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Special section Save on back-to-school shopping

Find out if your state offers tax breaks on back-to-school shopping and what the rules are for the discount.

2007 tax holidays schedule

Sales tax holidays offer shopping bargains
 

Texas

  • Tax holiday dates: Aug. 17-19
  • General exempt items: Most clothing and footwear priced less than $100 will be tax-exempt this weekend. The break applies to items individually, not a shopper's total purchase amount. That means a customer escapes the state's combined local and state sales tax, which could be as high as 8.25 percent, on each of a dozen shirts each priced at $99.99. But the full tax is due on a shirt that sells for $100.
  • Notable exceptions: Despite the sports fanaticism of Lone Star State residents, only football and baseball jerseys are tax-exempt. Other associated items (pads, helmets, mitts, cleats, etc.) remain taxable, as do most other clothing and footwear used primarily for athletic activities or protection. Accessories such as jewelry, watches and handbags also are excluded from the sales-tax holiday.

More information is available on the Texas' sales-tax holiday Web site.

Virginia

  • Tax holiday dates: Aug. 3-5
  • General exempt items: Shoppers in the Old Dominion State will get a break on school supplies that cost $20 or less per item and on clothing and shoes priced at $100 or less per item. Internet purchase also will be tax-exempt if the item is both delivered and paid for during the exemption period or the customer orders and pays for the item and the seller accepts the order during the holiday period for immediate shipment, even if delivery is made after the tax-holiday. The state will hold a second sales-tax holiday Oct. 5-8 for energy efficient products priced at $2,500 or less.
  • Notable exceptions: Sport and recreational equipment is not exempt. Neither are apparel accessories such as handbags, briefcases and jewelry. Businesses may choose to pay the tax on nonexempt items for their customers and advertise those items as tax-free.

More information is available on Virginia's sales-tax holiday Web site.

Washington, D.C.

  • Tax holiday dates: Aug. 4-12
  • General exempt items: During the national capital's sales-tax holiday, shoppers can escape the 5.75 percent tax on each school item, pair of shoes, article of clothing or accessory, including jewelry and handbags, that costs $100 or less. The sales-tax exemption applies to each eligible item, regardless of how many items are on the bill. It also applies to layaway sales. Just in time for holiday shopping, the District of Columbia will hold a second sales-tax-free event from Nov. 23 through Dec. 2.
  • Notable exceptions: The tax exemption does not apply to taxable services, such as alterations performed on clothing, accessories or footwear. Also, D.C. tax officials specifically note that sales tax will be collected on skis, swim fins, roller blades and roller-skates purchased during the holiday period.

More information is available on D.C.'s sales-tax holiday Web site.

Freelance writer Kay Bell writes Bankrate's tax stories from her home
in Austin, Texas, and blogs each day on tax topics at Don't Mess With Taxes.

-- Updated: Aug. 2, 2007
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