Overview
- Multiple states will hold tax-free or reduced-tax windows starting Friday, Aug. 7, with Texas, Ohio and Virginia offering three-day holidays through Aug. 9 and Illinois running a longer, 10-day reduction through Aug. 16.
- Texas will exempt most clothing, footwear, backpacks and school supplies priced under $100 per item during its Aug. 7–9 weekend, with state officials estimating roughly $140 million in consumer savings.
- Ohio’s Aug. 7–9 holiday is narrower than in past years and applies only to clothing priced $75 or less per item and school supplies and instructional materials priced $20 or less per item, a change lawmakers tied to preserving revenue for property-tax relief.
- Illinois’ Aug. 7–16 measure cuts only the state portion of sales tax — lowering the state rate from 6.25% to 1.25% on qualifying items — while local sales taxes still apply and several categories such as electronics and instructional art supplies remain excluded.
- Practical rules will shape who benefits: online or catalog purchases qualify only if payment posts during the exemption window, shipping or handling can push an item over per-item price caps, and analysts warn holidays shift buying timing, raise compliance costs for retailers, and provide limited long-term relief.