The Total Guide to Sales Tax Holidays 2026

The holiday season may be the "most wonderful time of the year" but, believe it or not, sales tax gives shoppers and retailers another great time to celebrate: sales tax holidays.

These holidays don't come with carols and decorations, but they can lead to major savings for customers and a sales boost for businesses. Here's everything you need to know about sales tax holidays—including what states participate, and what items are eligible for a sales tax-free weekend in 2026.

Sales Tax Holidays 101

Sales tax holidays are periods of time (typically weekends or weeks) when select items are exempt from state sales taxes. The state's goal is to entice shoppers and reduce cross-border shopping, especially in areas where consumers could easily cross state lines for a lower—or sometimes non-existent—sales tax. Sales tax holidays typically only include state sales tax, meaning other local taxes aren't necessarily removed.

Modern sales tax holidays have been around since New York started the trend in 1997. But not every state participates. Five states (Alaska, Delaware, Montana, New Hampshire, and Oregon) don't have state sales tax, so every day is a sales tax holiday for them. Of the remaining 45 states, 19 currently hold annual Sales tax holidays at varying levels. That number will likely continue to drop, with Virginia's holiday set to expire in July 2026.

Sales tax holidays usually apply to in-person and online sales during the included dates. With only a few exceptions, all retailers in the state must participate in the sales tax holiday, including both local businesses and national chains with locations in the state. In other words, if a business is registered to collect sales tax in a state, it must participate, both online and in person.

Most sales tax holidays run from 12:01 a.m. on the first day through midnight on the last day, so retailers need to be prepared for early bird shoppers to log on as soon as the promotion starts to take advantage of their online shopping.

Participating in a sales tax holiday is easy for customers because it doesn't require a coupon, special code, or membership. During the selected weekend, the sales tax is automatically removed from included purchases. A select few holidays only apply to certain shoppers who pay sales tax that is later refunded. Of course, a simple experience for shoppers often requires more work for retailers to program their point-of-sale machines correctly.

Most sales tax holidays center on certain types of items, such as the following:

• Back-to-school: Typically held in July and August, these holidays include clothing, school supplies and backpacks, computers, and other electronics.
• Energy-efficient appliances: Many states hold sales tax holidays specifically for Energy Star and WaterSense products and home appliances.
• Emergency preparedness items: These holidays include the purchase of preparedness items, including portable generators.
• Second Amendment: Some states offer sales tax exemptions on firearms, ammunition, and hunting supplies before the start of hunting season.

Some states hold multiple sales tax holidays throughout the year to include various types of products, but most only have one weekend of sales tax-free shopping on certain items. States must enact legislation about the sales tax holiday, including how frequently it will occur.

Why Do States Have Sales Tax Holidays?

Most shoppers view sales tax as a nuisance. In many areas, consumers will cross state lines to shop in areas with a local or no sales tax, meaning some retailers are missing out on potential customers and revenue. Sales tax holidays are designed to entice shoppers to stay local or even bring in shoppers from other areas. The goal is to boost sales for retailers and stimulate the local economy.

For shoppers, the deal is often a no-brainer and an automatic discount on their shopping. Considering most state sales taxes range between 5-7%, that can be a noticeable savings for customers.

However, there is some debate about the effectiveness and sustainability of sales tax holidays. Sure, the government misses out on revenue it could bring in from sales tax that weekend, but those tax breaks could lead to long-term revenue and growth as they stimulate spending and act as a jolt to the local economy. Plus, consumers tend to come for tax-free shopping but end up purchasing other items that aren't included in the holiday and paying sales tax on those items, which can also help tax revenue.

However, some people argue that the increased sales are a moot point as customers hold off on their shopping in the days and weeks leading up to the sales tax holiday to take advantage of the savings. If a customer plans to buy a big-ticket item like a generator or computer, they often wait until the tax-free weekend to spend the same money but save on taxes. Instead of spreading the spending out over a typical month, the spending was consolidated into a single weekend that only appeared to boost sales. But this isn't always the case: one study found that a sales tax holiday in Massachusetts increased spending over the entire month.

There's no definitive proof either way if sales tax holidays boost the economy, so many states continue to offer them annually. They figure that if shoppers are going to spend money on big-ticket items or during busy seasons like back-to-school, losing on sales tax is a small risk to take to bring in more customers. For businesses, sales tax holidays are typically a win and can lead to bigger crowds and the chance to bring in new customers who will hopefully return to shop even after the tax promotion is over.

2026 Sales Tax Holiday Schedule

Dozens of states will hold sales tax holidays in 2026 on various items. Before shopping, be sure to check the details of what items are included, as most states limit sales tax exemptions on items priced over a certain amount.

Retailers should also be aware of local dates and inclusions so they can plan accordingly, including scheduling more staff if necessary to match the influx in foot traffic.

If you want to learn more about sales tax holidays and how to prepare your business with a smooth sales tax process year-round, contact The Sales Tax People to get started with a customized sales tax system for your business needs.

People Also Ask:

What is a sales tax holiday?

A sales tax holiday is a temporary period — typically a weekend, a week, or in some cases an entire month — during which a state waives sales tax on specific categories of items. These holidays are designed to give consumers financial relief and stimulate retail spending. They do not require coupons or special memberships; the exemption applies automatically at checkout on qualifying purchases.

Which states have sales tax holidays in 2026?

Around 20 states have confirmed at least one sales tax holiday for 2026. States with confirmed holidays include Alabama, Arkansas, Connecticut, Florida, Iowa, Louisiana, Maryland, Mississippi, Missouri, New Mexico, Ohio, Tennessee, Texas, Virginia, and others. Additional holidays may still be added as state legislative sessions continue throughout the year, and some previously planned holidays have been amended or repealed.

What items are tax free during a sales tax holiday?

Qualifying items vary by state and holiday type. The most common tax-free categories include clothing and footwear under $100 per item, school supplies, and personal computers under established price caps. Other states exempt emergency preparedness supplies like generators and batteries, Energy Star-rated appliances, and in some cases firearms and ammunition. Items above the price threshold or outside the qualifying categories remain taxable during the holiday.

Do online purchases qualify for sales tax holidays?

Yes, in most states. Sales tax holidays generally apply to both in-store and online purchases, provided the item qualifies and the transaction is completed — meaning paid for in full — during the holiday period. For e-commerce sellers, the exemption is based on the date the customer places and pays for the order, even if it ships after the holiday ends. Online sellers shipping into a participating state are expected to honor the exemption on qualifying items.

Do all retailers have to participate in sales tax holidays?

In most states, yes. Retailers registered to collect sales tax in a participating state — including both local businesses and national chains — are generally required to apply the exemption during the holiday period, both in-store and online. A small number of states, such as New Mexico, allow retailers to opt out, but this is the exception. Retailers who charge sales tax on qualifying items during a holiday period can face audits, penalties, and customer complaints.

Does a sales tax holiday eliminate local taxes too?

Not always. Most sales tax holidays apply to state sales tax only. Local taxes imposed by cities, counties, or special districts may still apply during the holiday period unless the local government has separately adopted an ordinance to participate. For example, Connecticut's annual tax-free week applies only to state sales tax since Connecticut has no local tax, while in other states the total rate consumers pay during a holiday may still include a local component.

What types of sales tax holidays are there in 2026?

Sales tax holidays in 2026 fall into several main categories. Back-to-school holidays are the most widespread, covering clothing, footwear, school supplies, and sometimes computers. Emergency preparedness holidays exempt items like generators, batteries, and weather radios — common in hurricane-prone states like Alabama, Florida, and Texas. Energy Star holidays cover qualifying energy-efficient appliances. Some states also offer Second Amendment holidays exempting firearms and ammunition, and newer outdoor recreation holidays covering camping and fishing gear.

People Also Ask: