The Illinois Back to School Sales Tax Holiday is a great time to stock up on supplies needed for the upcoming school year. In Illinois, the sales tax holiday starts at 12:01 a.m. on Friday, August 5th and lasts through the close of business Sunday, August 14th. During this period, qualified purchases can be purchased at a reduced sales tax rate. The state’s portion of the sales tax (6.25%) is reduced to 1.25%.
What items are exempt from sales tax?
Below is a list of categories that qualify for Illinois’ sales tax holiday.
- Clothing – retail selling price must be less than $125 per item
- Footwear – retail selling price must be less than $125 per item
- School supplies – must be used by students in course of study
The Illinois Department of Revenue website has definitions for each qualifying category.
What items do not qualify?
There are several common items that do not qualify for the sales tax holiday, including:
- Clothing accessories
- Sports or recreational equipment
- Protective equipment
- Certain types of footwear (such as cleated athletic shoes, ski boots, ballet shoes, etc.
- School supplies – any item not used by students in course of study
- Art supplies
- Instructional material
- Computer and computer supplies
Which states does this apply to?
In 2021, sales tax holidays are recognized in 19 states, including Illinois. However, you do not have to be a resident of one of these states to benefit from the sales tax holiday. Sales tax holidays vary by state, so be sure to check your state’s dates and qualifications.
For rules involving special sales during the sales tax holiday, such as: coupons & discounts, bundled sales, splitting items, rain checks, exchanges, back orders and returns, visit the Illinois DOR’s website.
The Back to School Sales Tax Holiday is a great way for people to stock up on school supplies while getting a reduced sales tax. For more information on this holiday visit the Department of Revenue website and check out Missouri’s upcoming tax-free weekend savings as well.