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A sales tax holiday can save you a good chunk of money — if you know when it is and how it works. Here's what you need to know to take advantage of a sales tax holiday. In 2020, the first few weeks of August are opportunities to save money in many states.
A sales tax holiday, also known as a tax-free weekend, is a period of time during which many states remove sales tax on certain types of items, such as apparel, computers and school supplies. Many states hold their no-tax holidays in and around August, just in time for back-to-school shopping.
Sales tax holidays are limited to a couple of days in most states — hence the name tax-free weekends — and typically restrict eligible purchases by criteria such as product and price. For example, you might be able to purchase computer models that cost up to $1,000 tax-free, but not models that cost more.
Sales tax holidays vary by location — and not every state has one. In some cases, the state sales tax may be zero during the holiday, but stores might still have to collect a city or local sales tax. Keep in mind that some states already don't collect a state sales tax. Local governments (the city or county, for example) can still levy tax in those states, though.
Here’s a look at the states with sales tax holidays in 2020 and the items that will be tax-free, according to the .
Here are some tips for leveraging sales tax holidays to save on back-to-school shopping: