Texas holds its main sales tax holiday in early August each year
Texas's annual sales tax holiday runs for one week in August, typically starting the first Friday and ending the following Sunday. The exact dates shift slightly year to year because they are tied to the first Friday in August. During this period, most clothing, footwear, school supplies, and backpacks are sold without the state sales tax (though local taxes may still apply). The holiday does not cover all purchases—groceries, vehicles, furniture, and electronics are not included.
The state legislature sets the dates each session, so the window is fixed but the specific calendar dates change. You can find the current year's dates on the Texas Comptroller of Public Accounts website or by calling your local tax assessor's office. Retailers are not required to participate, though most major chains do. Some stores advertise the holiday heavily; others do not, so you may need to ask at checkout whether an item qualifies.
Key Takeaways
- Texas's sales tax holiday occurs in early August for one week, starting the first Friday of the month.
- Clothing, shoes, school supplies, and backpacks under certain price thresholds are tax-free; groceries and electronics are not covered.
- The state Comptroller's office publishes the exact dates each year, and dates vary because they follow the first Friday in August.
- Local sales taxes still apply during the holiday in most Texas cities and counties, so the total tax savings depends on where you shop.
What items are actually tax-free during the holiday
The holiday covers clothing and footwear with no price limit, meaning a $500 coat qualifies just as much as a $20 shirt. School supplies—notebooks, pencils, folders, calculators, and similar items—are tax-free if each item costs less than $100. Backpacks and book bags are also covered if priced under $100 per item. Once an item exceeds the price threshold, the entire purchase becomes taxable.
Items explicitly excluded include athletic or protective gear (helmets, cleats, shin guards), accessories like belts and scarves, jewelry, watches, and handbags. Swimwear and costumes are not covered. Clothing for animals does not may have access to. Groceries, prepared foods, and restaurant meals are never tax-free during the holiday. Electronics, appliances, furniture, and vehicles remain fully taxable.
Local taxes still apply in most areas
While the state removes its portion of sales tax during the holiday week, most Texas cities and counties maintain their own local sales taxes. The amount of local tax varies by location—some areas charge 1 percent, others 2 percent or more. This means your actual savings depend on where you live and shop. A $100 pair of shoes might save you $8.25 in state tax but still be subject to your local rate.
A few Texas locations have no local sales tax, so residents in those areas receive the full benefit of the state holiday. You can check your local tax rate through your city or county tax assessor's office. Some retailers display the tax-free price at checkout; others calculate it at the register. If you are shopping near a county or city border, the tax rate at the register depends on the store's location, not where you live.
How to find out the exact dates each year
The Texas Comptroller of Public Accounts publishes the sales tax holiday dates on its official website before each August. You can also contact your local city or county tax assessor's office by phone—they maintain current information and can answer questions about what qualifies in your area. Many school districts send notices home in July reminding families of the dates, since the holiday aligns with back-to-school shopping.
Retailers often advertise the holiday in newspapers, online, and in-store starting in late July. However, not all stores promote it equally, and some smaller retailers may not participate or may not be aware of the rules. If you are unsure whether an item qualifies, ask the cashier before checkout. The store is responsible for applying the tax exemption correctly, but mistakes do happen.
What happens if you shop before or after the holiday week
Any clothing, shoes, or school supplies purchased outside the holiday week are subject to the full state and local sales tax. There is no carryover—the exemption applies only during that specific seven-day window. If you miss the dates, you pay tax on the full purchase price. Some people plan back-to-school shopping around the holiday to maximize savings, while others shop year-round and do not time purchases to the event.
If you accidentally buy items during the regular tax period and later realize the holiday was coming, you cannot return them and rebuy them tax-free just to save the tax. The transaction is complete. Some retailers offer price adjustments if you bring a receipt within a certain window, but that is a store policy, not a legal right.
Other Texas sales tax holidays and exemptions
Texas has a second, smaller sales tax holiday in November for Energy Star-certified appliances and products. This holiday typically runs for one week in mid-November and covers items like refrigerators, air conditioners, and water heaters that meet federal energy efficiency standards. The rules and price thresholds differ from the August holiday, and participation is lower among retailers.
Texas also offers year-round exemptions for certain purchases: groceries and unprepared food are never taxed, prescription medications are exempt, and medical devices prescribed by a doctor do not carry sales tax. These are permanent exemptions, not tied to a holiday week. Some nonprofits and government entities can purchase items tax-free year-round with proper documentation, but individual shoppers cannot use those exemptions.
Frequently Asked Questions
Do I have to show an ID or proof I am a student to get the tax-free price?
No. The sales tax holiday applies to anyone buying may have access to items during the designated week, regardless of age or student status. You do not need to prove you are buying for school. The exemption is based on the item type and purchase date, not the buyer's circumstances.
Can I order online during the sales tax holiday and get the tax removed?
It depends on the retailer and where the order ships. Some online stores apply the tax holiday to orders placed during the week, while others do not. Texas law requires retailers to follow the tax rules of the location where the item is delivered. Contact the retailer's customer service before checkout to confirm whether your order qualifies.
What if a store charges me sales tax on a may have access to item during the holiday week?
Ask the cashier or manager to correct it at the register. If the store refuses, you can contact the Texas Comptroller's office to file a complaint. Keep your receipt. Most errors are honest mistakes, and stores are trained to apply the exemption. If you discover the error after leaving, some retailers will issue a refund if you return with your receipt.
Are there limits to how much I can buy tax-free during the holiday?
No. You can purchase as many clothing items and pairs of shoes as you want without hitting a spending cap. School supplies and backpacks are limited by the $100-per-item price threshold, but there is no total dollar limit on how many items you can buy during the week.