Who’s ready for some good old-fashioned back to school shopping? Here in Tennessee, the best weekend of the year to do it is Sales Tax Holiday, aka Tax Free Weekend. This year, the annual event begins on Friday, July 28th at 12:01am and ends Sunday, July 30th at 11:59pm.
This is a wonderful opportunity for you parents to stock up on clothes and school supplies for the year ahead. The state of Tennessee boasts a whopping 7% sales tax on most tangible personal property and taxable services. Taking advantage of this upcoming weekend will give you an easy way to save on items you would be purchasing in a few weeks anyways.
Anyone (not just students) can buy clothing this weekend for under $100, and it will be sales tax free. Any general apparel that can be purchased under the $100 threshold will qualify - shirts, pants, jackets, socks, shoes, dresses, etc.
Anyone (not just students) can buy school and art supplies for $100 or less per item that will qualify - binders, books, backpacks, crayons, pencils and pens, etc.
Plus, a big ticket item - computers. Anyone (not just students) can purchase a computer for $1,500 or less and qualify for the tax-exemption. This includes laptops and tablets, like an iPad.
What’s Still Taxable?
In the clothing category, anything that costs more than $100 is taxable. Also, items like jewelry, handbags, and sports equipment is still taxable.
For school and art supplies, only individual items that cost more than $100 are taxable.
When it comes to computers, anything over $1,500 does not qualify for the tax-exemption. Also, computer parts, keyboards and monitors (when not sold with the computer), flash drives, printers and supplies, cell phones, and more are not eligible.
Finally, any items purchased for business or trade use do not qualify for the tax-exemption. If you purchase an item for business use this weekend and do not pay sales tax, you will need to report this purchase and pay use tax.
Even though this coming weekend is a great opportunity to stock up on supplies for the year ahead, no need to go crazy. Be sure to make a list of exactly what you and your kids will need and stick to it. Real savings comes when you only buy what you need and nothing more. As soon as you start buying extra items because you have saved elsewhere, you are giving up the true advantage of the weekend, tax free purchases.