News Summary

As back-to-school shopping heats up, many states are implementing sales tax holidays to help ease the financial burden. However, Georgia has not offered a sales tax-free weekend since 2016, citing concerns over significant revenue losses. Meanwhile, states like South Carolina and Florida are providing tax-free shopping days for school supplies and clothing, emphasizing different priorities among states regarding tax exemptions. While sales tax holidays can yield savings, criticisms and discussions about their effectiveness and equity persist, particularly in Georgia where new tax proposals are emerging.

Atlanta – As summer winds down, shoppers are gearing up for back-to-school sales, with many states launching sales tax holidays to ease the financial burden of school shopping. However, Georgia is taking a different path; the state government has not offered a sales tax-free weekend since 2016 due to concerns over a significant revenue loss estimated between $36 and $50 million.

Sales tax holidays provide an opportunity for families to save money on essential back-to-school items. South Carolina’s sales tax holiday is set for August 1-3, covering eligible clothing, accessories, footwear, school supplies, computers, and software. In Florida, shoppers can benefit from a month-long sales tax holiday from August 1-31, where learning aids priced up to $30, school supplies costing up to $50, clothing items under $100, and computers up to $1,500 will be tax-free. Tennessee will hold its sales tax holiday from July 25-27, also covering clothing, school supplies, and computers.

On the other hand, Alabama has chosen to hold its sales tax holiday in February, focusing on weather supplies, demonstrating how each state prioritizes its sales tax holidays based on various needs. North Carolina, however, does not currently participate in any sales tax holiday program as confirmed by the Federation of Tax Administrators.

The average household is expected to spend around $890 on back-to-school supplies in 2025, illustrating the significant financial impact of these purchases. Sales tax holidays can provide substantial savings for smart shoppers who are aware of the limitations and specific eligible items within their state. Typically, states enforce restrictions on items that qualify for tax exemption, as well as price caps for those items.

Despite their appeal, sales tax holidays face criticism from some quarters. Detractors argue that these events do not adequately stimulate overall sales but instead merely shift the timing of purchases. Several states, including Georgia, New Jersey, and Illinois, have discontinued their sales tax holidays, citing the financial burden on state budgets.

Research indicates that higher-income households are more likely to take advantage of tax-free weekends compared to their lower-income counterparts, raising concerns about the equity of such initiatives. The focus on specific tax-free periods is often aligned with back-to-school shopping or the need for seasonal items, including emergency supplies.

Additionally, Georgia is currently engaged in legislative discussions proposing an 11-day sales tax holiday for firearm-related purchases. This proposal has sparked a controversial debate around the state’s approach to gun laws and taxation, showcasing the varied applications of tax holiday policies beyond educational supplies.

While sales tax holidays can be beneficial for consumers aiming to reduce costs, it is advisable for shoppers to remain vigilant for additional discounts and promotions that may enhance their savings. Keeping track of local laws and understanding the nuances of tax-free holidays will allow families to maximize their back-to-school shopping experience effectively.