Editor: Shannon Cottongame
August 11, 2023
Texas Comptroller Glenn Hegar is reminding shoppers that they can save money on clothes and school supplies during the state’s sales tax holiday scheduled for Friday, Saturday and Sunday, August 11-13.
State law exempts sales tax on qualified items — such as clothing, footwear, school supplies and backpacks — priced below $100, saving shoppers about $8 on every $100 they spend.
The dates of the sales tax holiday and list of tax-exempt items are set by the Texas Legislature.
“As Texans prepare for the back-to-school bell, this is the perfect time to take advantage of the opportunity to save money on everything from blue jeans to ballpoint pens,” Hegar said. “As the father of three, I know how these expenses can add up.”
The comptroller’s office estimates that shoppers will save $136 million in state and local sales tax during this sales tax holiday.
Apparel and school supplies that may be purchased tax free are listed in more detail on the comptroller’s website at TexasTaxHoliday.org.
During the annual sales tax holiday, qualifying items can be purchased tax free online or by telephone, mail, custom order or any other means (including in-store purchases) when either:
• the item is both delivered to, and paid for by, the customer during the exemption period; or,
• the customer orders and pays for the item, and the seller accepts the order during the exemption period for immediate shipment, even if delivery is made after the exemption period ends.
Delivery, shipping, handling and transportation charges by the seller are part of the item’s sales price.
Since clothing, backpacks and school supplies have to be less than $100 to qualify, you have to look at the item’s total sales price to determine if you can buy it tax free.
For example, if you buy a pair of jeans for $95 with a $10 delivery charge for a total price of $105, because the total price is more than $100, tax is due on the entire $105 price.
For more information about the holiday, visit the website TexasTaxHoliday.org.
