The back-to-school shopping season is well underway, and shoppers can expect to save more during the state’s annual sales tax holiday.
Texas law exempts most clothing, footwear, school supplies, and backpacks individually priced under $100 from sales tax during the holiday period — meaning tax won’t be charged on those items.
See lists below of what’s taxable and what’s exempt.
According to the Texas Comptroller, qualifying items can be purchased from a Texas store or from an online or catalog seller doing business in Texas. In most cases, you do not need to give the seller an exemption certificate to buy qualifying items tax-free.
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, you buy a pair of jeans for $95 with a $10 delivery charge for a total price of $105. Because the jeans’ total price is more than $100, tax is due on the entire $105 price.
See a list of exempt and taxable items here.
As back-to-school season approaches, shoppers can save money for the school season with the tax-free holiday.
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