Texas Comptroller Glenn Hegar encourages taxpayers to support Texas businesses and to take advantage of the upcoming tax-free weekend.
This year’s Tax-Free Weekend begins Friday, Aug. 5 and runs through midnight Sunday, Aug. 7.
Most clothing, footwear, school supplies and backpacks sold for less than $100 will qualify for tax-free status during the annual tax holiday.
Items can be purchased from stores, online or a catalog and in most cases buyers do not need to supply the seller an exemption certificate to buy qualifying items tax-free.
“Most Texans won’t hear the back-to-school bell for another month, but it’s never too early to take advantage of the opportunity to save money on everything from book bags to ballpoint pens,” Hegar said. “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. As the father of three school-aged children myself, I know how these expenses can add up.”
The sales tax exemption applies only to qualifying items bought during the sales tax holiday. Items purchased before or after the holiday do not qualify for exemption and there is no tax refund available.
Items that do not qualify include items sold for $100 or more, clothing subscription boxes and specially designed athletic or protective-use clothing and footwear, such as football pads or golf cleats.
Other items exempt from tax-free status include clothing or footwear rentals, alterations, items used to repair clothing, jewelry, handbags and other accessories, computers, software and textbooks. However, items such as tennis shoes, jogging suits and swimwear, while designed for athletic purposes, are commonly worn for other purposes and qualify for the exemption.
Cloth and disposable fabric face masks meet the definition of an article of clothing therefore qualify for tax-free status; however, medical grade masks such as N95 masks, do not. If a cloth or disposable fabric face mask is sold with a filter, it still qualifies for tax-free status, but replacement filters are taxable.
The Comptroller’s Office reminds Texas shoppers that delivery, shipping, handling and transportation charges by the seller are part of the item’s sale price.
Because clothing and other items have to be less than $100 to qualify, buyers have to include the item’s total sale price to determine if it can be purchased tax-free.
Buyers purchasing jeans for $95 with a $10 delivery charge for a total price of $105 will have to pay tax on the entire $105 price.
Tax-free weekend has been an annual event since 1999 and has allowed Texans to save millions of dollars in state and local taxes.
The comptroller’s office estimates shoppers will save $112 million in state and local sales tax during the tax-free holiday.