(The Center Square) – Tennessee parents purchasing school supplies and clothing for their children will get a break on the sales tax beginning July 31.
Clothing and school supplies $100 or less, and computers $1,500 or less, will be tax-free through Aug. 2 at 11:59 p.m.
“Tennessee’s sales tax holiday has become a back-to-school tradition for families,” Revenue Commissioner David Gerregano said in a statement.
Tennessee’s sales taxes are the second-highest in the country for both the state rate and the combined state/local rate, according to the Tax Foundation, a nonpartisan tax-policy nonprofit. The state’s sales tax is 7%, second behind California’s 7.25%.
Local governments can charge up to 2.75%, resulting in a combined state rate of 9.61%.
Only Louisiana has a higher combined rate of 10.13%, which is the state’s 5% sales tax rate combined with local sales tax rates of up to 7%.
Tennessee has offered the back-to-school sales tax holiday for two decades, according to a release from the Tennessee Department of Revenue.
“Tennessee’s strong track record of fiscal stewardship has allowed our state to cut taxes and put dollars back in the pocket of hardworking Tennesseans,” said Gov. Bill Lee. “I encourage every family to take advantage of back-to-school savings, and thank the General Assembly for their partnership to provide direct financial relief for taxpayers.”
Some items are exempt. They include jewelry, handbags, printing supplies, software and appliances, according to the Revenue Department.
