2020 Sales Tax Holiday Calendar for your e-commerce store

Below TaxJar has outlined the 2020 sales tax holidays with guidelines for each state and what items are actually tax-free. One thing to note, not all states hold sales tax holidays. Some are annual and recur under legislation, while others that are non-annual require legislation each year.

List of All Sales Tax Holidays in 2020

Find your state and mark your calendars for tax free shopping (and selling)!

Alabama

February 21-22, 2020 – Alabama Severe Weather Preparedness Sales Tax Holiday

Note: Alabama local areas can opt-out of participating in the Severe Weather Preparedness Sales Tax Holiday. See an updated list of participating Alabama cities and counties here.

• Severe weather preparedness items costing $60 or less are not taxable during the sales tax holiday. Examples include batteries (including cell phones and chargers), duct tape, self-powered self-contained first-aid kit, non-electric can opener.
• Two exceptions are portable generators and power cords used to provide light or communications or preserve food in the event of a power outage – these items are tax exempt during the holiday as long as they cost $1,000 or less.

July 17-19, 2020 – Alabama Back to School Sales Tax Holiday. Here is a list of participating cities.

• Clothing with a sales price of $100 or less per item is not taxable during the sales tax holiday; the holiday excludes clothing items considered accessories or protective/recreational equipment such as swimwear.
• Single purchases of computers, computer software, and school computer equipment costing less than $750 are not taxable.
• Noncommercial purchases of school supplies, school art supplies and school instructional materials with a sales price of $50 or less per item are not taxable.
• Noncommercial book purchases with a sales price of $30 or less per book are not taxable.

Arkansas

August 1-2, 2020 – Arkansas Back to School Sales Tax Holiday

• Clothing and footwear under $100 per item is not taxable during the sales tax holiday.
• Clothing accessories or equipment, school art supplies, school instructional materials and school supplies under $50 per item are not taxable during the holiday.

Connecticut

August 16-22, 2020 – Connecticut Back to School Sales Tax Holiday

• Most clothing and footwear that costs less than $100 per item is not taxable during the holiday; however, the sales tax holiday excludes athletic or protective clothing, jewelry, handbags, luggage, umbrellas, wallets, watches and “similar items.”

Florida

The state of Florida is still considering the three sales tax holidays listed below for 2020 and needs to go through a bill approval process before making them official. We do not expect to get confirmation on these until May or June but will update this information as it becomes available.

Florida Hurricane Preparedness

• This 7-day holiday covers the purchase of items related to hurricane preparedness, including batteries, self-powered lights, self-powered radios, tarpaulins, ground anchoring systems, portable generators, fuel tanks, food storage coolers, and reusable ice.

Florida Back to School Sales Tax Holiday

• Clothing, school supplies, and computers with a sales price of $1,000 or less.

Hunting and Fishing Sales Tax Holiday

• Firearms (shotguns, spearguns, crossbows, and 21 bows), ammunition, camping tent, and fishing supplies.

Iowa

August 7-8, 2020 – Iowa Back to School Sales Tax Holiday

• Clothing and footwear with a sale price of less than $100 is not taxable during the holiday; However, the sales tax holiday excludes accessories, clothing rentals, athletic and protective clothing.

Louisiana

The state of Louisiana has suspended its three sales tax holidays (Back to School, Disaster Preparedness, Second Amendment) until July 1, 2025.

Maryland

February 15-17, 2020 – Maryland Green Sales Tax Holiday

• Energy Star™ products ((includes air conditioners, washers and dryers, furnaces, heat pumps, standard-size refrigerators, compact fluorescent light bulbs (CFL), light-emitting diode (LED) light bulbs, dehumidifiers and programmable thermostats) and solar water heaters) and solar water heaters are not taxable.

August 09-15, 2020 – Maryland Back to School Sales Tax Holiday

• Clothing and footwear less with a sale price of $100 or less are not taxable as well as the first $40 on backpacks/book bags. This excludes accessories.

Massachusetts

August 17-18, 2020 – Massachusetts Sales Tax Holiday*

• During this sales tax holiday, sales at retail stores of single items costing $2,500 or less are exempt from sales and use taxes.

Mississippi

July 31-August 1, 2020* (These dates are tentative) – Mississippi Back to School Sales Tax Holiday

• Clothing or footwear with a sales price of under $100 per item are not taxable; excludes accessories, rentals, skis, swim fins or skates.

September 4-6, 2020 (These dates are tentative) – Mississippi Firearms and Ammunition Sales (2nd Amendment) Tax Holiday

• Firearms, ammunition and hunting supplies, including archery equipment, are non-taxable.

Missouri

April 19-25, 2020 – Missouri Energy Efficiency Sales Tax Holiday

• Retail sales of Energy Star certified new appliances up to $1,500 per appliance are not taxable.

August 7-9, 2020 – Missouri Back to School Sales Tax Holiday

• Noncommercial purchases of clothing with a taxable value of $100 or less per item are not taxable; This excludes accessories.
• School supplies up to $50 per purchase are not taxable.
• Computer software with a taxable value of $350 or less is not taxable.
• Personal computers and computer peripherals up to $1500 are not taxable.
• Graphing calculators with a taxable value of $150 or less are not taxable.

Localities may opt-out of the Missouri Back to School Sales Tax Holiday. If less than 2% of a Missouri retailer’s merchandise qualifies for the sales tax holiday, then the retailer must offer a tax refund in lieu of a tax holiday.

New Mexico

August 8-9, 2020 – New Mexico Back to School Sales Tax Holiday

• Footwear and clothing with a sales price of less than $100 per item; Excludes accessories and athletic or protective clothing.
• School supplies with a sales price of less than $30 per item are not taxable.
• Computers with a sales price of $1,000 or less per item are not taxable.
• Computer peripherals with a sales price of $500 or less per item are not taxable.
• Book bags, backpacks, maps and globes with a sales price of less than $100 per item are not taxable.
• Handheld calculators with a sales price of less than $200 per item are not taxable.
• Retailers are not required to participate in New Mexico sales tax holidays.

Ohio

August 7-9, 2020 – Ohio Back to School Sales Tax Holiday

• Articles of clothing priced at $75 or less, school supplies and school instructional materials priced at $20 or less are tax free during the holiday.

Oklahoma

August 7-9, 2020 – Oklahoma Back to School Sales Tax Holiday

• Articles of clothing “designed to be worn on or about the human body” with a sales price of less than $100 are tax-exempt; Excludes accessories, rentals, athletic clothing, and protective clothing.

South Carolina

August 7-9, 2020 – South Carolina Back to School Sales Tax Holiday

• Clothing and clothing accessories and footwear are not taxable; Excludes rentals.
• School supplies are not taxable.
• Computers, printers, printer supplies, and computer software are not taxable (excluding commercial purposes).
• Bath washcloths, bed linens, pillows, bath towels, shower curtains and bath rugs are not taxable.

Tennessee

July 31-August 2, 2020 – Tennessee Back to School Sales Tax Holiday

• Clothing with a sales price of less than $100 is not taxable; Excludes accessories.
• School supplies and school art supplies with a sales price of $100 or less per item are not taxable.
• Computers with a sales price of $1,500 or less per item are not taxable.

Texas

April 25-27, 2020 – Texas Emergency Preparedness Sales Tax Holiday

• Portable generators used to provide light or communications or to preserve perishable food in the event of a power outage, up to $3,000 per item are not taxable.
• Storm protection devices specifically rated and marked to protect windows with a sales price of less than $300 are not taxable.
• Emergency or rescue ladders with a sales price of $300 or less are not taxable.
• Reusable or artificial ice, portable, self-powered light sources, gasoline or diesel fuel containers, batteries (excluding automobile or boat batteries), non-electric coolers or ice chests for food storage, tarpaulins or other flexible waterproof sheeting, a ground anchor system or tie-down kit, mobile telephone batteries or battery chargers, portable self-powered radios (including two-way radios or weatherband radios), non-electric can openers with a sales price of $75 or less are not taxable.
• Fire extinguishers, smoke detectors, carbon monoxide detectors with a sales price of $75 or less are not taxable
• Hatches or axes with a sales price of $75 or less are not taxable.
• Self-contained first aid kits with a sales price of $75 or less are not taxable.

May 23-25, 2020 – Texas Energy Efficiency Sales Tax Holiday

• Energy Star air conditioners with a sales price up to $6,000 are not taxable.
• Energy Star refrigerators with a sales price of up to $2,000 are not taxable.
• Certain water-conserving products (for residential use) may be purchased tax-free.

August 7-9, 2020 – Texas Back to School Sales Tax Holiday

• Clothing and footwear with a sales price of less than $100 per item are not taxable; Excludes accessories, rentals, and athletic or protective clothing.
  School supplies and school backpacks with a sales price of less than $20 per item are not taxable.

Virginia

August 7-9, 2020 – Virginia Combined Back to School Sales Tax Holiday, Energy Efficiency Sales Tax Holiday & Emergency Preparedness Sales Tax Holiday

• Clothing and footwear with a sales price of $100 or less per item are not taxable.
• School supplies with a sales price of $20 or less per item are not taxable.
• Portable generators $1,000 or less per item are not taxable.
• Gas powered chainsaws $350 or less per item are not taxable.
• Chainsaw accessories $60 or less per item are not taxable.
• Other specified hurricane preparedness supplies $60 or less per item are not taxable.
• Energy Star and WaterSense ™ for noncommercial home or personal use $2,500 or less per item are not taxable.

States with No Sales Tax Holidays in 2020

The following states are not, as of this writing, participating in sales tax holidays this year. Keep in mind that sales tax holiday participation is subject to change and we’ll update this list if a state announces a sales tax holiday for 2020.

Arizona, California, Colorado, District of Columbia (Washington D.C), Georgia, Hawaii, Idaho, Illinois, Indiana, Kansas, Kentucky, Maine, Michigan, Minnesota, Nebraska, Nevada, New Jersey, New York, North Carolina, North Dakota, Pennsylvania, Rhode Island, South Dakota, Utah, Vermont, Washington, West Virginia, and Wyoming.

What Should Online Sellers Do About Sales Tax Holidays?

In most cases, online sellers should try their best to honor sales tax holidays. Exceptions include when states allow retailers or certain localities to opt-out of sales tax holidays. In this case, it’s your decision whether or not you honor sales tax holidays. As a matter of sales strategy, it’s a good idea to participate. Customers will generally be on the lookout for tax-free deals over the holiday. But, as you’ll see, some online platforms make it difficult to stop collecting sales tax on certain items over certain time periods.

Amazon Sales Tax Collection and Sales Tax Holidays

Amazon honors sales tax holidays on school supplies and will automatically turn off sales tax collection on certain items during sales tax holidays. This is provided that you’ve correctly set your item’s product tax codes.

For example, products with the product tax code “A_SCHL_SUPPLS” won’t be taxed during sales tax holidays in states with a “Back to School Sales Tax Holiday.”
This is one of many reasons why it’s so important to ensure that your Product Tax Codes are set up correctly on Amazon. You can read a guide to Amazon Product Tax Codes here.

Sales Tax Holidays and Your eCommerce Store

Run your own shopping cart or marketplace? The TaxJar SmartCalcs Sales Tax API honors sales tax holidays. Just set your product codes and we’ll make sure you’re not charging sales tax on non-taxable products during sales tax holidays in 2020. Take the TaxJar SmartCalcs Sales Tax API for a free test drive today!

TaxJar strives to keep this list of 2020 sales tax holidays up to date, but keep in mind that sometimes states approve sales tax holidays mid-year. Visit www.taxjar.com/how-it-works to see how TaxJar can simplify managing sales tax and take the burden of sales tax off your plate.

Check out SellerEngine’s blog for our series on How to start selling on Amazon and don’t miss our posts with guidelines during the pandemic.