If you live in Texas, then you have probably heard of tax free weekends. Tax free weekend is a single weekend in the year when the State takes a tax holiday. During this weekend, tax is either reduced or eliminated completely. So, you will not pay tax on some transactions during that time.
Tax free weekend is a pretty big deal because it allows you to purchase certain items without paying tax on them. This will make the price of the items lower, allowing you to get a real bargain on some items.
While a lot of people know that tax free weekend exists, there are still a lot of questions that people have regarding it.
These questions include why it exists, what is included in it, and, most importantly, when it is. We’ve answered all of these questions in this guide, so to find out more, keep on reading.
What Is A Tax Free Weekend?
First things first, let’s take a look at what a tax free weekend is. As we have said, a tax free weekend is a tax holiday that is organized by a State.
During this period, tax will either be reduced, or not charged on certain items that are bought. The items which are included in the tax free weekend are categorized, allowing you to know what to look for during the weekend in order to get the best deals.
A lot of people are puzzled by the existence of a tax free weekend. After all, it does seem a little strange that for one weekend a year, the government decides to eliminate taxes on certain items. So, what is the purpose of a tax free weekend?
Well, the main reason for tax free weekends isn’t for ordinary people to get a bargain on a new laptop, or a nice top. Instead, tax free weekends exist as incentives for business investment.
The increase in consumer purchases makes businesses more attractive to potential investors. So, while we consumers can pick up a bargain pair of shoes, businesses benefit from increased investment too. So, is there a tax free weekend in Texas? Let’s find out.
Is There A Tax Free Weekend In Texas?
As we have said, yes, there is a tax free weekend in Texas. Every year, Texas runs a tax free weekend because it is incredibly beneficial for the entire State.
Businesses attract more consumers, consumers get bargains, and over the course of the weekend, a massive amount of money is generated in the State.
It can be difficult to comprehend just how much money is generated in Texas’s tax free weekend, so let’s take a look at some examples.
In Texas’s 2021 tax free weekend, which ran from Friday, August 6th to Sunday, August 8th, the State estimated that Texans would save a massive $107.3 million in taxes. It isn’t difficult to see how much money the State as a whole would have to spend in order to save this much on taxes.
Tax free weekends are a pretty big deal in Texas, and it is something that a lot of people look forward to. It is the perfect time to purchase school and work supplies, but it is also great for treating yourself.
However, tax free weekend doesn’t apply to everything, so what is included in this holiday? Let’s take a look.
What Does Texas Tax Free Weekend Include?
As tax free weekends are something that happens every year in Texas, it is something that a lot of people plan for. Usually States organize tax holidays to fall at times of the year when sales are at a high.
But, in Texas, the fact that tax free weekend even exists is enough to increase sales significantly. So, if you are thinking of splurging next time tax free weekend comes around, you probably want to know what is included.
Well, as you would expect, there are some restrictions that apply to tax free weekends, and not everything is included in it. But tax-free weekends are available both online and in stores in Texas.
You can use tax free weekends to prepare for going back to school or for work because school supplies, footwear, clothing, and backpacks are all included. Likewise, tax free weekends also include electronic devices too.
The typical rules that apply in tax free weekend are that you can buy the following tax-free:
- Clothing costs less than $100 an item.
- Personal computers and computer devices cost less than $1,500.
- School supplies cost less than $50.
However, the rules for tax free weekends do differ year on year. So, if you are planning to take advantage of this holiday, it is important that you research what items are tax free on that specific holiday you are planning to buy in.
When Is Tax Free Weekend In Texas?
But what you really want to know is when tax free weekend is in Texas. Of course, the date of tax-free weekend changes year on year in line with the calendar. But, for many years Texas has been holding their tax-free weekend in August. Typically, it will fall on the first full weekend in August.
In 2021, tax free weekend ran from Friday, August 6th to Sunday, August 8th. In 2022, it is scheduled to run from Friday, August 5th to Sunday, August 7th,
So, it is safe to assume that going forward, the tax holiday in Texas will always fall around these dates in August. However, if you want to double-check when tax free weekend is in Texas, you can do so here.
In short, tax free weekends in Texas usually fall on the first full weekend of the month. In 2021, this was August 6-8th, and in 2022, this will be August 5-7th. However, you can easily check when this holiday is by visiting the Texas website.
But, most of the time, there won’t be a need to double-check because tax free weekend is a pretty big holiday, and as a result it is usually spoken about a lot in the lead up to this tax holiday.