TEXAS (KFDX/KJTL) — With a new school year on the horizon and inflation continuing to raise the price of goods, families in several states will have the opportunity this weekend to finish up their back-to-school shopping and save a little money while doing so.
Since 1999, Texans have been able to take advantage of the state’s annual Sales Tax Holiday to save money by applying a sales tax exemption on qualifying items purchased for the new school year.
According to a press release from the office of Texas Comptroller Glenn Hegar, Texas shoppers will save an estimated $112 million in state and local sales tax in 2022.
“With inflation driving prices higher on just about everything, this sales tax holiday provides Texas families some small relief managing the costs associated with kids heading back to the classroom,” Hegar said. “As the father of three school-aged children myself, I know how these expenses can add up.”
Here’s your complete guide to this year’s annual Tax-Free Weekend.
When is the Sales Tax Holiday?
Texas’ tax-free weekend is set to begin on Friday, August 5, 2022 and will conclude at midnight on Sunday, August 7, 2022. The dates for the sales tax holiday are determined by the Texas state legislature every year.
Several other states will participate in a tax-free weekend during the same weekend, including Oklahoma and New Mexico, though their guidelines may differ from the ones set for Texas.
A list of all sales tax holidays across the country can be found on the Federation of Tax Administrator’s website.
What items qualify to be tax-free?
Most clothing, footwear, certain school supplies and backpacks sold for less than $100 qualify for tax exemption during tax-free weekend.
Also included in the tax exemption during tax-free weekend are face masks and diapers.
The exemption will apply to each eligible item sold for under $100, and there is no limit to the number of qualifying items you can buy. Shoppers will not need to give the seller an exemption certificate in most cases.
A full list of items that qualify for the exemption can be found on the Comptroller’s website. Click on the corresponding buttons below to find those lists:
What isn’t included in tax-free weekend?
Sales tax exemptions during tax-free weekend only apply to qualifying items purchased during the weekend of August 5 thru 7.
Items purchased before or after the sales tax holiday do not qualify for the exemption, and there is no tax refund available.
Items that do not qualify for tax exemption include:
- Items sold for $100 or more
- Clothing subscription boxes
- Clothing or footwear specifically designed for athletic activity or protective use
- Rental, alteration or cleaning services for clothes or footwear
- Clothing repair items (fabric, thread, yarn, buttons, snaps, hooks, zippers, etc.)
- Jewelry, handbags, purses, briefcases, and luggage
- Umbrellas, watches, wallets, and other accessories
- Computers or tablets
- Software
- Textbooks
What about online purchases?
Purchases made online, by telephone, by mail, by custom order or by any other means are included in the sales tax holiday in Texas.
According to the Comptroller’s office, the sale of the item must take place during the specified dates of August 5, 6, or 7. If the items are purchased during tax-free weekend, they will qualify for tax exemption, even if the shipping date falls after the weekend.
Shipping, handling, and delivery charges are considered part of the item’s sale price when determining eligibility for tax exemption.
The total price of the item, including shipping and handling, must be under $100 to qualify for tax exemption.
What if a qualifying item is still taxed?
If sales tax is charged on a qualifying item during the sales tax holiday, the Comptroller’s office said a refund can be requested of the tax paid.
Customers will need to ask the seller for a refund, which they can either grant to the customer, or they can provide the customer with Form 00-985, which allows the purchaser to file the refund claim directly with the Comptroller’s office.
A copy of Form 00-985 can be downloaded from the Comptroller’s website.
