Jan 3, 2025 • 2 minute read

Sales Tax Holidays 2025

A sales tax holiday is a limited time when states waive or reduce sales tax on certain items, helping consumers save. These holidays can be annual or require yearly legislation, depending on the state. Check out our guide to ensure your business is ready for the next tax-free period!

Written by Nuno Brito Reviewed by Alex Lamachenka

Sales Tax Holidays 2025: A Brief Explanation

Sales tax holidays 2025 provide financial relief to shoppers and encourage consumer spending by not incurring sales tax during that specific period on particular items. So, your business must prepare for these holidays by understanding state regulations regarding tax-free shopping 2025.

What Are Sales Tax Holidays?

State sales tax holidays are specific periods in which consumers can purchase items without the need to pay sales tax on them. So, families can save money on these items and prepare for bad weather. They can buy clothing, school supplies, energy-efficient appliances, and much more.

Some key sales tax holidays include the following four:

1. Back-to-School Sales Tax Holidays

Consumers can buy items like clothing, school supplies, footwear, computers, book bags, handheld calculators, etc. Participating states include Connecticut, Florida, Missouri, Tennessee, West Virginia, etc.

2. Energy-Efficient Appliance Holidays

These holidays cover ENERGY STAR-rated products (like freezers and refrigerators). States like Florida, Maryland, Missouri, Texas, Virginia, etc. participate in this event.

3. Disaster Preparedness Holidays

These holidays cover items like batteries, first-aid kits, generators, smoke detectors, nonelectric food storage coolers, fire extinguishers, etc. (Florida participates in it).

4. General Tax-Free Periods

Many states also offer broader tax-free periods. In Texas and Massachusetts, several items under $100 and $2.5k, respectively, fall under this exemption.

Items Typically Included in State Sales Tax Holidays

You can purchase these items during tax-free shopping seasons: clothing and footwear, school supplies, computers and related accessories, energy-efficient appliances, and emergency preparedness supplies.

Historically, several states do not offer sales tax holidays, such as Arizona, California, Colorado, Delaware, Hawaii, Illinois, Kansas, Kentucky, Maine, Minnesota, Nebraska, New Jersey, New York, North Dakota, Pennsylvania, Utah, Washington, Wyoming, etc. However, many states, like Alaska, have withdrawn out-of-state sales tax transaction thresholds for the year 2025. So, your business must prepare for tax holidays.

How Businesses Can Prepare for Sales Tax Holidays?

You also have to track multiple state-specific holidays. Use automation to make things easier for you during sales tax compliance holidays. TaxCloud ensures accuracy in all 13,000+ US jurisdictions, no matter where or what you sell. It adjusts sales tax calculations in real time and makes compliance hassle-free.

Final Thoughts

Are you prepared for sales tax holidays in 2025? Get started with a free 30-day trial of TaxCloud today and ensure hassle-free compliance during sales tax holidays in 2025. Use this sales tax exemption and annual sales tax holiday to your favor!