Four US States Launch Back-to-School Tax Holidays

The governments of four US states are implementing annual sales tax holidays to assist families with the rising costs of back-to-school shopping. New Mexico and West Virginia began their tax-free periods on July 31. New Mexico's holiday runs through August 2, exempting clothing and shoes under $100, computers up to $1,000, and classroom supplies under $30. West Virginia's period lasts until August 3, covering clothing, school supplies, computers, and select sports equipment.

Oklahoma and Texas have scheduled their events for August 7 through August 9. Oklahoma is exempting specific clothing and shoe purchases from all state, city, county, and local taxes. Texas is exempting backpacks, school supplies, clothing, and footwear priced under $100.

While these measures aim to offset inflation, some families in New Mexico report that school supplies are averaging 8% more expensive than last year, which could add $175 per child to total spending. To further incentivize shopping, the Huntington Mall in West Virginia is providing $25 gift cards to customers spending $250 or more and hosting a fashion show on August 1.