How to Save Money on Texas Tax-Free Weekend
Texas Tax-free weekend has become somewhat of a tradition in the Lone Star State. People from around the state will hit the stores next week for this year’s tax-free weekend, which begins Friday, August 9 and runs through Sunday, August 11.
The burning question is, can you really save that much money by not paying sales tax? Here’s what we’ve uncovered.
The National Retail Federation predicts that back-to-school shopping will cost close to $900 per household. We think that sounds pretty low if you have more than one kid to shop for, or you are teacher shopping for your classroom. But we’ll use that number to do the math.
If everything on your shopping list qualifies as tax-free, and you shop in Smith County, you will save $74.25 on purchases totaling $900. That’s not much, but when you stack it with big discounts, your savings increase.
Businesses want you to shop locally, so they often hold big sales on tax-free weekend to get your business. Consider this scenario:
- Let’s say you’re buying one or more pairs of Nike Air Max 270 shoes, which generally retail for about $160 a pair.
- You find them on sale at 40% off the regular price.
- That takes the price down to $96 a pair (a savings of $64)
- You save $64 on the shoes, and since they are now under $100, you save about $8 on sales tax. That’s a total savings of $72 on just one pair of shoes.
For your items to qualify as tax-free, each one must cost less than $100 and fall into these categories:
- School Supplies
- Clothing
- Footwear
- Face Masks
- Backpacks
Even better, if you pay for your purchases using a Back-to-School Loan from Kelly Community instead of a high-interest credit card, you won’t pay as much interest, and you’ll have that loan paid off before the next school year begins. Your debt won’t linger like it might with a credit card.
To summarize:
- Buy items that cost less than $100
- Shop big sales to get higher-priced items below $100 (so you don’t pay sales tax)
- Use a Back-to-School Loan instead of a high-interest credit card.
Happy shopping and even happier saving!
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