Overview
- Multiple states launched back‑to‑school sales tax holidays this weekend, with Texas, Missouri and Virginia holding three‑day events and Illinois running a 10‑day reduction that began Friday, Aug. 7.
- Eligibility and price caps vary by state: Texas exempts items priced under $100 per item, Illinois has a $125 cap for clothing and cuts the state rate from 6.25% to 1.25%, and Missouri allows certain computers up to $1,500.
- Online orders must be paid during the exemption window and sellers may count shipping, handling and delivery toward an item’s taxable price, which can push purchases over state caps and make them ineligible.
- Rising supply costs, roughly 7–8% year‑over‑year, have pushed many shoppers to buy early or turn to thrift stores, and surveys show a large share of families complete purchases before the holiday weekend.
- Houston lawmakers have said they will propose expanding duration and covered items next year, but tax analysts warn the brief, targeted holidays can shift retailer pricing, burden small sellers and may not produce broad or equitable relief; about 17 states offered similar breaks this year.