Texas waives sales tax on select school items under $100 from August 8–10, but exclusions and shipping costs still apply
Texans are gearing up for one of the busiest shopping weekends of the year. From August 8 to August 10, 2025, the state’s annual Tax Free Weekend gives residents a break from the usual 6.25% state sales tax, with potential total savings reaching 8.25% when including local taxes on a wide range of back-to-school essentials and clothing items.
The sales tax holiday kicks off on Friday and runs through midnight on Sunday. It covers purchases made not only in stores but also online, by mail, or over the phone.
“For example, if you pay for an $80 shirt that must be special ordered or is on back order, and you pick up the shirt after the sales tax holiday, then it still qualifies for the exemption,” clarifies the Texas Comptroller’s office.
The tax exemption applies to most clothing, footwear, backpacks (for elementary and secondary school use), and school supplies, each priced under $100. This includes T-shirts, jeans, shoes, pajamas, writing tablets, baby diapers, lunch boxes, pens, and calculators. Diapers, both cloth and disposable, are also included.
There is no limit on the number of qualifying items you can purchase, so long as each item stays below the $100 price point. The exemption is applied automatically at checkout; no paperwork or coupons needed.
Despite the broad range of eligible goods, there are notable exclusions. These include jewelry, watches, handbags, wallets, umbrellas, luggage, sporting equipment, and clothing or footwear designed specifically for athletic or protective use (e.g., golf cleats or football pads). Rentals, alterations, and cleaning services also remain taxable during this period.
Additionally, electronics and school tech like computers, tablets, software, and textbooks aren’t part of this holiday — though some of these items may fall under separate tax-free events held later in the year.
A key caveat this year is how delivery and handling fees impact eligibility. If an item costs $95 but comes with a $10 shipping fee, the total price hits $105, making it ineligible for tax exemption. This is because, as the Comptroller’s office notes, “shipping, handling, and transportation charges are included in the item’s price for sales tax purposes”.
In cases where both exempt and non-exempt items are included in the same invoice with delivery billed per item, only the shipping cost for qualifying goods is exempt.
The Tax-Free Weekend tends to bring out crowds, especially at major retailers. “Outlets such as Walmart have created their lists of qualifying items for easy browsing,” one report advises.
And if you’re ordering online, remember, payment must be processed before midnight on August 10. If your credit card is declined at 11:00 p.m. and you fix it on August 11, the purchase becomes taxable, even if the item was in your cart during the tax-free window.
Remember to check receipts carefully and know that Texas offers other tax holidays later in the year for emergency supplies and energy-efficient appliances.