Tax Free Days Are Back in 2021—Get Ready to Shop

Industry analysts expect retail sales across the board to increase as much as 13.5 percent in 2021 as the economy rebounds from the COVID-19 pandemic. With that growth comes enthusiasm about shopping, including tax-free days across the U.S.

When are the tax-free shopping opportunities in the U.S. in 2021? What's included in the tax-free holidays? With some planning, you can definitely save money.

Different states with sales tax will have tax holidays that extend throughout a weekend or, in some cases, as long as a week. This is supposed to encourage shoppers to hit the stores and make those purchases that they have been putting off.

Right now, 16 states offer a sales holiday of some kind. Each one has different rules about what purchases are eligible, but most of them include:

• Clothing

• Accessories

• Computers

• School supplies

There are often limits on the purchase price to help incentivize people who are shopping on a budget.

The 2021 tax-free days for Fordia will take place on July 31–Aug. 9.

Eligible items include clothing, footwear, and some accessories (less than $60 per item). You can also avoid taxes on school supplies (less than $15 per item) and computers ($1,000 or less per item).

The 2021 tax-free days for Tennessee will take place on July 30–Aug. 1.

Eligible items include clothing (less than $100 per item), school supplies (less than $100 per item), and computers ($1,500 or less per item). The state has also extended the sales tax holiday to include food and restaurants for a few days following the tax-free weekend.

Here's a list of the other 14 states offering tax-free weekends in 2021:

• Alabama: July 16–18 for clothes under $100, school supplies under $50, books under $30, and computers under $750
• Arkansas: Aug. 7–8 for clothes and shoes under $100, accessories under $50, and certain school supplies 
• Connecticut: Aug. 15–21 for clothes and shoes under $100 (excluding sports uniforms and gear) 
• Iowa: Aug. 6–7 for clothes and shoes under $100 (excluding backpacks, other bags, and sports uniforms)
• Maryland: Aug. 8–14 for clothes and shoes under $100 plus taxes on the first $40 of a backpack 
• Massachusetts: Aug. 14–15 for all retail goods at or below $2,500 (there are numerous exceptions like meals, gas, tobacco, marijuana, cars, and boats) 
• Mississippi: July 30–31 for clothes and shoes under $100 (excluding backpacks) 

• Missouri: Aug. 6–8 for clothes or shoes of $100 or less, school supplies of $50 or less, graphing calculators of $150 or less, software of $350 or less, and computers under $1,500 
• New Mexico: Aug. 6–8 for clothes or shoes of $100 or less, computers under $1,000, hardware under $500, and school supplies of $30 or less (retailers aren't required by state law to participate, so confirm with a shop before finalizing the sale)
• Ohio: Aug. 6–8 for clothing of $75 or less and school supplies of $20 or less
• Oklahoma: Aug. 6–8 for clothes and shoes under $100 (excluding athletic gear)
• South Carolina: Aug. 6–8 for clothes under $100, school supplies of $100 or less, and computers not exceeding $1,500
• Texas: Aug. 6–8  for clothes, shoes, school supplies, and more under $100
• Virginia: Aug. 6–8 for school supplies not exceeding $20 and approved clothes and shoes of $100 or less.