Tax-Free Back-to-School Deals

Understanding the Tax-Free Holiday for Back-to-School Shopping

The tax-free holiday has become a highly anticipated event for families preparing for the new school year. With the opportunity to save on essential items, it’s a great time to shop smart and stretch your budget further. This year, the holiday begins on August 1 at midnight, giving families a chance to take advantage of tax exemptions on a wide range of school-related purchases. However, navigating what is and isn’t tax-free can sometimes be confusing, especially with some unexpected exclusions.

What’s Included in the Tax-Free List?

According to South Carolina legislators, most items related to education are tax-exempt. This includes school supplies, clothing, shoes, and even certain electronics. For example, a sports uniform would typically be tax-free, as well as computers, earphones, flash drives, and printers. However, not all items fall under this exemption. Sports equipment such as baseball mitts and helmets, for instance, are not included in the tax-free list.

This was a point of discussion during a recent test between father and son, Graham Holt and his 5-year-old son Grayson. While both agreed that a sports uniform would be tax-free, they had different opinions on other items. Grayson thought a baseball mitt would be exempt, but his father disagreed. In this case, Graham was correct—sports equipment is not tax-free.

Another surprising exclusion involved glasses and contacts. Graham initially believed they were tax-free, but Grayson correctly pointed out that they are not. This highlights the importance of reviewing the full list of tax-exempt items before making purchases.

Tricky Exclusions and Exceptions

Some of the most confusing items on the tax-free list include:

• Show curtains are tax-free, but curtain hooks and rods are not
• Mattress coverings are tax-free, but mattresses themselves are not
• Bedspreads and comforters are tax-free, but sleeping bags are not
• Computers, earphones, and printers are tax-free, but TVs are not
• Purses are tax-free, but wallets are not
• Washcloths and towels are tax-free, but paper towels are not
• Diapers are tax-free, but toilet paper is not

These distinctions can be frustrating for shoppers, as some items seem logically similar but fall into different categories. College student Serenity Samuel expressed her confusion after failing to identify which items were tax-free, saying, “What, that doesn’t make sense?”

How Much Can You Save?

In addition to the state sales tax, many local jurisdictions also impose their own sales taxes. During the tax-free holiday, these additional taxes are waived as well. For example, in Greenville, where there is no local sales tax, shoppers will save 6% on eligible items. In Spartanburg, where a penny sales tax applies, the total savings would be 7%. In Charleston, where the local tax is 3%, the total savings would be 9%.

This means that depending on where you live, you could save significantly more than just the standard 6% tax rate.

Online Shopping and Tax-Free Benefits

One common question among parents is whether online purchases qualify for the tax-free holiday. According to the South Carolina Department of Revenue, online orders are also tax-free as long as the items meet the criteria outlined in the tax-exempt list. This includes shipments from out-of-state retailers.

Cydney Milling, Deputy Director of Tax Policy Services, confirmed that “this includes online sales shipped to SC by out-of-state retailers.” This provides an added benefit for shoppers who prefer to shop online or take advantage of deals from other states.

Additional Savings from Retailers

Many major retailers are offering additional discounts alongside the tax-free holiday. For example, Target is running promotions on clothing, shoes, and uniforms, with up to 25% off. This means that shoppers can combine tax-free savings with store discounts to maximize their savings.

A Special Experience for Families

For many families, back-to-school shopping is more than just a practical task—it’s a cherished tradition. Graham Holt shared his perspective on the experience, noting that he and his wife love the nostalgia of the season. They are making an effort to keep costs manageable by taking advantage of the tax-free holiday while still allowing their son to choose items he likes.

With careful planning and awareness of the tax-free rules, families can enjoy a stress-free shopping experience without breaking the bank. Whether shopping in-store or online, the tax-free holiday offers a valuable opportunity to save on essential school supplies and more.