Customers love sales tax holidays, but for ecommerce businesses, they can pose a challenge. This year, several US states will offer the sales tax holiday 2026. And since each state has its own rules, it’s important to know your obligations during these periods.
Track your sales tax holidays in 2026 better. We created this quick, comprehensive guide for every sales tax holiday in each state this year to help you stay updated and on track.
What is a Sales Tax Holiday?
A sales tax holiday is a temporary period during which a state or local government waives sales tax on specific categories of products. These events are designed to provide financial relief to consumers and stimulate retail activity. While often called “tax-free weekends,” these holidays can range from a single day to an entire month. For e-commerce sellers, it is important to note that most exemptions apply only to non-business, personal use and typically feature price caps (e.g., clothing is only tax-free if the individual item is under $100). The most common types of sales tax holidays in 2026 include:- Back-to-School: The most widespread holiday, usually held in late July or August. It typically covers clothing, footwear, school supplies, and sometimes personal computers or tablets.
- Emergency Preparedness: Common in states prone to hurricanes or severe weather (like Texas, Alabama, and Florida). These cover items like portable generators, batteries, tarps, and first-aid kits.
- Energy Star Appliance: Encourages the purchase of energy-efficient appliances (refrigerators, washers) or water-saving products.
- Second Amendment: Specific to states like Mississippi, these holidays exempt firearms, ammunition, and hunting supplies.
- Outdoor Recreation or “Freedom” Holidays: A newer category (notably in Florida) that exempts outdoor gear like camping equipment, fishing tackle, and even admissions to state parks or concerts.
Sales tax compliance generally falls into two categories:
- Seller Collection: The retailer calculates and collects tax at the point of sale.
- Buyer Liability (Use Tax): If a seller doesn’t collect tax, the buyer is technically responsible for reporting and paying ‘use tax’ to their state.
For ecommerce sellers, this applies based on the date the customer places and pays for the order, even if it ships later.
Sales Tax Holidays 2026 State-By-State Schedule
Besides the five states with no sales tax, around 18 states offer one or more sales tax holidays and tax-free weekends.
Below is a state-by-state guide schedule to sales tax holidays in 2026. Note: Sales tax laws are subject to change. Bookmark this page, as we will update this guide throughout 2026 whenever state legislatures announce new tax-free periods or adjust price caps.
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Sales Tax Holiday 2026 Frequently Asked Questions
What states offer Sales Tax Holidays for specific items only?
In 2026, most participating states focus on specific categories like back-to-school (clothing and supplies) or emergency preparedness. However, there are exceptions: Ohio offers a broad holiday covering almost all tangible personal property under $500. Other states like Florida and Texas have multiple holidays throughout the year for specific niches like “Outdoor Freedom” or “Water Efficiency.How should ecommerce businesses ensure compliance during Sales Tax Holidays?
Ecommerce sellers must configure their tax engines (like TaxHero) to recognize the customer’s delivery address. Because sales tax is destination-based, a seller in California must honor the Texas holiday when shipping to a customer in Dallas. Failure to stop collecting tax on qualifying items can lead to class-action lawsuits, state audits, and a loss of customer trust. In many states, the Department of Revenue even encourages customers to report retailers who “overcharge” during these windows.What products are included in tax-free weekends?
While every state is different, the most common categories for 2026 are:- Back-to-School: Clothing, footwear, and basic school supplies.
- Disaster Prep: Generators, batteries, and flashlights.
- Energy Efficiency: Energy Star-rated appliances.
- Second Amendment: Firearms and ammunition (primarily in MS and LA).
When are tax-free weekends in 2026?
Various states announce tax-free weekends at different times throughout the year. Sometimes, the states may expand existing tax-free weekends to benefit citizens. The states may also suspend tax-free weekends when tight on budget. Refer to the schedules we shared above to learn about tax-free weekends occurring in 2026.
Do Sales Tax Holidays have price restrictions?
Yes, and they are strictly enforced. Most states use a “per-item” price cap. For example, if a state has a $100 cap on clothing and you sell a jacket for $110, the entire $110 is taxable. You cannot “deduct” the first $100 and only tax the remaining $10. Our 2026 schedule lists these specific caps to help you program your checkout accurately.
Streamline your holiday sales tax with TaxHero today!
Sales tax rules and regulations change frequently in all states. As an ecommerce business, you must track sales during sales tax holidays to ensure prompt compliance. Automate your sales tax compliance with TaxHero to avoid any legal penalties. Book a call to learn how we can help your business.
