As many students, parents, teachers, caregivers, and school staff prepare for the start of the new school year, there is one yearly tradition that is oftentimes overlooked: back to school shopping.
While shopping may be exciting for many, this can be worrisome for anyone who has financial constraints and may not be able to purchase what is needed for their child. In an effort to provide some financial relief, four States - Illinois, Missouri, Iowa, and Ohio - introduced legislation to create a tax holiday to ease the cost of school supplies, clothing, shoes, and more.
Here are some of the highlights and key points for items that are included as part of the tax holiday, per State:
Illinois – August 7 to 16
- State sales tax will temporarily drop from 6.25% to 1.25%.
- Clothing and Footwear: Items priced under $125 each, including sneakers, coats, and school uniforms.
- School Supplies: Items used directly in the classroom (notebooks, binders, book bags, calculators, etc.) with no price limit.
Ohio – August 7 to 9
- During this weekend, you can buy eligible clothing up to $75 per item, and school supplies or instructional materials up to $20 per item without paying state and local sales taxes.
- Clothing: Any clothing item priced at $75 or less, including footwear, uniforms, coats, and general apparel (but excluding accessories like jewelry).
- School Supplies: Items priced at $20 or less, including backpacks, notebooks, pens, pencils, calculators, and binders.
- Instructional Materials: Textbooks, workbooks, and reference books priced at $20 or less.
- Price Limits are Per Item: The price limit applies to each individual item, not your total cart. For example, if a pair of shoes costs $70, it is tax-free. If a backpack costs $25, it is taxable.
- Online purchases count as well, per item and not per total cart.
Iowa – August 7 and 8
- During these two days, you can purchase select clothing and footwear priced under $100 per item completely free of state and local sales taxes.
- Eligible Items: Clothes, school uniforms, coats, baby diapers, and shoes under $100.
- Excluded Items: Items priced at $100 or more are fully taxable. The tax exemption does not apply to back-to-school supplies (pencils, notebooks), backpacks, athletic equipment, or jewelry.
- Online Purchases: Orders placed online qualify as long as the item is purchased and paid for during the two-day window.
Missouri – August 7-9
- The tax exemption applies to specific items up to the following limits:
- Clothing: Any item with a taxable value of $100 or less.
- School Supplies: Purchases of $50 or less per purchase (e.g., paper, pens, textbooks, and backpacks).
- Personal Computers: Valued at $1,500 or less.
- Computer Software: Valued at $350 or less.
- Graphing Calculators: Priced at $150 or less.
Additional information regarding the Sales Tax Holidays, per State, are available on the Sales Tax Institute's website.
