U.S. states have summer sales tax holidays

Every year, many states participate in sales tax holidays intended to boost economic activity, says tax tracking company Taxware.

Many of these holidays take place during the back-to-school shopping season. The days give customers a break on tax on certain types of purchases up to a spending limit. But some states offer sales tax relief on items such as computers and software and in states that offer virtually all-encompassing holidays with price thresholds as high as $2,500.

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Some holidays, such as the one in Massachusetts, include virtually all types of tangible personal property sold to consumers, while other states, such as Connecticut, limit the tax break to clothing and footwear only.

In total, 17 states and Puerto Rico have sales tax holidays, each with their own rules.

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Some states don’t pass legislation authorizing the holiday until just before it’s scheduled to take effect, to prevent customers from deferring purchases until the holiday.

Taxware has compiled each state’s tax holiday rules into an interactive infographic.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.