Don't Mess With Taxes

UPDATED, Aug. 14, 2021: This post was published originally on July 15 in advance of the 2021 back-to-school state sales tax holiday season. Now, almost a month later, the 2021 sales tax holiday season wraps up this weekend with three events.

Connecticut's and Massachusetts' no-tax events started today. Maryland's week-long tax holiday ends at the stroke of midnight tonight.

You can find more on each state's tax holiday in the table below. It has details and handy links for all 18 of this summer's tax-free shopping events, whether completed or finally under way.

It's mid-July, a particularly important date this year for parents.

No, I'm not talking about the Advance Child Tax Credit payments that started going out today. I'm talking about the imminent arrival of the 2021-22 school year.

With the COVID-19 pandemic somewhat under control — Be gone, Delta variant and everyone please get vaccinated! — schools across the country will be opening this year.

Yes, that sound you hear over the internet is millions of parents celebrating.

Tax holidays, too: That other sound you hear is taxpayers, both parents and child-free, celebrating, too, because the annual back-to-school tax holidays also are on the horizon.

This year, 17 states and Puerto Rico are holding the state and, in many cases, local sales-tax-free events.

Alabama and the U.S. territory Puerto Rico kick off the summer, back-to-school no-tax season this weekend. The Yellowhammer State's tax-free weekend is this Friday, July 16 through Sunday, July 18. The no-tax event in America's Caribbean island is Friday, July 16 and Saturday, July 17.

Similar tax-free days are scheduled for the end of July in Florida, Mississippi, Tennessee, and West Virginia.

The remaining dozen 2021 back-to-school (and more in a couple of places) tax holidays are in August, nearer the kiddos actual return to classrooms … of course following the Centers for Disease Control (CDC) and Prevention's recently updated guidance for educators.

The table below offers highlights of each holiday, along with links to state (and territory) tax department material that has specifics about the no-tax shopping days.

Double check dates, amounts: I appreciate your giving the table above a look, but do click on the links. Of particular importance are the dates themselves.

Some states start events on a Friday, but end on Saturday instead of running through the full weekend. Others don't start excluding weekend sales tax collection until Saturday.

Also note the details in the links on the eligible and ineligible items. You don't want to head to a store and discover an item you thought was tax free during your state's tax holiday is, in fact, taxable.

In addition to the certain items that are tax free, take note of the price limits. Some states classify things as a certain price or less. Others designate items that are less than.

Yep, getting a few dollars tax savings can be complicated, so be ready. An earlier post on ways to maximize your sales tax holiday savings can help.

So get review the table. Mark your calendars. Make your lists. Then happy tax-free shopping!

You also might find these items of interest:

• Tax holidays are popular, but bad tax policy
• City and other local taxes add to overall sales tax takes
• 5 sales-tax-free states are perfect places to shop year-round

Advertisements