Does Your Summer Include a Sales Tax Holiday?

August 12, 2014

I’m lucky to be only a 20 minute drive from the Delaware line, which is known for tax-free shopping all year long. Whenever I need to make a big purchase, I head out of Pennsylvania to avoid the 6% sales tax.  If you live in a state that has a high sales tax, you may not have that option. 

However, you may find either your state or a bordering state is offering a sales tax holiday, just in time for back to school shopping.  There are 17 sales-tax holidays taking place, spanning anywhere from a couple of days to a full week. During the holiday, states designate certain items as sales tax-exempt, such as clothing or computers. For example, this week, Maryland is waiving their state sales tax of 6% for clothing and footwear of $100 or less.

These sales tax holidays can be a real benefit for families, who are projected to spend an average of $101 on back to school supplies, according to a report from the National Retail Federation.  This equates to close to $4 billion in sales nationwide. If you have a computer, backpack, or new clothes on the shopping list for back to school shopping, take advantage of these sales tax holidays and make sure to pair them with coupons and sales now being offered by many retailers.