Back to school tax-free weekend is just around the corner

Both New Mexico and Texas are part of the fifteen states who offer a tax free shopping weekend during the month of August.

People in the Borderland can start preparing for a weekend of tax-free shopping. Fifteen states in the U.S. have a designated weekend every August where shoppers can purchase back-to-school needs for their children without paying additional state tax.

Items eligible for tax-free purchase differ from state by state but may include school supplies, clothing and shoes. Sometimes computers are included.

For that weekend, the state suspends collection of gross receipts tax on sales of qualifying items so customers can buy the items tax free.

Shoppers in New Mexico will be able to make purchases the weekend of Aug. 4-6 without paying state tax.

B-200.18, List of Taxable and Non Taxable Items for New Mexico's Gross Receipts Tax Holiday contains list divided into categories, but please note that within some categories there is a set dollar maximum. To qualify for the deduction, clothing or shoes must be priced at less than $100 per unit. The price limit for desktop, laptop, tablets or notebook computers is $1,000, and for related computer hardware, it is $500. School supplies for use in standard, general-education classrooms must be under $30 per unit. There are items specifically excluded by statute in all categories. Those items are always taxable.

The Texas comptroller's office said the tax-free weekend for a number of school-related items will be Aug. 11-13.

The Texas law exempts most clothing, footwear, school supplies and backpacks priced less than $100 from sales and use taxes. That could save buyers about $8 on every $100 spent.

The sales tax exemption for Texas also includes items sold online or by telephone or mail. Shoppers can use layaway plans to get the tax break.

There are exceptions. For example, the sales tax holiday does not apply to jewelry, handbags, purses, briefcases, luggage, umbrellas, wallets, watches and similar items.

The Texas tax break weekend has been an annual event since 1999.

Did you know? Certain states like Alaska, Delaware, Montana, New Hampshire and Oregon get tax-free shopping all year long.

The Associated Press contributed to this story.

close video ad
Unmutetoggle ad audio on off