School Savings: 17 U.S. States Slash the Cost of Back-to-School Items Thanks to July and August ‘Holiday’ Law – Check If Yours is on the List

Introduction

As the back-to-school season approaches, many shoppers are finding a pleasant surprise in the form of tax breaks available in 17 U.S. states.

Thanks to a series of widely embraced tax exemptions, the costs of school-related purchases have been significantly reduced, offering much-needed relief for families gearing up for the new school year.

The holidays, which fall in July and August, provide a break from sales tax, saving shoppers a considerable amount of money.

This article explores the tax exemptions available in different states and the growing trend of early back-to-school shopping. Read on to find out if your state is participating in these savings opportunities.

How the Sales Tax Holiday Works

In an effort to support families, especially in the back-to-school rush, several states have instituted temporary holidays on sales tax for specific school-related items.

This initiative applies to essential products like school clothing, shoes, and supplies, with the aim of Reducing the economic strain on parents and students as they prepare for the school year.

These tax breaks are available during different times in July and August, so it’s crucial for shoppers to be aware of when their state’s sales tax holiday will take place.

States Offering Tax Holidays

While no federal holidays are dedicated to back-to-school shopping, 17 states have jumped on board, offering significant savings on school items during the summer months.

Each state sets its own dates and eligibility criteria for tax-free purchases, but generally, these holidays apply to clothing, shoes, school supplies, and sometimes even computers and accessories.

Mississippi kicks off the tax holiday season, with its event running from July 11 to July 13.

Here’s a rundown of the states and their sales tax holiday periods:

Major U.S. States Offering Sales Tax Holidays

Mississippi

• Dates: July 11-13
• Tax-Free Items:
  • Apparel and shoes priced at $100 or below each
  • Educational materials costing $100 or less per piece

Alabama

• Dates: July 18-20
• Tax-Free Items:
  • Clothing and shoes: $100 or less per item
  • Computers: $750 or less per item
  • School supplies: $50 or less per item
  • Books: $30 or less per item

Arkansas

• Dates: August 2-3
• Tax-Free Items:
  • Apparel and footwear priced at $100 or below each
  • Accessories for clothing costing $50 or less per piece
  • Educational materials and supplies
  • School-related electronic equipment

Florida

• Dates: August 1-31
• Florida has expanded its back-to-school sales tax holiday to cover the entire month of August.
• Tax-Free Items:
  • School supplies: $50 or less per item
  • Apparel, footwear, and accessories costing $100 or less per piece
  • Computers and related accessories: $1,500 or less per item
  • Learning aids and jigsaw puzzles available for $30 or under

Iowa

• Dates: August 1-2
• Tax-Free Items:
• Apparel and footwear costing $100 or less per piece

Massachusetts

• Dates: August 9-10
• Tax-Free Items:
  • Approved personal-use retail items with a cost of $2,500 or under
  • Exclusions apply to certain items such as meals, motor vehicles, boats, and any single item exceeding $2,500.

Missouri

• Dates: August 1-3
• Tax-Free Items:
  • Clothing: $100 or less per item
  • School supplies: $50 or less per item
  • Computers: $1,500
  • Computer software: $350 or less
  • Computer peripheral devices: $1,500

Ohio

• Dates: August 1-14
• Ohio’s tax holiday period includes all tangible personal property valued at $500 or less, with some exclusions.
• Tax-Free Items:
  • Clothing, shoes, school supplies, computers, and accessories (up to $500)

South Carolina

• Dates: August 1-3
• Tax-Free Items:
  • Clothing, shoes, and accessories
  • School supplies
  • Computers, printers, earbuds, and headphones
  • Certain bed and bath items
  • Diapers

Texas

• Dates: August 8-10
• Tax-Free Items:
  • Clothing and footwear priced at $100 or under per item
  • Backpacks priced at $100 or below each
  • School supplies: $100 or less per item

Virginia

• Dates: August 1-3
• Tax-Free Items:
  • Clothing and footwear: priced at $100 or below each
  • School essentials: costing no more than $20 per piece

States That Do Not Charge Sales Tax Year-Round

The Trend of Early Back-to-School Shopping

The timing of these sales tax holidays aligns perfectly with a growing trend among consumers: the rise of early back-to-school shopping. According to findings from the National Retail Federation (NRF) and Prosper Insights & Analytics, 26% of back-to-school and college shoppers had already started their purchases by early June.

This figure represents a 22% increase from the previous year and a 17% increase from 2019.

This surge in early shoppingis influenced by various reasons, including the wish to sidestep the rush closer to the start of school and concerns about rising prices. A significant portion of shoppers—74% according to the NRF survey—expressed worry that tariffs and inflation would drive up prices as the year progresses.

Katherine Cullen holds the position of Vice President for Industry and Consumer Insights at the NRF, commented on this trend:

“Customers and retailers alike enjoy the benefits of sales tax holidays. These events drive more foot traffic to stores, leading to higher sales as shoppers purchase not only the items they initially came for but also other products they may not have planned to buy.”

Inflation and the Impact on Back-to-School Shopping

While tax holidays provide some relief, inflation remains a concern for many shoppers.

A separate study by Coresight Research revealed that 68% of consumers reported that inflation would limit the amount they could spend on back-to-school items.

The average shopper for K-12 students budgeted $875 last year, while those shopping for college students expected to spend $1,365.

The NRF also found that 76% of shoppers are anticipating higher prices for the items they need. With inflation and the potential for product shortages on the horizon, shoppers are becoming more cautious and strategic about their spending.

Madhav Pitaliya, an analyst for Coresight Research, noted:

“Back-to-school 2025 is shaped by measured optimism. Consumers are willing to spend more, but economic pressures like inflation and tariffs are pushing them to seek value more aggressively.”

Conclusion

As back-to-school shopping becomes an increasingly complex task amid rising prices, the sales tax holidays in 17 states provide a welcome relief for families preparing for the new school year.

By taking advantage of these tax-free events, shoppers can save significantly on essential items, making it easier to get their children ready for school without breaking the bank.

However, shoppers should remain mindful of inflation and product shortages, which continue to affect the retail landscape. If you live in one of the participating states, be sure to mark your calendar and make the most of these valuable savings opportunities.