As prices soar along with the Summer temperatures, back-to-school purchases will see a bit of relief from Tennessee’s sales tax during the last weekend of July.
The annual sales tax-free holiday devoted to certain items that are commonly purchased as parents prepare their children to head back to school in August is just weeks away, but mark your calendars now to plan your shopping for maximized savings.
Beginning at 12:01 a.m. Friday, July 26 through 11:59 p.m. on Sunday, July 28, all sales tax, both local and state, are exempt on certain items ranging from clothing to computer sales as listed at the Tennessee Department of Revenue’s website.
Apparel, including uniforms, shoes, and daily clothing items, are exempt when priced at $100 or less. Computers, laptops, and tablets are exempt from sales tax when priced $1,500 or less. School supplies, including backpacks, binders, art supplies, composition books, journals, and writing instruments are also exempt if priced $100 or less.
Tennessee’s state sales tax is 7%, or seven cents on each dollar spent, with local governments capped at a 2.75% tax, or no more than just under 3 cents on each dollar. The combined sales tax of just under 10 cents on each dollar quickly adds up as large purchases are made on single bigger ticket items, like computers, but also as parents keep up with children needing new clothes due to growth and wear.
On a purchase of a $1,500 tablet, the savings would be over $146 and almost $10 on a $100 purchase of a pair of shoes, for instance.
The Volunteer State is not the only state to provide relief for its citizens through sales tax holidays. Tennessee is one of twenty states which has legislatively given a very broad based tax cut that provides true relief without income limitations or stringent requirements.
Alabama’s sales tax holiday occurs July 19-21, with a less generous spending cap for exemptions and the option for local governments to keep the local sales tax in place. Georgia offers no sales tax holiday, but has a lower sales tax of 4%, or four cents per dollar spent, but taxes one’s income just as the federal government does. The Atlanta metro area, however, has a combined state and local sales tax of 8.9% or almost 9 cents on each dollar. Mississippi, Missouri, and Arkansas are other contiguous states neighboring Tennessee which offer similar sales tax holidays to support parents and students. Make your lists; check them twice. It’s not Christmas. But the opportunity to save while buying mandatory purchases is a gift!