Sales Tax Free Week Starts Sunday
It’s August, which means Connecticut’s annual “Tax-Free Week” is just around the corner.
The annual sales tax holiday week — during which most individual clothing and footwear items costing less than $100 are exempt from state sales tax — will run from Aug. 21-27.
This is the 16th consecutive year in which the state has held the tax holiday week, which always coincides with back-to-school shopping.
“The tax holiday has become a staple of Connecticut’s back-to-school shopping season,” Department of Revenue Services Commissioner Kevin Sullivan said in a statement. “Many retailers schedule sales to coincide with sales tax-free week, which helps shoppers save even more money because sales tax is applied after the use of any coupons or discounts.”
If an item typically costs more than $100 but is on sale for less than $100, it becomes tax-free during the week, he said.
“We hope everyone will take the opportunity to make their shopping dollars go farther and give a boost to our state’s economy,” Sullivan said.
The tradition of tax-free week has endured in Connecticut, even in times like this when the state grapples with a budget shortfall. This year, DRS expects the state to forego roughly $4.5 million in Sales and Use Tax revenue during the tax holiday week.
Over the years, the week has proven popular among consumers and retailers alike, Sullivan said.
Nationwide, 18 states are holding tax-free weeks or weekends sometime in 2016.
Many individual clothing and footwear items that cost less than $100 will be tax-exempt, but some items will still be taxed. Jewelry, sports uniforms, wallets and handbags are among things will still be taxable, even if they cost less than $100.
Connecticut’s sales and use tax is 6.35 percent.
More information about items that will and won’t be tax-exempt, as well as the use of coupons and exchanges during the tax holiday, can be found at DRS’ website, ct.gov/drs.