How to Benefit from Texas Tax-Free Weekend?

This year’s sales tax holiday will run from August 19-21. A lot of families look forward to this weekend, but I sometimes wonder if people aren’t losing money.

On Texas tax-free weekend, you don’t have to pay sales tax on certain items that cost less than $100. Qualifying items include most school supplies, back packs and back-to-school clothing. You’ll save $8 for every $100 you spend on these things. But even if you spend $1,000 this weekend, the most you’ll save is $80. That’s not a lot of savings for the money you’re spending, and if you wait until tax-free weekend to shop, the items you really need may be out of stock.

The key to saving money on Texas tax-free weekend is to combine your tax savings with big sales on the items you need and to shop early – like now. Obviously you can’t pay for items until tax-free weekend, but if you or your family members try on the clothes and shoes you want to buy, you’ll know exactly where to go and what to pick off the racks on that Friday morning.

An even better option is to shop at stores that offer layaway. Shop now while items are still in stock, put them in lay-away and pay for them on tax-free weekend. Lay-away policies differ from store to store, so check with each store before you start shopping to be sure you can lay-away your items now and pay for them tax free that weekend.

Items You’ll Still Pay Tax On

Tax-free weekend is not a free-for-all. The state only gives you a tax break on specific items related to back-to-school shopping, and even some of those don’t qualify. For example, only certain backpacks are exempt from taxes. They have to cost less than $100 and they have to be something a kid can use at school. Backpacks with wheels only qualify if they have straps so kids can also wear them on their backs. The state also gives exemptions on messenger bags. You’ll still pay tax on backpacks that are more like luggage, briefcases, athletic bags, computer bags, purses or framed backpacks. The same goes for clothing. If you buy cowboy boots or hiking boots, you won’t pay tax. If you buy boots for any other purpose, you’ll pay tax.

Remember, the sales tax exemption is only for items that cost under $100. You can buy hundreds of items if you need to, but you’ll pay tax on any single item that costs $100 or more.

Go the state comptroller’s website for a complete list of items that do and do not count toward the sales tax break.