Sales Tax Holidays 2025: Save on Essentials

During times like these, every dollar counts. Sales Tax Holidays 2025 give shoppers a chance to save by skipping the tax on essentials they were already planning to buy.

What Is a Sales Tax Holiday?

Many states offer sales tax holidays—often in July or August—where they exempt certain purchases from sales tax. While sometimes marketed as “Back-to-School” events, the savings can apply to a wide range of everyday essentials.

What Items Are Usually Exempt?

Of course, the states differ in their implementation. But it is not uncommon to find exemptions from sales tax on the following items purchased during these periods.

• Clothing
• Footwear
• School and office supplies
• Computers and accessories

Why Do States Offer Sales Tax Holidays?

States use sales tax holidays to give consumers a break and stimulate retail sales. For businesses, it often means increased foot traffic and larger purchase volumes. Even if you don’t sell school supplies, many common items like apparel, electronics, or accessories might qualify.

Which States Are Participating in 2025?

Click your state below to see if it’s offering a sales tax holiday this year:

• Alabama
• Arkansas
• Connecticut – 2025 dates not yet announced; link reflects 2024 information.
• Florida
• Illinois – Suspended for 2023 & 2024. A potential return is being discussed in the legislature for 2025.
• Iowa
• Maryland – 2025 dates not yet announced; link reflects 2024 information.
• Massachusetts
• Mississippi
• Missouri
• New Mexico
• Ohio (refer to updates on the Ohio Department of Taxation site)
• Oklahoma
• Puerto Rico
• South Carolina
• Tennessee
• Texas
• Virginia (2025 status TBD)
• West Virginia

Be sure to check each link for current details and lists of qualifying items.

Multi-State Retailers: Watch for Variations

If your business operates in multiple states, keep in mind that rules vary. One state may exempt computers under $1,000, while another doesn’t include them at all. This complexity makes Sales Tax Holidays 2025 more difficult to manage without the right systems in place.

How Businesses Can Prepare

To maximize the benefit of Sales Tax Holidays 2025, businesses should:

• Confirm which items qualify and under what price caps
• Update POS systems to apply the correct tax rate
• Train staff on temporary exemptions
• Promote qualifying products on social media or your website
• Plan inventory to meet expected demand

Need Help Navigating Sales Tax Compliance?

Sales tax holidays are just one of many compliance challenges for businesses operating in multiple states. If you’re struggling to keep up with sales tax rules, Clarus Partners can help.

From sales tax compliance to exemption certificate management and audit defense, we provide a complete solution tailored to your needs.

📞 Contact us to learn how we can simplify your indirect tax process and keep you compliant across the country.