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USA:
What are Sales Tax holidays?
Sales tax holidays are short, scheduled periods when a state temporarily waives or reduces sales tax on certain goods and/or services – often to help shoppers save on things like school supplies, clothing and emergency gear. This does create a significant compliance and operational consideration for retailers and ecommerce sellers.
According to reports, more than 20 states or territories of the US have confirmed at least one sales tax holiday for 2026 so far. Additional holidays may still be enacted as legislative sessions continue.
Alabama
Two sales tax holidays are scheduled for 2026: a Severe Weather Preparedness holiday from 20th – 22nd February covering generators and emergency supplies within specific price limits, and a Back-to-School holiday from 17th -19th July covering books, clothing, computers, and school supplies under set thresholds.
Alaska
There is no state-wide sales tax, but certain local jurisdictions may offer temporary local sales tax holidays during the year. For example, the Municipality of Skagway has a retail sales tax holiday on 1st October 2025 – 31st March 2026.
Arkansas
In Arkansas, a back-to-school holiday will take place 1st – 2nd August, exempting qualifying clothing, accessories, school supplies, and certain electronics below designated price caps.
Connecticut
A tax-free week is scheduled for 16th – 22nd August, during which clothing and footwear under $100 are exempt from sales tax.
Florida
A month-long back-to-school holiday will run from 1st – 31st August, exempting qualifying clothing, school supplies, computers, and learning aids within established price limits.
Iowa
Between 7th – 8th August 2026, a sales tax holiday applies to qualifying clothing and footwear priced under $100.
Louisiana
A Second Amendment holiday will be held from 4th – 6th September, exempting qualifying firearms, ammunition, and hunting supplies.
Maryland
Two holidays are confirmed: an Energy Star holiday from 14th– 16th February for qualifying energy-efficient appliances, and a Tax-Free Week from 9th – 15th August for clothing and certain backpacks within price limits.
Massachusetts
The annual sales tax holiday will occur on dates to be announced and typically exempts most tangible personal property below a set dollar cap.
Mississippi
A back-to-school holiday will run from 10th – 12th July for qualifying clothing and school supplies, followed by a Second Amendment holiday from 28th – 30th August covering firearms and related equipment.
Missouri
In Missouri, the Show Me Green sales tax holiday is scheduled for 19th – 25th April for qualifying Energy Star appliances, and a back-to-school holiday will take place from 7th – 9th August, covering clothing, computers, and school supplies within price limits.
Nevada
A sales tax holiday is authorized under specific eligibility rules, typically requiring documentation or exemption letters as directed by the state tax authority.
New Mexico
A back-to-school holiday is scheduled for 31st July – 2nd August 2026, exempting qualifying clothing, computers, and school supplies within statutory price caps.
Ohio
The previously expanded 2026 holiday was repealed, but a traditional back-to-school style holiday is still expected, with final details pending.
Oklahoma
Held between 7th – 9th August 2026, applying to qualifying clothing and footwear under $100.
Puerto Rico
A back-to-school holiday will took place on 2nd – 3rd January 2026, with additional mid-year dates expected for qualifying uniforms and school supplies.
South Carolina
A traditional back-to-school holiday is expected in mid-August 2026, with final dates to be confirmed.
Tennessee
In Tennessee, a sales tax holiday will run from 24th – 26th July, exempting qualifying apparel, computers, and school supplies within price thresholds.
Texas
Three holidays are confirmed: an Emergency Preparation Supplies holiday from 25th – 27th April, an Energy Star holiday from 23rd – 25th May, and a back-to-school holiday from 7th – 9th August, each with specific qualifying items and price limits.
Virginia
A combined holiday will run from 7th – 9th August, covering qualifying clothing, school supplies, emergency preparedness equipment, and certain energy-efficient products.
West Virginia
A back-to-school holiday is anticipated, though final 2026 dates and qualifying item details are still pending.
What businesses should consider
Even though businesses still collect money for the sale, the way sales tax is handled changes temporarily:
1. Compliance Complexity
- Businesses must identify which items qualify for the holiday in each state. For example, clothing under $100 may be tax-free, but accessories or higher-priced items are still taxed.
- Each state has different rules, so multistate retailers face extra tracking.
2. System Updates
- Point-of-sale (POS) and ecommerce systems need to automatically apply tax exemptions on qualifying items for the correct dates. Failing to do so can trigger customer complaints or audits.
3. Reporting & Accounting
- Sales tax holidays don’t mean businesses keep less revenue, but they report zero tax collected for those transactions. That must be correctly reflected in tax filings.
