It’s only mid-July, but back-to-school time is right around the corner, and some states are helping residents get ready.
Many states offer residents a limited-time opportunity to purchase back-to-school items without having to pay their state sales tax on the items, but do Illinois and Indiana offer similar deals?
Here’s what to know.
What is a sales tax holiday?
A sales tax holiday refers to an established period of time during which residents can purchase specific items at a reduced rate.
Some states eliminate the sales tax entirely, or simply reduce it, and apply that savings to specific items. Illinois reduced its state sales tax on back-to-school items from 6.25% to 1.25% as recently as 2022.
Does Illinois have a state sales tax holiday for back-to-school items?
The state has not had a sales tax holiday for back-to-school since the 2022 school year, and will not have one in 2025.
There was an effort made to establish a back-to-school tax holiday this year, as State Sen. Christopher Belt introduced Senate Bill 1673 during the spring legislative session.
According to the General Assembly’s website, the measure was referred to the revenue committee, but never advanced. It was referred back to the assignments committee at the end of the legislative session.
Do neighboring states have sales tax holidays?
According to the Federation of Tax Administrators, Illinois’ neighbors generally don’t have sales tax holidays either. Indiana does not have one scheduled, nor does Wisconsin, according to the website.
Iowa has a sales tax holiday on back-to-school clothing and footwear in early August, while Missouri offers a back-to-school sales tax holiday during the lead-up to school beginning.
What other states have sales tax holidays?
According to the FTA, Arkansas, Alabama, Connecticut, Florida, Mississippi, New Mexico, Oklahoma, South Carolina, Tennessee, Texas and West Virginia offer holidays for back-to-school time.
Some states also offer sales tax discounts for soldiers and National Guard troops, while Texas offers holidays for summer preparations like generators, water efficiency products and more.