TN Sales Tax Holiday

Tennessee's annual sales tax holiday will begin at 12:01 a.m. on Friday, Aug. 3 and end Sunday, Aug. 5 at 11:59 p.m.

The items that are exempt will be the same as last August; generally, school-related supplies, clothing and computers. While it offers taxpayers a great opportunity to save tax dollars on these types of seasonal purchases, it is important to note that the tax exemption provided has exceptions and limitations. Generally, the exemption from the tax only applies to items in certain categories selling for $100 or less or computers selling for $1,500 or less. There is, however, no limitation on the number of items bought without any sales tax during this period. It is also important to know that the law also applies to purchases made over the phone or Internet.

What is Tax Free?

• Clothing - $100 or less per item. Examples of tax-free clothing include: Belts, Caps, Coats, Dresses, Gloves, Hats, Hosiery, Jackets, Jeans, Neckties, Pants, Scarves, School Uniforms, Shirts, Shoes, Socks, Sneakers, Underwear. It does not include accessories such as jewelry, bags or sports and recreational equipment like baseball gloves.
• School & Art Supplies - $100 or less per item. Examples of tax-free School Supplies include: Binders, Book Bags/Backpacks, Calculators, Chalk, Crayons, Erasers, Folders, Glue, Lunch Boxes, Notebooks, Paper, Pens, Pencils, Rulers, Scissors, Tape. Specifically excluded are items such as Instructional Material, including Reference Books and School Computer Supplies (Compact Discs, printers, and Printer Ink).
• Computers - $1,500 or less. Computers (including laptops and tablet computers) with a purchase price of $1,500 or less, not for use in a trade or business, are exempt from sales tax.