware, small home appliances for residential use, bedding, towels, bath accessories, and furniture. Toys or games designed for children or families, video games, video game consoles, associated accessories for video game consoles, home electronics, tablets, stereo equipment, and related electronics. New York Currently NO planned sales tax holiday North Carolina Currently NO planned sales tax holiday North Dakota Currently NO planned sales tax holiday Ohio August 2-4, 2024 Back-to-School Various school-related items including: Clothing ($75 or less) Classroom instructional material ($20/item or less) School supplies ($20/item or less) Oklahoma August 2-4, 2024 Back-to-School Clothing (less than $100) Footwear (less than $100) NOTE: This is excluding accessories, special clothing or footwear primarily designed for athletic activity or protective use that is not normally worn except when used for athletic activity or protective use, or to the rental of clothing or footwear. Oregon Not Applicable Pennsylvania Currently NO planned sales tax holiday Rhode Island Currently NO planned sales tax holiday South Carolina August 2-4, 2024 Back-to-School Various school-related items including: School supplies Clothing and footwear Computers and software Clothing accessories Specific bed and bath items South Dakota Currently NO planned sales tax holiday  Tennessee July 26-28, 2024 Back-to-School Various school-related items including: Clothing and shoes ($100/item or less) School supplies ($100/item or less) Computers (up to $1,500) 2024 dates to be announced Food and Ingredients Food and food ingredient items purchased during this period are tax-free except items purchased from a vending machine or micro market. Texas April 27-29, 2024 Emergency Preparedness Various emergency preparedness supplies including:  Portable generators (less than $3,000) Emergency ladders and hurricane shutters (less than $300) First aid kits, batteries, axes, fuel containers, and light sources (less than $75) May 25-27, 2024 Energy Star Appliance Various Energy Star appliances including: Air conditioners (up to $6,000) Dishwashers Dehumidifiers Refrigerators (up to $2,000) Ceiling fans May 25-27, 2024 Water-Efficiency Various water-efficient products including:  Soakers or drip irrigation hoses. Moisture control systems for sprinkler or irrigation systems. Mulch. Rain collection systems. Soil and compost. Plants, trees, and grasses. Water-saving surfactants. Permeable ground cover surfaces that allow water to reach water collection points. August 9-11, 2024 Back-to-School Clothing and footwear (less than $100). This is excluding accessories, athletic or protective clothing, and rentals of clothing or footwear Backpacks School supplies (less than $100) Utah Currently NO planned sales tax holiday Vermont Currently NO planned sales tax holiday Virginia August 2-4, 2024 Three-Day Sales Tax Holiday School supplies eligible for savings – priced at $20 or less per item Clothing and footwear qualifying for exemption – priced at $100 or less per item Portable generators available for exemption – priced at $1,000 or less per item Gas-powered chainsaws eligible for savings – priced at $350 or less per item Chainsaw accessories qualifying for exemption – priced at $60 or less per item Other specified hurricane preparedness items available for exemption – priced at $60 or less per item Qualifying Energy Star™ or WaterSense™ products for noncommercial home or personal use – priced at $2,500 or less per item Washington Currently NO planned sales tax holiday West Virginia August 2-5, 2024 Back-to-School Various school-related items including: Clothing (less than $125) School supplies (less than $50) Computers and laptops (less than $500) Sports equipment (less than $150) School instruction material (less than $20) Wisconsin Currently NO planned sales tax holiday Wyoming Currently NO planned sales tax holiday

   

Sales Tax Holiday 2024 Frequently Asked Questions  

What states offer Sales Tax Holidays for specific items only?

In 2024, only a few states with statewide sales tax are offering sales tax holidays for specific items. States like Alabama, Florida, Massachusetts, Mississippi, and Missouri are among those that have announced sales tax holidays. These holidays typically cover items such as school supplies, clothing, and emergency preparedness items.

 

How should ecommerce businesses ensure compliance during Sales Tax Holidays?

To avoid overcharging customers, ecommerce businesses must ensure that sales tax collection is turned off for products eligible for sales tax holidays. If a business fails to turn off sales tax collection during sales tax holidays, they may face legal consequences and penalties.

Instead of managing sales tax manually, businesses can opt to use reliable sales tax solutions like TaxHero to handle tax holidays efficiently and enhance compliance.

 

What products are included in tax-free weekends?

Every state has its own rules and regulations for declaring tax-exempt products during tax-free weekends. Usually, the products included in sales tax holidays are back-to-school supplies, disaster preparedness-related items, energy-efficient products, and ammunition.

 

When are tax-free weekends in 2024?

Tax-free weekends are announced in various states at any time throughout the year. Sometimes, the states may expand existing tax-free weekends to benefit citizens. The states may also suspend tax-free weekends when tight on budget. Refer to the schedules we shared above to learn about tax-free weekends occurring in 2024.

 

Do Sales Tax Holidays have price restrictions?

Yes, sales tax holidays may have some price restrictions, but they are not mandatory. Some states don’t set a price cap on products during sales tax holidays, and others might. Our schedule for sales tax holidays in 2024 includes price restrictions on certain items as announced by each state.

 

Streamline your holiday sales tax with TaxHero today!

Sales tax rules and regulations change frequently in all states. As an ecommerce business, you must track sales during sales tax holidays to ensure prompt compliance. Automate your sales tax compliance with TaxHero to avoid any legal penalties. Book a call to learn how we can help your business.