For business owners in most states, collecting and remitting sales tax is part of the job description. But on select dates throughout the year, your customers can take advantage of a sales tax holiday.<\/p>\n
<\/p>\n As a business owner, you must know about and adjust your collections process for sales tax holidays.<\/p>\n Read on to learn what is a sales tax holiday, the dates by state, and how you can maximize your revenue during a tax holiday.<\/p>\n Sales tax is a pass-through tax<\/a> that businesses in most states collect from customers at the point of sale (POS). The tax is a percentage of the customer\u2019s bill tacked on to their purchase total.<\/p>\n Although businesses don\u2019t contribute to sales taxes, they are responsible for remitting sales tax to the proper government agency.<\/p>\n Sales tax laws<\/a> by state vary. States have different:<\/p>\n Not all states have sales tax. The following states do not<\/strong> have a state-mandated sales tax:<\/p>\n Hawaii and New Mexico also do not have a sales tax. However, they have similar taxes known as general excise and gross receipts taxes<\/a>. And New Mexico has a sales tax holiday, exempting customers from the gross receipts tax.<\/p>\n A sales tax holiday is a short-term exemption from state sales tax. During a sales tax holiday, you do not collect sales tax from customers.<\/strong> <\/p>\n This period could be a sales tax-free day, tax-free weekend, or no-tax week. There are also sales tax-free periods that can last for a year or longer. <\/p>\n The length of a sales tax holiday depends on the state you operate in. Keep in mind that not all items are sales-tax exempt during a sales tax holiday.<\/p>\n Not all states have a sales tax holiday. And participating states have different rules for exemptions.<\/p>\n State rules can vary in regards to:<\/p>\n If you do business in a state with a sales-tax-free weekend, week, or day, you need to know the rules.<\/p>\n Before your business can participate in a no-sales tax day, weekend, week, or period you must prepare. Make sure you know:<\/p>\n Keep in mind that not all states have sales tax holidays. And not all states have sales tax to begin with.<\/p>\n Need help keeping track of your state\u2019s no-tax weekend, week, or day? Use the chart below to find out which states have a sales tax holiday in 2025 and see examples of exempt items. <\/p>\n Keep in mind that some states (e.g., Texas) may have multiple sales tax holidays throughout the year.<\/p>\n Consult the state sales tax holiday for more information, including a complete list of items included and maximum amounts for exemptions.<\/p>\n February 21 \u2013 23<\/p>\n<\/td>\n July 18 \u2013 20<\/p>\n<\/td>\n TBD<\/p>\n<\/td>\n Keep in mind that the sales tax holiday generally begins at midnight or 12:01 a.m. on the start date and ends at 11:59 p.m. or midnight on the end date.<\/p>\n States also typically set a specific time frame for the sales tax holiday. For example, Ohio\u2019s sales tax holiday is on the first Friday, Saturday, and Sunday of August each year, if budget allows.<\/p>\n Again, sales tax holidays may not exempt you from local sales tax. Check with your state and locality for more information on sales tax holidays.<\/p>\n Although a sales tax-free weekend or day are designed to benefit consumers, business owners can benefit from them, too. But, you must ensure you stay on top of your responsibilities.<\/p>\n Try the following tips to make the sales tax holiday work for your business.<\/p>\n If there\u2019s a sales tax holiday in your state, let your customers know you are participating.<\/p>\n Promote the items that are exempt from sales tax in your:<\/p>\n You can also hold special promotions to use the sales tax holiday to your advantage. In addition to the tax-free savings, you may offer discounts or coupons to draw customers in.<\/p>\n If you want to really make your business stand out, you can absorb all sales tax. This means that you pay taxes on items the state does not include in its sales tax holiday. Before absorbing sales tax, check with your state to verify it\u2019s legal.<\/p>\n During a tax-free weekend, week, or day, collect customer information and add them to your customer base. That way, you can advertise future specials, let customers know what\u2019s new, or create customer loyalty programs.<\/p>\n When customers are expecting a sales-tax-free shopping experience, the last thing they want is a confused employee telling them differently.<\/p>\n Make sure all your employees are aware of the sales tax holiday dates and rules. Accidentally collecting sales tax from customers can lead to distrust. Not to mention, you\u2019ll probably have to do some extra work to reverse the sale if customers realize you charged them after they pay.<\/p>\n Inform your employees about the sales tax holiday beforehand. Your business might be busy during the holiday. To reduce mistakes and stress, talk to employees about which items are tax-exempt and what to do at the point of sale.<\/p>\n Most POS systems can handle sales tax holidays. But, you may need to manually enter the programming information into it (e.g., date and times to not charge sales tax).<\/p>\n If you use a POS system<\/a>, make sure you program it before you open during the no-tax day, weekend, or week. And, don\u2019t forget to change the system back or set an expiration for the tax-free period.<\/p>\n You are responsible for recording sales tax in your books. Sales tax accounting<\/a> records are critical when you go to remit the taxes to your state or local government. Review your records to ensure you remit the correct amounts.<\/p>\n Sales tax accounting becomes especially important (and tricky) during sales tax holidays. You may have some sales that include both tax-exempt and nonexempt items. As a result, you must be careful about which items you charge sales tax on. Back up your records in your accounting books.<\/p>\n Do you need a simple way to record your business\u2019s transactions? Check out Patriot\u2019s accounting software<\/a> to manage and organize your books. Start your free trial today!<\/em><\/p>\nOverview of sales tax<\/h2>\n
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What is a sales tax holiday?<\/h2>\n
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<\/figure>\n<\/div>\nPreparing for a sales tax holiday<\/h2>\n
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2025 Sales tax holidays by state<\/h2>\n
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\n \nState<\/th>\n Name of Tax Holiday<\/th>\n Dates (2025)<\/th>\n Examples of Items Included<\/th>\n<\/tr>\n<\/thead>\n \n Alabama<\/td>\n Severe Weather Preparedness Sales Tax Holiday<\/a><\/td>\n \n Portable generators and severe weather preparedness items.<\/td>\n<\/tr>\n \n Alabama<\/td>\n Back-to-School Sales Tax Holiday<\/a><\/td>\n \n School supplies, clothing, computers, and books.<\/td>\n<\/tr>\n \n Arkansas<\/td>\n Arkansas Sales Tax Holiday<\/a><\/td>\n August 3 \u2013 4<\/td>\n School supplies, clothing, and instructional materials.<\/td>\n<\/tr>\n \n Connecticut<\/td>\n Sales Tax-Free Week<\/a><\/td>\n TBD<\/td>\n Clothing and footwear.<\/td>\n<\/tr>\n \n Florida<\/td>\n Disaster Preparedness Sales Tax Holiday<\/a><\/td>\n \n Portable generators, smoke detectors, pet beds, radios, and cat litter. <\/td>\n<\/tr>\n \n Florida<\/td>\n Freedom Week Sales Tax Holiday<\/a><\/td>\n TBD<\/td>\n Camping supplies, fishing supplies, insect repellent, and sunblock. <\/td>\n<\/tr>\n \n Florida<\/td>\n Back-to-School Sales Tax Holiday<\/a><\/td>\n TBD<\/td>\n Learning aids, clothing, school supplies, and computers. <\/td>\n<\/tr>\n \n Florida<\/td>\n Tools and Equipment Sales Tax Holiday<\/td>\n TBD<\/td>\n Tools and other home improvement items<\/td>\n<\/tr>\n \n Iowa<\/td>\n Iowa\u2019s Annual Sales Tax Holiday<\/a><\/td>\n August 1 \u2013 2<\/td>\n Clothing and footwear<\/td>\n<\/tr>\n \n Maryland<\/td>\n Shop Maryland Energy Tax-Free Weekend<\/a><\/td>\n February 15 \u2013 17<\/td>\n Energy Star products<\/td>\n<\/tr>\n \n Maryland<\/td>\n Shop Maryland Tax-Free Week<\/a><\/td>\n TBD<\/td>\n Clothing, footwear, and backpacks<\/td>\n<\/tr>\n \n Massachusetts<\/td>\n Massachusetts Sales Tax Holiday<\/a><\/td>\n TBD<\/td>\n Clothing and other retail items<\/td>\n<\/tr>\n \n Mississippi<\/td>\n Sales Tax Holiday<\/a><\/td>\n TBD<\/td>\n Clothing and footwear<\/td>\n<\/tr>\n \n Mississippi<\/td>\n Second Amendment Sales Tax Holiday<\/a><\/td>\n TBD<\/td>\n Ammunition, firearms, and hunting supplies<\/td>\n<\/tr>\n \n Missouri<\/td>\n Show Me Green Sales Tax Holiday<\/a><\/td>\n April 19 \u2013 25<\/td>\n Energy Star products<\/td>\n<\/tr>\n \n Missouri<\/td>\n Back-to-School Sales Tax Holiday<\/a><\/td>\n August 1 \u2013 3<\/td>\n Clothing, school supplies, and computers<\/td>\n<\/tr>\n \n New Mexico<\/td>\n Back-to-School Tax-Free Holiday<\/a><\/td>\n August 1 \u2013 3<\/td>\n Clothing, shoes, laptops, and school supplies<\/td>\n<\/tr>\n \n Ohio<\/td>\n Sales and Use Tax Holiday<\/a><\/td>\n TBD<\/td>\n Clothing, school supplies, and school instructional materials<\/td>\n<\/tr>\n \n Oklahoma<\/td>\n Oklahoma Sales Tax Holiday<\/a><\/td>\n August 1 \u2013 3<\/td>\n Clothing and footwear<\/td>\n<\/tr>\n \n South Carolina<\/td>\n Sales & Use Tax Holiday<\/a><\/td>\n August 1 \u2013 3<\/td>\n Clothing and accessories, computers, software, and certain bed and bath supplies<\/td>\n<\/tr>\n \n Tennessee<\/td>\n Traditional Sales Tax Holiday<\/a><\/td>\n July 25 \u2013 July 27<\/td>\n Clothing, school supplies, and computers<\/td>\n<\/tr>\n \n Texas<\/td>\n Emergency Preparation Supplies Sales Tax Holiday<\/a><\/td>\n April 26 \u2013 28<\/td>\n Portable generators, emergency ladders, axes, batteries, and can openers<\/td>\n<\/tr>\n \n Texas<\/td>\n Energy Star Sales Tax Holiday<\/a><\/td>\n May 24 \u2013 26<\/td>\n Energy Star air conditioners, refrigerators, and other products<\/td>\n<\/tr>\n \n Texas<\/td>\n Sales Tax Holiday<\/a><\/td>\n August 8 \u2013 10<\/td>\n Clothing and footwear, school supplies, and backpacks<\/td>\n<\/tr>\n \n West Virginia<\/td>\n Sales Tax Holiday<\/a><\/td>\n August 1 \u2013 4<\/td>\n Clothing, school supplies, and laptops<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n Making the sales tax-free days work for your business<\/h2>\n
1. Market your business<\/h3>\n
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2. Get employees on the same page<\/h3>\n
3. Update your POS systems<\/h3>\n
4. Keep clear and state-compliant records<\/h3>\n