The Texas back-to-school sales tax holiday begins Friday, Aug. 11, and lasts through Sunday, Aug. 13. Consumers can shop for school supplies, saving up to 8.25% sales tax, on qualifying items. Other everyday items are also tax-free.
Read on for what’s included in the sales tax exemption and what to know about online purchases.
“WE’RE IN THE THICK OF IT”
With three kids, headed to three different schools, Teia Collier has homework.
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“I’ve got a 17-year-old, 15-year-old and a nine-year-old,” Collier said. “We're not ready yet, but we will be. School starts on Monday, we will be. Back to school shopping? We're in the thick of it.”
Collier writes about budgeting on her blog, DallasSingleMom.com, and said she’s shopping sales to stock up for the start of school and the second semester.
“School supply prices are probably some of the best times to get things for cheap, right? The things that I know they're going to run out of: pens, pencils, crayons, markers, highlighters? Stockpile now,” said Collier.
Collier said she has boxes, set aside for each child at home, stocked with items they will need throughout the school year.
“Spirals, composition notebooks, flash drives, backup headphones, because without fail, something bizarre happens to headphones,” explained Collier.
She said it’s how she avoids overspending later in the school year if she’s crunched for time.
SALES TAX EXEMPTIONS
This fall, the National Retail Federation estimates families with kids in elementary through high school plan to spend an average of around $890 on back-to-school items. It adds up to $25 more than last year and around $225 more than ten years ago. The NRF reports that demand for electronics is driving much of back-to-school spending, saying about 69% of shoppers expect to buy electronics or other computer-related items.
During the sales tax holiday in Texas, big-ticket items like laptops are not tax-free, but consumers won’t pay sales tax on many other supplies including school backpacks, lunchboxes and back-to-school kits.
The Texas Comptroller’s Office published this list of items, breaking down what items are tax-free. You’ll see many clothes and shoes are tax-free, marked (E) for tax exempt. That includes workout clothes, golf skirts, leotards and tights.
Uniforms for schools, chefs, nurses, wait staff, military, postal service, police and fire are also tax-exempt.
“If you've got babies in the house, diapers are tax-free. If you have a cook in the house, aprons are tax-free. If you're a nurse, nurses' uniforms are tax-free,” explained Texas Comptroller of Public Accounts Spokesperson Kevin Lyons.
"There are a lot of things that are on the list that have nothing to do with school. You can still take advantage if you are done with school, if you don't have any kids in school," Lyons added.
The comptroller’s office explains an item can’t cost more than $100 to qualify for the sales tax exemption. For example, if a pair of jeans costs $110, the consumer would be charged sales tax for the jeans.
Before hitting the stores this weekend, look over the list to avoid surprises. For example, baseball caps are tax-free while baseball helmets, listed with a (T) for taxable, are not.
If you’ve usually used the back-to-school tax-free weekend to stock up on diapers and wipes, you still can. Keep in mind legislation eliminating sales tax on items that include diapers, wipes, and maternity clothes takes effect in Texas on September 1.
ONLINE PURCHASES
The sales tax holiday this weekend applies to online purchases too, as long as the customer places the order, enters payment information and the seller accepts the order for immediate shipment. The sales tax is waived on qualifying purchases even if the item is delivered later.
“As long as the vendor accepts your information during that time frame, they shouldn't be charging you tax,” Lyons said.
If you’re charged a delivery fee, it counts toward the $100 limit. For example, if a pair of blue jeans cost $95 dollars and shipping is $7.99, that puts you over the $100 limit and sales tax is charged.
NBC 5 met parent Marco Sanchez at a Mesquite Walmart during a school supply shopping trip last week. Two of his kids attend Mesquite ISD which started classes on August 7, ahead of the sales tax holiday. He said he preferred to shop in person.
“Sometimes I have questions. I can ask someone who works in the store or I can ask some parents,” Sanchez said.
He said it’s also an opportunity to commiserate with fellow parents in the last days of summer break.
“I like to see how faces look, like, other people stressed, like me,” Sanchez laughed. “I'm not the only one.”
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