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Two fewer states are offering families back-to-school sales tax holidays this year, even though families are still suffering under the weight of inflation.
Seventeen states either have already had or plan sales tax holidays to give families some relief from soaring prices. That's down from down 19 last year after Illinois and Virginia bowed out.
Although annual inflation cooled in June to 3% from 9.1% last year, the cost of school supplies has climbed 28% from last year, according to a study by money transfer company WorldRemit. That’s enough to make 54% (up from 46% last year when inflation was at a 40-year high) worry they may not be able to buy all the items their children need for school, a savings.com survey of 483 U.S. adults with children attending K-12 schools in July showed.
"Although parents were willing to endure higher prices last year for replenishing back-to-school items after the pandemic, 18 months of inflation have changed their tune,” said Nick Handrinos, head of Deloitte LLP’s retail and consumer products practice, in a report. “Uneasiness about the economic situation is creating price sensitivity.”
A popular way to save money each year is to take advantage of sales tax holidays to cut costs, which 66% of parents intend to do, savings.com said. Below is a list of participating states and what's tax-free, according to the Federation of Tax Administrators. Rules and dates vary by state, so check the state’s website for the most updated information. In some instances, local taxes may still apply.
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Alabama
July 21-23
What's tax-free:
Arkansas
Aug. 5-6
What’s tax-free:
Connecticut
Aug. 20-26
What's tax-free:
Florida
July 24–Aug. 6
What's tax-free:
Iowa
Aug. 4-5
What's tax-free:
Maryland
Aug. 13-19
What’s tax-free:
Massachusetts
Aug. 12-13
What’s tax-free:
Mississippi
July 28-29
What’s tax-free:
Missouri
Aug. 4-6
What's tax-free:
New Jersey
Aug. 26- Sept. 4
What’s tax-free:
New Mexico
Aug. 4-6
What’s tax-free:
Ohio
Aug. 4-6
What’s tax-free:
Oklahoma
Aug. 4-6
What’s tax-free:
South Carolina
Aug. 4-6
What’s tax-free:
Tennessee
July 28-30
What’s tax-free:
Texas
Aug. 11-13
What’s tax-free:
West Virginia
Aug. 4-7
What’s tax-free:
Best deals:Where to find back-to-school deals: Discounted shopping at Target, Walmart, Staples and more
Virginia’s tax holiday expired on July 1, and its General Assembly didn’t extend the guidelines or pass new ones in its most recent session. So, "there won’t be a 2023 Sales Tax Holiday like we typically have in early August,” a spokesperson said.
Illinois’ legislatures also didn’t renew its back-to-school tax holiday because inflation’s easing.
“The Inflation Reduction Act is working as intended, and we are seeing inflation ease throughout the nation,” said Maura Kownacki, spokesperson for the Illinois Department of Revenue. “Governor (J.B.) Pritzker was pleased to provide one-time relief during a period of uniquely high inflation, and with inflation coming down, the latest budget continues to invest in working families with historic investments early childhood education and financial aid for higher education.”
Illinois, though, continues to offer a 25% education expense tax credit on eligible back-to-school expenses exceeding $250 on individual income tax returns. The total credit cannot exceed $750, regardless of the number of qualifying children.
Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her [email protected] and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday.
Protect your assets:Alabama What's tax-free: Arkansas What’s tax-free: Connecticut What's tax-free: Florida What's tax-free: Iowa What's tax-free: Maryland What’s tax-free: Massachusetts What’s tax-free: Mississippi What’s tax-free: Missouri What's tax-free:New Jersey What’s tax-free: New Mexico What’s tax-free: OhioWhat’s tax-free: Oklahoma What’s tax-free: South Carolina What’s tax-free: TennesseeWhat’s tax-free: Texas What’s tax-free: West Virginia What’s tax-free: Best deals: