Every year, a handful of states offer shoppers a temporary tax break to encourage spending. This year, some of those “sales tax holidays” are happening as President Donald Trump’s tariffs threaten to hike prices.
These holidays waive state sales tax (and sometimes local levies) on certain purchases for a set period. While eligible items vary by state, many include categories like back-to-school shopping or supplies for disaster preparedness.
“Sales tax holidays are politically popular because everyone likes tax relief,” said Katherine Loughead, a senior policy analyst and research manager with the Center for State Tax Policy at the Tax Foundation, where she has researched the topic.
But “it’s not as good a deal” as policymakers and consumers expect, she said.
Trump tariffs make investing ‘tricky,’ expert says
