It’s the most wonderful time of the year — and no, we’re not talking about Christmas. The Texas sales tax holiday begins in just a few days, providing an ideal moment for residents to indulge in back-to-school shopping, new wardrobe items, and more.
The holiday, which runs from Friday, August 8 to Sunday, August 10, waives sales taxes on an assortment of school supplies, most clothing, footwear, and backpacks, as long as they cost less than $100. This includes products like writing tablets, baby diapers, pajamas, and caps.
During this period, Texas shoppers can buy qualifying items in-store, online, by telephone, mail, or any other means, according to the state comptroller’s office.
Texas places a 6.25 percent state sales and use tax on all retail sales, leases, and rentals of most goods and taxable services, according to the state comptroller’s office. Local taxing jurisdictions such as cities, counties, and special purpose districts can impose up to a two percent sales and use tax, resulting in a combined rate of 8.25 percent, the office’s website states.
Several items are still taxable during the weekend (sadly, we can’t have it all). A few items that do not qualify for exemption include briefcases, jewelry, welder’s aprons (but household ones are tax exempt), and belt buckles. A full list of qualifying and non-qualifying items is viewable on the state comptroller’s office website.
It’s crucial to note that during the sales tax holiday, you can buy qualifying items tax-free, even if they need to be ordered.
“For example, if you pay for an $80 shirt that must be special-ordered or is on back order, and you pick up the shirt after the sales tax holiday, then it still qualifies for the exemption,” the state comptroller’s office states.
Folks should keep in mind that the sale of an item must take place during the specific period for it to be tax-free. This means if the charge to your credit card is declined by the payment processor at 11:00 p.m. on August 10, and you do not resubmit the payment until Monday, August 11, when the deal has expired, the purchase is taxable.
Lastly, shoppers must take into consideration the shipping, handling, and transportation charges of a product, as they all make up an item’s final sale price. Qualifying items must cost less than $100 to be tax exempt, meaning a pair of jeans that costs $90 with an $11 delivery charge is still taxable.
Texans can also check out the retailers they are aiming to hit online before heading out the door. Outlets such as Walmart have created their lists of qualifying items for easy browsing.