Nashville, TN – The State of Tennessee’s Annual Sales Tax Holiday is held every year on the first Friday in August and ends the following Sunday night. This year’s tax-free holiday weekend begins at 12:01am on Friday, August 5th and ends Sunday, August 7th at 11:59pm.
For those making purchases in Montgomery County, this means a savings of 9.5 percent on purchases that meet the tax free requirements.
What’s Tax-Free?
Tax-free items include clothing with a price of $100.00 or less per item, school and school art supplies with a price of $100.00 or less per item and computers with a price of $1,500 or less. These items are exempt from state and local sales tax in Tennessee during the holiday. Local governments are held harmless and are reimbursed lost sales tax revenues by the state.
Who Can Participate?
Any individual can make a tax-free purchase during the holiday. However, items purchased for use by a trade or business are not exempt.
Can I Order by Mail, Telephone, E-Mail or Internet?
The holiday also includes purchases of qualified items sold via mail, telephone, e-mail or Internet if the customer orders and pays for the item and the retailer accepts the order during the holiday for immediate shipment, even if delivery is made after the exemption period.
What if the Item is Backlogged or on Backorder?
If a customer wishes to order a certain tax-free item during the holiday and it is not in stock, the item remains tax-free upon delivery. In other words, backlogs and backorders outside the buyer’s control will not affect the exempt status of tax-free items. Intentionally delayed sales are taxable.
What if I Want to Place an Item on Layaway or Pay for an Item That is Currently On Layaway?
Qualified items previously placed on layaway are exempt when the final payment is made during the holiday. Items are also exempt if placed on layaway during the holiday and the final payment is made after the exemption period.
When Did Sales Tax Holidays Start in Tennessee?
Tennessee Code Annotated 67-6-393 established annual sales tax holidays in Tennessee in 2006. The first Sales Tax Holiday was August 4th-6th, 2006, saving Tennesseans about $15 million. Since then, Tennesseans have enjoyed $8 to $10 million in tax savings each holiday.
Clothing ($100.00 or less)
Tax-Free Items Include:
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Items Subject to Sales Tax Include:
Clothing Accessories: Belt Buckles (sold separately), Briefcases, Cosmetics,
Hair Notions, Handbags, Jewelry, Patches and Emblems (sold separately), Sewing Equipment and Supplies, Sewing Materials, Sunglasses, Umbrellas, Wallets, and Watches.
Protective Equipment: Breathing Masks, Face Shields, Hard Hats, Hearing Protectors, Helmets, Paint or Dust Respirators, Protective Gloves and Welder’s Gloves, Safety Glasses and Goggles, and Tool Belts.
Sports or Recreational Equipment: Ballet or Tap Shoes, Cleated or Spiked Athletic Shoes, Gloves (Baseball, Boxing, Golf), Goggles, Hand and Elbow Guards, Life Preservers and Vests, Mouth Guards, Roller and Ice Skates, Shin Guards, Shoulder Pads, Ski Boots, and Wet Suits and Fins.
School & Art Supplies ($100.00 or less)
Tax-Free Items Include:
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Items Subject to Sales Tax Include:
School Computer Supplies: Compact Disks, Computer Printers, Computer Storage Media, Diskettes, Handheld Electronic Schedulers, Personal Digital Assistants, and Printer Supplies including Paper and Ink.
Note: Textbooks and Workbooks are always exempt from sales tax.
Computers ($1,500 or less)
Tax-Free Items Include:
- Computers with a purchase price of $1,500 or less, not for use in a trade or
business, are exempt from sales tax. - A computer is a central processing unit (CPU) that includes a monitor, keyboard, mouse, speakers, cables to connect components, and preloaded software.
Items Subject to Sales Tax Include:
Computer parts: Monitors, Keyboards, Speakers, and Scanners when not sold in conjunction with a CPU. Individually purchased Software, or other software not part of a preloaded software package on the initial purchase of a computer.
Storage Media: such as Diskettes and Compact disks. Handheld Electronic Schedulers, Personal Digital Assistants (PDAs) and Video Game Consoles, Computer Printers, and Printer Supplies including Paper and Ink.
For More Information
Please contact the Tennessee Department of Revenue.
Online: www.tntaxholiday.com or www.TN.gov/Revenue
E-mail: salestax.holiday@TN.gov
Telephone: 800.342.1003
Monday – Friday, 7:00am – 5:00pm, Central Time.
