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

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Jul. 14 2021, Published 2:38 p.m. ET

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.

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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.

What's included in a tax-free weekend?

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.

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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.

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Get ready for tax -free days, Floridians

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).

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Tennessee's tax-free weekend is coming up

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.

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Other states with tax-free days in 2021

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.
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