Sales Tax Holidays 2025: What Ecommerce Sellers Need to Know

Updated 1/6/26

Sales tax holidays are great for shoppers… but confusing for ecommerce sellers.

Every year, dozens of states roll out temporary sales tax exemptions on things like school supplies, clothing, energy-efficient appliances, and even emergency gear.

These sales tax holidays are a win for consumers, but for ecommerce sellers, especially those selling into multiple states, they can be a compliance headache waiting to happen.

And while you may be using a sales tax engine like Avalara or Shopify Tax to help manage the complexity, you’re still responsible for understanding what qualifies, what changes each year, and how to make sure your products are properly mapped.

Sales Tax Holidays 2026

The good news? We’ve got you covered.

In this post, we’ll break down:

What sales tax holidays actually are (and why they’re not as simple as they sound)
The four main types to know in 2026
Real state-by-state examples to watch for
Why you need to know about them (even if you have a sales tax engine)
How to avoid common compliance mistakes (even if you’re using automation)
How to get help, so sales tax holidays don’t catch you off guard

Ready to Eliminate Your Sales Tax Headaches CTA

Let’s get into it.

Key Takeaways

Sales tax holidays vary by state, product type, price cap, and purchase use. Last year’s rules may not apply.
Using a sales tax engine doesn’t remove your responsibility for correct product mapping and state compliance.
Back-to-school is the most common holiday, but many states also exempt emergency supplies, energy-efficient products, and outdoor gear.
To stay compliant, know where you have nexus, what qualifies for exemption, and how 2025 rules affect your setup.

If you would prefer to watch the video, click here.

What Are Sales Tax Holidays, Really?

A sales tax holiday is a limited-time window (usually a weekend or a few days) when specific items are exempt from sales tax. States use these holidays to encourage certain types of spending, like back-to-school shopping, disaster preparedness, or purchasing energy-efficient products.

In most cases, the exemptions apply only to purchases for personal use, not business use. That means buyers in certain states can purchase things like school supplies, clothing, computers, appliances, or even tents and fishing gear without paying sales tax, as long as the items fall within specific categories and price limits.

📌 Need a refresher on how sales tax works for ecommerce? To get clear on nexus, taxability, and when you’re required to collect, check out:

It’s also important to note:

Not all states offer sales tax holidays.
Some states require all retailers (including online sellers) to participate, while others don’t.
Whether you’re required to comply depends on your nexus status, registration, and where your customers are located.

So even if your business is based in one state, if you’re collecting sales tax in another state that’s running a holiday, you may be required to follow their exemption window.

That’s why it’s essential to know where you have nexus, what products qualify, and when the rules go into effect.

For a detailed list of economic nexus thresholds by state, download our 10 Steps to Ensure Sales Tax Doesn’t Burn Down Your Ecommerce Business guide. Besides the list, you’ll also get a clear roadmap of how to make sure your sales tax is being handled correctly (or what you need to do if you’re doing it yourself).

The 4 Main Types (and What’s Happening in 2026)

Sales tax holidays tend to fall into a few predictable categories. Below are the four most common types you’ll see in 2026, along with real examples to help you spot which ones might apply to your products or customers.

Back-to-school
Disaster preparedness
Green/Energy Star + WaterSense
Second Amendment & Miscellaneous

Back-to-School Sales Tax Holidays

This is by far the most common type of sales tax holiday, and is the one most online sellers need to prepare for. These holidays typically exempt items like:

Clothing and footwear (usually under $100 per item)
School supplies (under $20–50 depending on the state)
Backpacks, books, and sometimes computers or tablets (often with a dollar cap)

When it happens: Late July through mid-August.

Examples for 2026:

Texas: August 7-9
Tennessee: July 24-26
Florida: August 1-31 (yes, a whole month!)
Missouri: August 7-9

Note: Some states include electronics and others don’t. Be sure to double-check what qualifies.

Disaster Preparedness Holidays

These are designed to encourage people to stock up on emergency supplies before hurricane or wildfire season. Qualifying items often include:

Portable generators
Flashlights and batteries
Coolers, tarps, weather radios, and emergency ladders
Fuel containers and fire extinguishers

When it happens: Often in spring, before peak storm season.

Examples for 2026:

Texas: April 25-27
Florida: Year-round (permanently exempted as of August 1, 2025)
South Carolina: August 7-9
Oklahoma: August 7-9
Alabama: Feb 20-22

Note: These typically have strict price caps, like $75 for batteries or $3,000 for generators.

Green/Energy Star + WaterSense Holidays

Some states offer sales tax holidays to encourage environmentally friendly purchases, especially appliances or water-saving products. Qualifying items may include:

Energy Star certified refrigerators, washers, and air conditioners
Programmable thermostats, LED light bulbs, and ceiling fans
Mulch, rain barrels, drip irrigation, and drought-tolerant plants

When it happens: Early in the year (usually spring).

Example for 2026:

Missouri: April 19-25 (Energy Star appliances)
Texas: May 23-25 (both Energy Star and water-efficient products)

Note: These holidays often apply to both residential and business use…but not always.

Second Amendment & Miscellaneous Holidays

Some states have politically driven or specialty sales tax holidays. These vary widely and can cover:

Firearms, ammunition, archery supplies
Hunting and fishing equipment
Tools, outdoor recreation gear, even musical instruments in some cases

When it happens: Often in the fall or tied to specific weekends.

Examples for 2026:

Louisiana: September 4-6 (unconfirmed)

Note: These dates and rules change all the time. Just because your state offered one last year doesn’t mean they will again, or with the same rules.

For a full list of sales tax holidays, see the chart at Sales Tax Institute.

Why It Still Matters – Even If You Use a Sales Tax Engine

If you’re already using a sales tax engine, you’re on the right track. These tools can automate a lot of the heavy lifting – calculating the right rate, applying exemptions, and even accounting for local surtaxes.

But here’s the reality: the software only works as well as the information you give it.

Most engines rely on product mapping by assigning each of your SKUs to a product tax code that tells the system how to treat it. If that mapping is off, or too general, the software won’t know that your item qualifies for an exemption during a sales tax holiday.

To make sure you’re actually compliant, you still need to:

Know which of your products might qualify for a holiday exemption
Ensure your product catalog is mapped correctly to the right tax codes
Understand which states you’re required to comply with, based on where you have nexus and where you’re registered

We’ve seen it happen too many times: A seller assumes their tax engine is handling everything behind the scenes, only to find out they were charging tax during a holiday (or worse, not charging it when they should have).

So yes, use software. But don’t take your hands completely off the wheel.

How to Stay Compliant Without Losing Your Mind

Whether you manage tax manually or use automation, sales tax holidays still require planning.

Here’s how to approach it, whichever route you’re on:

If You’re Doing It Manually

If you’re not using automated sales tax software, compliance means keeping a close eye on each state’s rules and managing your systems accordingly.

Here’s what that looks like:

Build a calendar with each state’s holiday dates and product categories
Create product collections or rules in your sales channels so you can turn tax collection off and back on as needed
Track price thresholds (e.g., “only clothing under $100 is exempt”)
Account for time zones, especially if you’re based in a different state than your customer

This approach works, but it’s time-consuming and easy to miss if you don’t stay organized.

If You’re Using a Sales Tax Engine

Automation helps a lot, but it’s not set-it-and-forget-it.

Here’s what you still need to do:

Make sure your product catalog is correctly classified. Your sales tax engine relies on product tax codes to apply exemptions correctly
Stay updated on each year’s holiday dates, categories, and price caps (they change often)
Set up internal checks or occasional audits to make sure nothing slips through the cracks

Software doesn’t replace strategy. It just makes execution smoother when everything’s set up right.

How to Get Help, So Sales Tax Holidays Don’t Catch You Off Guard

Sales tax holidays are great for your customers, but they can be a compliance trap for ecommerce sellers who aren’t paying attention. Whether you’re managing it manually or using a sales tax engine, it pays to know:

Which states are running holidays this year
What items qualify and at what price
Whether your products are correctly classified in your system

If you’re handling sales tax manually, bookmark a calendar and start building those rules early.

If you’re using software, double-check your mappings and make sure your settings reflect this year’s changes.

Bottom line: Don’t assume last year’s setup will still work.

If sales tax holidays are just one more thing you don’t have time to track, we can help.

At LedgerGurus, we help ecommerce sellers stay compliant across every state… without burning hours in spreadsheets or platform settings. Reach out to schedule a discovery call to see how we can take this off your plate entirely.

FAQs

Am I required to participate in a sales tax holiday if I’m an online seller in another state?

Yes. If you have nexus or are registered to collect in a state with a sales tax holiday, you’re typically required to follow the rules, even if your business is based elsewhere.

Does my sales tax engine automatically account for sales tax holidays?

It depends. Most engines (like Avalara or Shopify Tax) have holiday logic built in, but you still need to ensure your products are mapped to the correct tax codes or the exemptions won’t apply correctly.

What happens if I charge sales tax when I shouldn’t have?

You may be out of compliance, and in some cases, you’ll need to refund customers or work with the state to correct it. This can also affect your customer trust.

Are shipping and handling charges exempt during sales tax holidays?

It depends on the state. Some states include shipping in the total price (which can disqualify an item from exemption), while others don’t. Check the specific rules for each state you sell into.

Do these holidays apply to business-use purchases too?

Most do not. Sales tax holidays are generally limited to personal-use purchases only, and business purchases are excluded.

Each state handles returns and exchanges differently. For example, exchanging an item for the same one in a different size may remain exempt, but returning it and buying something else might trigger sales tax.

Are sales tax holidays optional for sellers in every state?

No. Some states (like New Mexico or Alaska) make participation optional, but most require all registered sellers to comply.

Do sales tax holidays apply to marketplace sales (like Amazon or Walmart)?

Yes. If you sell on a marketplace and the platform is the marketplace facilitator (like Amazon, Walmart, or Etsy), the platform is responsible for handling sales tax collection, including exemptions during sales tax holidays.

However, you’re still responsible for:

Making sure your product listings are categorized correctly, so the platform knows whether the item qualifies for an exemption
Checking if your own direct-to-consumer channels (like Shopify or WooCommerce) are set up correctly for the same holiday
Knowing where you have nexus, since this affects whether you’re subject to the holiday at all

So yes, marketplaces usually handle the tax part, but you still need to manage your listings and understand your obligations.

Sales Tax Holidays 2026: What Ecommerce Sellers Need to Know

Key Takeaways

What Are Sales Tax Holidays, Really?