States Roll Out Sales Tax Holidays on School Supplies

Parents, grab your carts and caffeinate. It’s that time of year when states throw a tax-free bone to shoppers and call it “relief.” In 2025, 19 states are running some form of sales tax holiday, three days here, a week there, even a full month in Florida if you're feeling fancy. The idea? Help families save a little cash on back-to-school must-haves. The reality? You might want to look closer at the fine print and your receipt. Sure, shaving off 6% to 10% in sales tax on a laptop or some Crayolas sounds like a no-brainer. But these “holidays” are more like pop-up tax experiments dressed as generosity. Politicians love them big time. Why? Because they make them look like heroes without doing the messy work of actual tax reform. But here’s the kicker: most of the time, these holidays just shift spending from one weekend to another, and that’s not the kind of economic boost that sends confetti flying at the Department of Revenue.

Backpacks, MacBooks & Pricey Loopholes

Let’s talk about numbers. KPMG says families are dropping nearly $380 per kid this year just on school prep. The National Retail Federation? They put it closer to $890 when you count it all in. So yeah, skipping sales tax can feel like a win, especially if you’re eyeing that MacBook during Florida’s month-long holiday or cashing in on a weekend break in Massachusetts, where you can grab anything under $2,500 tax-free.

But, and this is a big one, retailers aren’t stupid. They know when the tax holidays hit, people flood in like it’s Black Friday without the doorbusters. So, what do they do? Often, they nudge prices up. Some research suggests stores can quietly absorb up to 20% of the tax break through price hikes. And if you’re waiting until August 1 to buy notebooks, you may find slim pickings and price tags that sting harder than a last-minute supply list. So, are tax holidays helping families or just assisting politicians to look good?

Small Biz Blues and Compliance Headaches

For big box chains, tax holidays are a minor hassle. For small businesses? They're chaos in khakis. Reprogramming registers, decoding item lists, hiring weekend help, it’s all part of the unpaid overtime package. And those price caps? They often favor mass retailers selling cheap basics over small shops with higher-quality inventory. Now imagine you're a small online seller. Florida or Texas might change the last-minute rules (which they love to do), forcing you to scramble. Overcharging tax? Legal trouble. Undercharging? Revenue hit. Welcome to the no-win zone.

Nevada’s setup? Even messier. National Guard families now have to apply 45 days in advance, pay the tax upfront, and file for a refund later with receipts and a letter in hand. It’s less relief, more red tape, and it’s no wonder many just skip it. Wouldn’t a permanent rate cut do more than a weekend stunt?

When Tax Holidays Feel Like Gimmicks

Let’s not sugarcoat it: these holidays are political patches on a busted tax system. If you believe sales tax is a burden worth suspending, what does that say about the other 51 weeks of the year? That’s like offering free coffee one day and pretending you’re solving caffeine inflation. Even economists across the board, from the left-leaning Institute on Taxation and Economic Policy to the supply-side cheer squad at the Tax Foundation, agree these holidays are inefficient, regressive, and gimmicky. Most of the “benefit” goes to people who could’ve afforded the items anyway, while low-income families may miss out entirely if they can’t time their shopping or build up savings just to hit a weekend window.

The Takeaway

Look, if you’re in a state with a tax holiday and you need to gear up for school, go ahead and take advantage. Stack it with some coupons, use a cashback app, maybe swipe that rewards card, and squeeze out every dollar. But don’t mistake this for structural tax relief. It’s temporary, it’s inconsistent, and it’s not solving any long-term affordability issues. For lawmakers, these holidays are easy PR. For families, they're a small break. For the economy? Meh. If states really wanted to help, they’d consider permanent rate cuts or targeted aid that doesn’t require jumping through hoops or shopping on a government-approved weekend.  Until then, enjoy your “holiday.” Just don’t call it a solution.