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Sales Tax Holidays Equal Back-To-School Bargains

August back-to-school deals abound as a variety of states offer August sales tax holidays on everything from clothing to backpacks.

While sales tax holidays occur throughout the year in many states, August seems to be the prime choice for them. This makes it a perfect opportunity to save anywhere from 4-7%, depending on your state.

Restrictions, of course, do apply. Only some states are offering the sales tax holiday, and only on certain days/weekends. Different states have limits on what items you can buy tax-free, and there are limits on how much of an item you can buy.

For example, Maryland’s tax-free holiday (Aug. 12-18) applies only to clothing and footwear, and there’s a $100 limit on how much you can buy tax-free. North Carolina’s tax-free holiday (Aug. 3-5) is a bit more robust, offering tax-free shopping on a variety of items, from clothing ($100 limit) to computers ($3500 limit)

The concept of the sales tax holiday was started in New York in 1997 in an attempt to keep residents from crossing state lines to shop for tax-free clothing. It has since been adopted by 17 states looking to offer its residents deals on everything from hurricane-preparedness items to firearms.

Does your state offer a tax-free holiday? You can find a complete list of states that do (including the dates, items that apply and $ limits) at the Federation of Tax Administrors website.


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