As students and teachers prepare for the start of another school year, Tennessee families will have an opportunity to stretch their education budgets during the state’s annual Sales Tax Holiday, which runs from 12:01 a.m. Friday, July 31, through 11:59 p.m. Sunday, Aug. 2.
The three-day event allows shoppers to purchase many back-to-school essentials without paying state or local sales tax, helping parents save money on clothing, classroom supplies, and technology before students return to school. The tax holiday has become a fixture of Tennessee’s back-to-school season, marking its 20th year since the program was first introduced in 2006.
For many families, the savings come at a critical time of year when purchasing school clothes, backpacks, notebooks, calculators, and computers can place a significant strain on household budgets.
Qualifying clothing and school supplies priced at $100 or less per item are exempt from sales tax during the holiday. In addition, computers, including laptops and tablets, priced at $1,500 or less may also be purchased tax-free. The exemption applies not only to purchases made in stores but also to eligible online orders placed during the holiday period.
Gov. Bill Lee encouraged Tennesseans to take advantage of the annual tax break as they prepare students for the upcoming academic year.
“Tennessee’s strong track record of fiscal stewardship has allowed our state to cut taxes and put dollars back in the pocket of hardworking Tennesseans,” Lee said. “I encourage every family to take advantage of back-to-school savings, and thank the General Assembly for their partnership to provide direct financial relief for taxpayers.”
Revenue Commissioner David Gerregano said the program has become a longstanding tradition that benefits families across the state.
“Tennessee’s sales tax holiday has become a back-to-school tradition for families,” Gerregano said. “This weekend gives Tennesseans an easy way to save on many back-to-school essentials.”
The tax holiday covers a wide variety of items students use throughout the school year. Eligible clothing includes everyday apparel such as shirts, pants, dresses, socks, and shoes, provided each item costs $100 or less. School and art supplies also qualify if individually priced at $100 or less. Eligible items include backpacks, binders, crayons, notebooks, paper, pencils, pens, rulers, paints, drawing pads, clay, and artist paintbrushes.
Technology purchases can provide some of the biggest savings for families with students entering middle school, high school, or college. Computers for personal use, including desktop computers, laptop computers, and tablets costing $1,500 or less, qualify for the exemption.
However, not every purchase made during the weekend is tax-free. Clothing items costing more than $100 do not qualify, and retailers cannot split the price of a single item into multiple transactions to meet the price limit. Accessories such as jewelry and handbags, along with sports and recreational equipment, remain taxable.
Likewise, certain computer-related purchases are excluded from the holiday. Individually purchased software, printer ink and toner, flash drives, compact discs, and household appliances continue to be subject to sales tax.
State officials also remind shoppers that purchases must be for personal use, not for business or commercial purposes, to qualify for the exemption.
Education advocates often note that while the sales tax holiday offers only a temporary break, it can help reduce the financial burden on families as schools issue supply lists that continue to grow in both size and cost. For households with multiple children, savings on clothing, classroom supplies, and computers can add up quickly over the course of a weekend.
Teachers may also benefit by purchasing classroom materials tax-free. Many educators spend their own money each year to stock classrooms with extra notebooks, pencils, markers, art supplies, tissues, and other items students need during the school year. Buying qualifying supplies during the tax holiday can help offset some of those personal expenses.
Consumers are encouraged to review the state’s list of qualifying and non-qualifying items before shopping to ensure their purchases meet the requirements. The Tennessee Department of Revenue provides detailed alphabetical lists of exempt items, taxable items, and additional guidance to answer common questions about the program.
Additional information, including complete lists of eligible purchases and frequently asked questions, is available on the Tennessee Department of Revenue’s Sales Tax Holiday webpage at www.tntaxholiday.com.
