During the sales tax holiday, certain items are sold without sales tax. In many states, the sales tax holiday coincides with the back-to-school shopping season.
The sales tax holiday come with eligibility rules both for retailers and shoppers. Each participating state determines the duration, the items, and the price limit of the tax-free items. Online stores such as Amazon also have to account for sales tax holidays in different states.
Shoppers will find no sales tax charged on items such as school clothing, footwear, computers, and school supplies. Usually, the sales tax holiday will last from one to three days. During previous tax-free events, there has been seen a 49% hike on items of clothing and a 45% hike on footwear sold.
Planning your shopping during the sales tax holiday can provide important savings. Equipment such as computers may be a great buy during this period. Planning ahead for buying certain items can mean more money in the pocket.