Tennessee families get a three-day break from sales tax when the state’s annual back-to-school holiday kicks off at 12:01 a.m. Friday, July 31, and wraps at 11:59 p.m. Sunday, Aug. 2. During that window, clothing and school supplies priced at $100 or less per item, along with computers priced at $1,500 or less, can be bought without paying state or local sales tax.
Gov. Bill Lee is urging parents not to leave that money on the table, saying, "I encourage every family to take advantage of back-to-school savings, and thank the General Assembly for their partnership to provide direct financial relief for tax payers," according to NewsChannel 5. Retailers often stack doorbuster discounts and manufacturer coupons on top of the tax break, so shoppers who come in with a game plan, a comparison list and a little patience can stretch the holiday even further.
What Counts - The Dates, Limits and Rules
The dates and spending caps are set in state guidance. The sales tax holiday starts the last Friday in July and ends the following Sunday, and qualifying items include clothing plus school and school art supplies priced at $100 or less per item, and computers priced at $1,500 or less, according to the Tennessee Department of Revenue's date guidance and its list of qualifying items. The department is clear that partial exemptions do not apply, so you cannot break up bundled sales to sneak under the price cap, and many accessories, extended warranties and printer supplies stay fully taxable.
Online Orders, Sample Savings and Smart Shopping Tips
Online, phone and mail orders can also qualify as long as the purchase is made during the tax-free period and the seller is registered to collect Tennessee tax, a point the state has made and local coverage has underscored, per Action News 5. With Tennessee’s average combined state and local sales tax rate sitting around 9.61%, skipping the tax on a qualifying $1,500 laptop means roughly $144 in savings, according to the Tax Foundation. To squeeze the most value out of the weekend, shoppers should compare prices in advance, stack coupons where stores allow it and double-check that the final checkout screen actually reflects the tax exemption, as a consumer guide from Kiplinger recommends.
Before you load up a cart, it is worth scanning the Department of Revenue's full guidance so you know exactly which SKUs are in and which are out. Hitting stores early, setting digital price alerts and using in-store pickup can help lock in a sale price while sidestepping some of the weekend rush and potential shipping slowdowns.
