From July 26 to 28, Tennessee shoppers can purchase certain clothing, school supplies and computers tax-free.
Tennessee’s current statewide sales tax is 7%, and many local jurisdictions collect an additional local tax of up to 2.46%. That means that shoppers can save as much as 9.46% in sales tax on qualifying purchases during the Tax-Free holiday. Read on to learn how you can shop back-to-school items without paying sales tax.
What’s included in Tennessee tax-free weekend?
Most clothing, school supplies, and computers are exempt from sales tax if the purchase price falls beneath a certain threshold. Pricing limits and examples of eligible products are listed below.
Clothing under $100.
This includes general apparel, uniforms, shoes and swimsuits.
School supplies under $100.
This includes backpacks, notebooks, textbooks and lunch boxes.
Computers under $1,500.
This includes desktops, laptops and tablets for personal use. This $1,500 threshold is much higher than in most states and, notably, would include some pricier laptops and tablets, such as Apple’s MacBook and iPad Pro.
See the full list of exempt items.
Note that Tennessee’s dollar limits work a bit differently from other states’. In some states, if an item is more expensive than the dollar limit, only the amount over that limit is taxed. However, in Tennessee, if an item’s price is above the limit (say you buy a piece of clothing that’s $120), the whole thing is taxed.
Products that are still taxable
Before filling your cart, keep in mind there are certain types of clothing accessories, school supplies, and electronics that do not qualify for tax exemption. The following products will remain taxable during Tax-Free Weekend:
- Jewelry, handbags and sports gear.
- Reference books, globes and maps.
- Video game consoles, cell phones and electronic readers.
- Computers purchased for business use.
See the full list of taxable items.
Does Tennessee tax-free weekend include online purchases?
Yes. You must, however, order and pay for the item during the tax-free holiday period.
If I use a coupon to lower the price of an item during tax-free weekend, does it become tax free?
That depends on the type of coupon used. If you use a manufacturer’s coupon that brings the price you pay below the threshold, you still have to pay tax. If, however, the store offers a discount that brings the price of the item down below the threshold, it’s tax free. So take advantage of store discounts during tax-free weekend.
Can items bought during Tennessee tax-free weekend be exchanged?
You will still be able to exchange eligible items for the same item in a different size or color after tax-free weekend is over.
If you have any questions, don’t hesitate to reach out.