In 2014, Texas shoppers get a break from state and local sales taxes on Aug. 8 - 10 — the state’s annual tax holiday. As in previous years, the law exempts most clothing, footwear, school supplies and backpacks priced under $100 from sales and use taxes, which could save shoppers about $8 on every $100 they spend.

The dates for the sales tax holiday are set by the Legislature.

Subject to the criteria explained below, all sales of qualifying items made during the holiday period qualify for the exemption, including items sold online, or by telephone or mail. Lay-away plans can be used again this year to take advantage of the sales tax holiday.

Qualifying School Supplies Other Qualifying Items Sales Tax Holiday FAQ The Fine Print

More information about the Sale Tax Holiday/Tax-Free Weekend is available on the full site.

Other Qualifying Items

The exempt items on this list must be priced under $100. The exemption does not extend to rental, alterations or cleaning services on these exempt items of clothing and footwear.

T = Taxable
E = Exempt

A

B

  • Baby bibs (E)
  • Baby clothes (E)
  • Baby diapers
    (cloth or disposable) (E)
  • Backpacks
    (unless for use by elementary/secondary students) (T)
  • Baseball caps (E)
  • Baseball cleats (T)
  • Baseball gloves (T)
  • Baseball jerseys (E)
  • Baseball pants (T)
  • Bathing caps (T)
  • Belt buckles (T)
  • Belts with attached buckles (E)
  • Belts for weight lifting (T)
  • Bicycle shoes (cleated) (T)
  • Blouses (E)
  • Boots (general purpose) (E)
  • Bow ties (E)
  • Bowling shirts (E)
  • Bowling shoes (rented and sold) (T)
  • Bras (E)
  • Buttons and zippers (T)

C

  • Camp clothes (E)
  • Caps (baseball, fishing, golf) (E)
  • Chef uniforms (E)
  • Children’s novelty costumes (E)
  • Chest protectors (T)
  • Clerical vestments (E)
  • Cloth and lace, knitting yarns, and other fabrics (T)
  • Clothing repair items, such as thread, buttons, tapes, and iron-on patches (T)
  • Coats and wraps (E)
  • Corsages and boutonnieres (T)
  • Coveralls (E)

D

  • Diapers (cloth and disposable) (E)
  • Dresses (E)
  • Dry cleaning services (T)

E

  • Elbow pads (T)
  • Embroider (T)
  • Employee uniforms (unless rented) (E)

F

  • Fabrics, thread, buttons, lace, patterns, knitting yarns (T)
  • Fins (swim) (T)
  • Fishing boots (waders) (T)
  • Fishing caps (E)
  • Fishing vests (non-flotation) (E)
  • Football jerseys (E)
  • Football pads (T)
  • Football pants (T)

G

  • Gloves (generally) (E)
  • Goggles (T)
  • Golf caps (E)
  • Golf dresses (E)
  • Golf gloves (T)
  • Golf jackets and windbreakers (E)
  • Golf shirts (E)
  • Golf skirts (E)
  • Golf purses (T)
  • Golf shoes (T)
  • Graduation caps and gowns (E)
  • Gym suits and uniforms (E)

H

  • Hair nets, bows, clips, and barrettes (T)
  • Handbags and purses (T)
  • Handkerchiefs (T)
  • Hard hats (T)
  • Hats (E)
  • Headbands (T)
  • Helmets (bike, baseball, football, hockey, motorcycle, sports) (T)
  • Hockey gloves (T)
  • Hooded shirts and hooded sweatshirts (E)
  • Hosiery, including support hosiery (E)
  • Hunting vests (E)

I-J

  • Ice skates (T)
  • Insoles (T)
  • Jackets (E)
  • Jeans (E)
  • Jewelry (T)
  • Jogging apparel (E)

K

  • Knee pads (T)
  • Knitted caps or hats (E)

L

  • Laundering services (T)
  • Leg warmers (E)
  • Leotards and tights (E)
  • Life jackets and vests (T)
  • Luggage (T)

M

  • Mask, costume (E)
  • Mask, protective - welder, umpire, swim (T)
  • Monogramming (T)

N

  • Neckwear and ties (E)
  • Nightgowns and nightshirts (E)

O-P

  • Overshoes and rubber shoes (T)
  • Pads (football, hockey, soccer, elbow, knee, shoulder) (T)
  • Paint or dust respirators and incidental supplies (T)
  • Painter pants (E)
  • Pajamas (E)
  • Pants (E)
  • Panty hose (E)
  • Patterns (T)
  • Personal flotation devices (T)
  • Pocket squares (T)
  • Protective gloves (T)
  • Protective masks (T)

R

  • Raincoats and ponchos (E)
  • Rain hats (E)
  • Religious clothing (E)
  • Rented clothing (including uniforms, formal wear, and costumes) (T)
  • Repair of clothing or footwear (T)
  • Ribbons (T)
  • Robes (E)
  • Roller blades (T)
  • Roller skates (T)

S

  • Safety clothing (normally worn in hazardous occupations) (T)
  • Safety glasses (except prescription) (T)
  • Safety shoes (adaptable for street wear) (E)
  • Safety shoes (not adaptable for street wear) (T)
  • Scarves (E)
  • Scout uniforms (E)
  • Sewing patterns (T)
  • Shawls and wraps (E)
  • Shin guards and padding (T)
  • Shirts (E)
  • Shirts (hooded) (E)
  • Shoe inserts (T)
  • Shoelaces (T)
  • Shoes (generally) (E)
  • Shoe shines (T)
  • Shoe repairs (T)
  • Shoulder pads (for dresses, jackets, etc.) (T)
  • Shoulder pads (football, hockey, sports) (T)
  • Shorts (E)
  • Shower caps (T)
  • Skates (ice and roller) (T)
  • Ski boots (snow) (T)
  • Ski suits (snow) (T)
  • Ski vests (water) (T)
  • Skirts (E)
  • Sleepwear, nightgowns, pajamas (E)
  • Slippers (E)
  • Slips (E)
  • Soccer socks (E)
  • Socks (E)
  • Sports helmets (T)
  • Sports pads (football, hockey, soccer, knee, elbow, shoulder) (T)
  • Suits, slacks, and jackets (E)
  • Sunglasses (except prescription) (T)
  • Support hosiery (E)
  • Suspenders (E)
  • Sweatbands (arm, wrist, head) (T)
  • Sweatshirts (E)
  • Sweat suits (E)
  • Sweaters (E)
  • Swimming masks and goggles (T)
  • Swimsuits (E)

T

  • Tennis dresses (E)
  • Tennis shorts (E)
  • Tennis shoes (E)
  • Tennis skirts (E)
  • Ties (neckties - all) (E)
  • Tights (E)
  • Track shoes and cleats (T)
  • Trousers (E)

U

  • Umbrellas (T)
  • Underclothes (E)
  • Underpants (E)
  • Undershirts (E)
  • Uniforms (school, work, nurse, waitress, military, postal, police, fire) (E)

V-W

  • Veils (E)
  • Vests (generally) (E)
  • Wallets (T)
  • Watch bands (T)
  • Watches (T)
  • Water ski vests (T)
  • Weight lifting belts (T)
  • Wet and dry suits (T)
  • Work clothes (E)
  • Work uniforms (E)
  • Workout clothes (E)
  • Wrist bands (T)

Sales Tax Holiday FAQ

Your sales tax holiday publication states “Texas shoppers get a break from state and local sales and use taxes…” Could you clarify who qualifies as a “Texas shopper?” For example, do shoppers from other states or countries qualify for the exemption?

Your sales tax holiday publication states “Texas shoppers get a break from state and local sales and use taxes…” Could you clarify who qualifies as a “Texas shopper?” For example, do shoppers from other states or countries qualify for the exemption?

“Texas shoppers” refers to anyone in Texas buying qualifying products during the sales tax holiday weekend at a store in Texas or from an Internet or catalog seller engaged in business in this state.

Do purchasers need to provide an exemption certificate or any other documentation to claim this exemption?

Do purchasers need to provide an exemption certificate or any other documentation to claim this exemption?

In most cases, purchasers do not need to issue an exemption certificate or any other type of documentation to sellers to buy qualifying item tax free during the sales tax holiday weekend.

There are exceptions, however, for some purchases of backpacks and school supplies:

  1. A purchaser buying more than 10 backpacks must provide an exemption certificate certifying that the backpacks are purchased for use by elementary or secondary school students.
  2. A purchaser buying school supplies under a business account must provide an exemption certificate certifying that the items are purchased for use by an elementary or secondary school student. “Under a business account” means the purchaser is using a business credit card or business check rather than a personal credit card or personal check; is being billed under a business account maintained at the retailer; or is using a business membership at a retailer that is membership based.

Do all sellers located in Texas have to participate in this event?

Do all sellers located in Texas have to participate in this event?

All sellers engaged in business in Texas that sell qualifying products should comply with the law (Tax Code Sections 151.326 and 151.327) and participate in this event.

If a seller charges tax on the sale of a qualifying item during the sales tax holiday, the purchaser can ask the seller for a refund. Rather than refund the tax directly to the purchaser, the seller may elect to assign its rights to the refund to the purchaser so that the purchaser can request the refund directly from the Comptroller. To do that, the seller should provide the purchaser with a signed Assignment of Right to Refund (Form 00-985) (PDF, 20KB). The purchaser would then file that form along with the refund request and copies of invoices or receipts with the Comptroller's office.

Can I rent a tuxedo for my wedding tax-free during the holiday?

Can I rent a tuxedo for my wedding tax-free during the holiday?

No, rentals and leases of clothing and shoes do not qualify for the sales tax holiday. See Tax Code Section 151.326 (b) (3).

Rentals and leases of qualifying backpacks and school supply products (including “rent to own” contracts), however, qualify for exemption during the sales tax holiday. Under Tax Code Section 151.005, the definition of a “sale” includes the exchange, barter, lease or rental of tangible personal property. Therefore, rental and lease contracts for qualifying items entered into during the sales tax holiday weekend will qualify for the exemption. The exemption will only apply to the specified rental or lease period designated by the contract. Extensions or renewals of contracts will not qualify unless they occur during another applicable sales tax holiday.

Can a purchaser receive a refund of sales and use taxes paid on purchases of qualifying items that were made before the sales tax holiday?

Can a purchaser receive a refund of sales and use taxes paid on purchases of qualifying items that were made before the sales tax holiday?

No. The sales tax holiday exemption applies only to purchases of qualifying clothing, shoes, backpacks and school supplies made during the designated sales tax holiday period. Customers who purchase eligible items before or after the designated sales tax holiday period cannot receive a refund of the taxes unless another exemption applies.

Can pre-packaged combination sets or kits that contain items qualifying for exemption during the sales tax holiday and items that do not qualify for the exemption be sold tax-free during the holiday? For example, I sell pre-packaged school supply kits. The kits contain qualifying items such as pencils, paper, crayons and glue, but also contain items such as plastic baggies and tissues that do not qualify. Can I sell the pre-packaged kits tax-free during the sales tax holiday?

Can pre-packaged combination sets or kits that contain items qualifying for exemption during the sales tax holiday and items that do not qualify for the exemption be sold tax-free during the holiday? For example, I sell pre-packaged school supply kits. The kits contain qualifying items such as pencils, paper, crayons and glue, but also contain items such as plastic baggies and tissues that do not qualify. Can I sell the pre-packaged kits tax-free during the sales tax holiday?

The primary components of a pre-packaged kit determine its eligibility for the sales tax holiday exemption. If the primary components of a pre-packaged kit are qualifying items, then the entire pre-packaged kit can be sold tax-free during the sales tax holiday. A pre-packaged kit that is primarily made up of non-qualifying, taxable items does not qualify for the holiday exemption even if the kit includes some qualifying items.

Do special orders qualify for the sales tax holiday? My customers place an order and make a down payment or deposit when placing the order, but the merchandise may not be ready for pick up for several weeks. I have read that the sales tax holiday provides for layaway purchases, but does it also apply to the special or custom orders of eligible items placed during the holiday period?

Do special orders qualify for the sales tax holiday? My customers place an order and make a down payment or deposit when placing the order, but the merchandise may not be ready for pick up for several weeks. I have read that the sales tax holiday provides for layaway purchases, but does it also apply to the special or custom orders of eligible items placed during the holiday period?

The answer is “no” if the customer only makes a down payment or deposit during the sales tax holiday period. However, the exemption does apply if the order for the qualifying item is accepted by the seller and paid in full by the customer during the holiday period, even if delivery is made after the sales tax holiday period ends. A seller “accepts” an order when the seller has received payment in full and all information necessary to complete the sale and has taken action to fill the order for immediate shipment. Actions to fill an order include placement of an “in date” stamp on a mail order, or assignment of an “order number” to a telephone order. An order is for immediate shipment when the customer does not request delayed shipment. An order is for immediate shipment even if the shipment may be delayed because of a backlog of orders or because stock is currently unavailable to, or on back order by, the company.

I've noticed some school supplies that my children's school requires are not on the list of school supplies qualifying for the sales tax holiday. Why?

I've noticed some school supplies that my children's school requires are not on the list of school supplies qualifying for the sales tax holiday. Why?

House Bill 1801 (81st Legislature, 2009) limits the school supplies eligible for exemption during the sales tax holiday to only those items specifically listed and identified as “school supplies” as that term is defined in the Streamlined Sales and Use Tax Agreement.

The Streamlined Sales and Use Tax Agreement (SSUTA) was developed over several years through the joint effort of over 40 states and many small and large retailers and trade groups. The goal of Streamlined Sales Tax (SST) is to substantially reduce the burden of tax compliance for sellers by simplifying and modernizing sales and use tax laws across state lines in order to increase voluntary sales and use tax collections by sellers engaged in interstate commerce and to encourage Congress to pass a law that would allow states to require the collection of tax on those sales.

Do delivery or shipping and handling charges qualify for the exemption?

Do delivery or shipping and handling charges qualify for the exemption?

Transportation charges to deliver an item sold (i.e., delivery charges, shipping and handling, etc.) that are billed by the seller to the purchaser are part of the final selling price of the products sold during the holiday, even if separately stated on the bill or invoice. Transportation charges billed by the seller to the purchaser are exempt if the item sold is exempt. For example, delivery charges billed by the seller of a blouse to the purchaser during the sales tax holiday are exempt because the delivery charges are part of the final selling price of the exempt item.

How do you address transportation charges when shipping both taxable and exempted items in one shipment?

How do you address transportation charges when shipping both taxable and exempted items in one shipment?

Transportation charges must be properly collected when a package or delivery contains both exempt and taxable items. For example, assume a retailer sells shorts and shirts tax-free during the sales tax holiday. The same customer also purchases golf shoes, which do not qualify for the exemption. The retailer charges the customer a delivery fee of $5 per item. The $5 delivery fees for the qualifying shorts and shirts is exempt from sales tax, but the $5 delivery fee for the golf shoes is subject to tax because the shoes are taxable.

However, if the delivery charge is a flat rate per package or delivery address, and the amount charged is the same regardless of how many items are included in the package or delivery, for purposes of the exemption, the total charge may be attributed to one of the items in package rather than proportionately allocated between the items. For example, assume a seller charges a flat fee of $10 per customer address for delivery regardless of the number of items delivered to that address. Assume that during the sales tax holiday, a customer purchases a qualifying calculator tax-free, a taxable book and a taxable football and the seller charges the customer the flat fee of $10 for delivery of all three items. Under these facts, the seller may attribute the $10 charge for delivery to the sale of the calculator (a qualifying exempt item) and does not have to split the delivery charge between the calculator, book and football. Because the charge may be attributed to the calculator, the entire flat fee delivery charge qualifies for the exemption. The sales invoice must clearly identify that the delivery charges were attributed to the exempt item and separately state the tax due on the non-qualifying merchandise.

What happens if the total sales price of an item is $100 or more when the transportation charges are added?

What happens if the total sales price of an item is $100 or more when the transportation charges are added?

Delivery charges billed in connection with the sale of an item may disqualify some of those products from the exemption. During the sales tax holiday, only clothing, backpacks and school supplies with a total sales price less than $100 qualify for exemption from sales and use tax. The total sales price includes charges by the seller for delivery. The addition of delivery charges to the retail price of an item will cause the loss of the exemption if the total price exceeds $100. For example, the purchase of a dress priced at $89 plus a delivery charge of $10 will have a total sales price of $99 and will qualify for the exemption. But, a dress priced at $99 with a delivery charge of $10 would not qualify for the exemption because the total sales price would be $109 which exceeds the $100 cap.

Are textbooks exempt during the sales tax holiday? What about computers and software?

Are textbooks exempt during the sales tax holiday? What about computers and software?

Textbooks, computers and software are not exempt during the sales tax holiday. The legislation authorizing the sales tax holiday provides an exemption for only the specific items of clothing, footwear, backpacks and school supplies defined in Texas Tax Code Sections 151.326 and 151.327 and Comptroller Rule 3.365.

Accessories

Boots

Gloves

Shoes

Vests

Qualifying School Supplies

All-inclusive list of qualifying school supplies (if priced less than $100)


Paper

The "Fine Print"

Important information you should know about this tax-saving event

Clothing and Footwear

Retailers are not required to collect state and local sales or use tax on most footwear and clothing that are sold for less than $100 during the holiday. Exemption certificates are not required. The exemption applies to each eligible item that sells for less than $100, regardless of how many items are sold on the same invoice to a customer. For example, if a customer purchases two shirts for $80 each, then both items qualify for the exemption, even though the customer's total purchase price ($160) exceeds $99.99.

The exemption does not apply to the first $99.99 of an otherwise eligible item that sells for more than $99.99. For example, if a customer purchases a pair of pants that costs $110, then sales tax is due on the entire $110.

The exemption also does not apply to sales of special clothing or footwear that the manufacturer primarily designed for athletic activity or protective use and that is not normally worn except when used for the athletic activity or protective use for which the manufacturer designed the article. For example, golf cleats and football pads are primarily designed for athletic activity or protective use and are not normally worn except for those purposes; they do not qualify for the exemption. Tennis shoes, jogging suits and swimsuits, however, are commonly worn for purposes other than athletic activity and thus qualify for the exemption.

The sales tax holiday exemption does not extend to rental of clothing or footwear; nor does it apply to alteration (including embroidery) or cleaning services performed on clothes and shoes. Additionally, tax is due on sales of accessories, including jewelry, handbags, purses, briefcases, luggage, umbrellas, wallets, watches and similar items.

Backpacks

Backpacks priced under $100 sold for use by elementary and secondary students are exempt during the sales tax holiday. A backpack is a pack with straps one wears on the back. The exemption includes backpacks with wheels, provided they can also be worn on the back like a traditional backpack, and messenger bags.

The exemption does not include items that are reasonably defined as luggage, briefcases, athletic/duffle/gym bags, computer bags, purses or framed backpacks. Ten or fewer backpacks can be purchased tax-free at one time without providing an exemption certificate to the seller.

School Supplies

Texas families also get a sales tax break on most school supplies priced at less than $100 purchased for use by a student in an elementary or secondary school.

Purchases of School Supplies Using a Business Account

Persons buying qualifying school supplies during the holiday are not required to provide an exemption certificate – with one exception. If the purchaser is buying the items under a business account, the retailer must obtain an exemption certificate from the purchaser certifying that the items are purchased for use by an elementary or secondary school student. "Under a business account" means the purchaser is using a business credit card or business check rather than a personal credit card or personal check; being billed under a business account maintained at the retailer; or is using a business membership at a retailer that is membership based.

Layaways and Rainchecks

Layaways

A sale of a qualifying item under a layaway plan qualifies for exemption if the customer places the qualifying merchan dise on layaway during the holiday or makes the final payment during the holiday. See Rule 3.365(i).

Rainchecks

Eligible items that customers purchase during the holiday with use of a rain check qualify for the exemption regardless of when the rain check was issued. However, issuance of a rain check by a seller during the holiday period will not qualify an eligible item for the exemption if the item is actually purchased after the holiday is over even if the rain check is presented at the time of purchase. See Rule 3.365(j).

Prohibited Advertising

A word of caution: If you sell items that do not qualify for the exemption, you may not advertise or promise that you will pay your customers' sales tax. You are prohibited from advertising that you will not collect sales tax on items that do not qualify, but you may advertise that tax is included in the sales price of the taxable items that you sell. See Tax Code Section 151.704 for more information.

Reporting Requirements for Sellers

For information on how to report tax on these sales, please visit Reporting Sales Tax on Tax-Free Items.