Sales Tax Exemption on Eligible Student School Supplies, Clothing, Shoes and Backpacks Priced Under $100 This Weekend in Texas
If you plan to buy clothes or school supplies, waiting until this weekend to do so could prove financially beneficial as this weekend is the annual Texas sales tax holiday.
State law exempts sales tax on qualified items — such as clothing, shoes, school supplies and backpacks — priced under $100, saving shoppers approximately $8 on every $100 spent. The Comptroller’s Office estimates that buyers will save $112 million in state and local sales taxes during this sales tax holiday.
“With inflation driving up prices on just about everything, this sales tax exemption offers Texas families a little relief to manage the costs associated with getting kids back to school. As a father of three school-age children, I know how much those expenses can add up,” Texas Comptroller Glenn Hegar said of the upcoming sales tax exemption.
First introduced in 1999, the Back-to-School Sales Tax Exemption allows Texas buyers (any buyer making a qualifying purchase in Texas) to save money for a weekend by removing the sales tax on eligible school supplies, clothing, shoes, and student backpacks priced under $100. Sales tax exemption dates and the list of tax-exempt items are set by the Texas Legislature.
This year, the sales tax holiday begins Friday, August 7 and continues until Sunday, August 7. It’s good for qualifying purchases in Texas in-store, online, by phone, mail, or custom order provided the qualifying purchase is paid for by 5-7, 2022. Qualifying purchases can be paid by cash, check, by card or wire transfer to a Texas business. Those ordering items that need to be shipped should keep in mind that shipping costs are factored into the overall cost, which must be less than $100, and the tax exemption only applies. to eligible items purchased in Texas. The ship date does not count as long as the purchase is processed during the tax-free holiday weekend.
For example, if a buyer enters their credit card information on an online shopping website on Sunday, August 7, 2022 at 5 p.m. to purchase eligible school supplies, but the school supplies will not ship until Friday August 12, and will not arrive until Tuesday, August 16, the purchase still qualifies for the exemption. However, if the credit card charge is declined by the payment processor at 11:00 p.m. on Sunday, August 7, and the buyer does not resubmit payment by Monday, August 8, the purchase is taxable.
If qualifying items are purchased August 5-7 as a rain check, layaway, or final payment on a layaway, payment at that time would also be tax-exempt regardless of when. where items are shipped, arrive in stock, it should be tax-free, according to the Texas Comptroller of Accounts.
So what items under $100 are zero-rated during the holidays? Most shoes and clothes sold for less than $100. The exemption applies to each qualifying item sold for less than $100, and there is no limit to the number of qualifying items that can be purchased at one time.
For example, if you buy two shirts for $80 each, each shirt qualifies for the exemption because each costs less than $100, even though the total purchase price is $160.
Cloth and disposable cloth masks meet the definition of a garment and are exempt from sales tax during the upcoming sales tax holiday. However, industrial or medical grade masks (N95 or other masks designed as personal protective equipment) or other similar personal protective equipment are not exempt during the sales tax exemption. If a cloth or disposable cloth face mask is sold with a filter, the mask is exempt during holidays; however, replacement filters are taxable.
Additional clothing items priced under $100 that qualify for the tax exemption to understand:
- Household aprons
- baby bibs
- baby clothes
- Belts with attached buckles
- Smocks and shirts: shirts and hoodies, jerseys (baseball, football, etc.), bowling shirts, sweaters
- Boots: general purpose, cowboy and hiking
- Bow ties, ties, neckties, scarves, wraps, shawls
- Camping clothes
- Caps (baseball, fishing, golf, knit)
- chef uniforms
- Fantasy costumes for children
- office clothes
- Coats and shawls
- Diapers (adult and baby/cloth and disposable,)
- Dresses and skirts (including golf dresses and tennis skirts)
- Earmuffs for cold weather
- Gloves (general, clothing, leather)
- Jackets, windbreakers, coats, shawls,
- Graduation caps and gowns
- Gymnastics costumes and uniforms, workout clothes
- Hats (including knitted)
- Shirts and Hoodies
- Hosiery (including support hosiery) and tights
- Hunting vests
- Jeans, trousers and shorts: jogging trousers and clothing, painter’s trousers, trousers, tennis shorts, trousers
- Masks: costumes, cloth masks and disposable cloth masks
- Nightgowns, nightgowns, pajamas, sleepwear
- Raincoats, ponchos and rain hats
- Religious clothing, office clothing
- Scout uniforms
- Suits, pants, jackets
- Footwear: General shoes, boat shoes, dress shoes, jellies, running shoes without spikes, safety shoes suitable for everyday use, sandals, slippers, sneakers and tennis shoes, walking shoes, ellipticals, flip flops (rubber straps) ,
- Socks: athletic, soccer
- Underwear: bras, briefs, tights, underpants, undergarments, undershirts, leotards, tights
- Uniforms: school, work, nurse, waitress, military, post, police, fire, work clothes and uniforms (except rental)
- Vests: General, Fishing without flotation, Hunting
Clothing items that do not benefit from the tax exemption include clothing subscription boxes; specially designed sporting activities or protective clothing or footwear, rental of clothing or footwear; alteration (including embroidery) and cleaning services; and items used to make or repair clothing, such as fabric, thread, buttons, snaps, hooks and zippers.
Among the cclothes, shoes and other clothing items specifically listed as they are NOT eligible for tax exemption are:
- Swimming caps
- Baseball, sports and athletics accessories and equipment: Cleats, pads and pads (knee, elbowsoccer, shoulder, hockey, soccer), Gloves, Pantsswimming fins, football pants, sports helmets (including bicycle and motorcycle), golf handbags, shin guards
- Belt buckles, belts for weightlifting
- Cloth, lace, knitting yarn, fabrics, zippers, snaps, hooks, buttons, yarn, iron-on patches, patterns, embroidery, ribbons, shoulder pads (for dresses, jackets, etc.) or other items used to make or repair clothes. .
- Corsages, Boutonnieres
- Dry cleaning services
- Earmuffs: noise canceling or noise canceling
- Gloves: baseball, batting, biking, garden, golf, hockey, rubber, surgery, tennis, work
- Hair accessories: barrettes, hairpins, ponytail elastics, hair bows, hair clips, headbands, head nets, Ribbons,
- Handkerchiefs, Pouches
- Ice skates, roller skates, inline skates
- Life Jackets & Vests, Personal Flotation DevicesWet and dry suits
- Masks: N95, welder, referee, swimming or other similar personal protective equipment, swimming masks and goggles,
- Monogram Services
- Personal protective equipment and safety accessories: chest protectors, goggles, hard hats, dust or paint respirators and accessory supplies, gloves, safety clothing (worn in hazardous jobs), safety glasses, safety shoes ( that cannot be worn on the street), bulletproof vests,
- Rented clothing (including uniforms, formal wear, costumes)
- Clothing or shoe repair, including shoe shiners
- Shoes and boots: ballet flats, baseball cleats, cleated, spiked or spiked bicycle shoes, climbing boots, rubber work boots, ski boots, fishing boots and waders, bowling shoes (rented or sold ), golf shoesOvershoes and galoshes, soccer shoes, golf shoes, jazz and dance shoes, tap/dance shoes, track cleats,
- Shoe accessories or repairs: insoles, inserts, laces
- Sunglasses (except prescription)
- Vests: bulletproof, flotation, diving, water skiing
- Watches, watch straps, wallets, handbags,
Similarly, student backpacks sold for less than $100 each are tax-exempt, but this does not extend to luggage. Wheeled backpacks and messenger bags are included among the exempt items, indeed up to 10 backpacks can be purchased duty-free at a time during the duty-free weekend (without providing a certificate of waiver completed). The tax law specifically lists among the items that are not eligible for the tax exemption this weekend: framed backpacks, luggage, briefcases, sports bags, gym bags, duffel bags , computer bags, handbags.
Also on the list of items people will have to pay the tax on, regardless of the ticket price this weekend, are jewelry, handbags, purses, briefcases, luggage, umbrellas, wallets, watches and other accessories.
From school supplies that ARE on the tax-exempt list to understand:
- Blackboard chalk
- Book bags
- Composition notebooks
- Folders – stretch, pocket, plastic and manila
- Glue, paste and dough sticks
- Card boxes
- Kits ** (For school supply kits that contain exempt items, as well as taxable items, taxation depends on the value of the exempt or taxable items they contain. There is no limit to the quantity of school supplies in a kit, but if the value of the exempt items is greater than the value of the taxable items, the kit is exempt (if the value of the taxable items is greater than the value of the exempt items, then the kit is taxable).
- Legal blocks
- Lunch boxes
- Markers (including dry erase markers)
- Paper – loose-leaf lined notebook paper, copy paper, graph paper, tracing paper, manila paper, colored paper, poster board, and construction paper
- Pencil boxes and other school supply boxes
- Writing tablets
Supplies that are NOT exempt this weekend to understand: