For 2020 only, the Tennessee General Assembly has approved two separate sales tax holiday weekends. During these weekends, certain goods may be purchased tax free.
“The COVID-19 pandemic has caused immense economic strain on Tennessee families. These sales tax holidays will allow them to keep more of their hard-earned money and support Tennessee businesses,” Tennessee Gov. Bill Lee said in a press release.
The first tax-free holiday weekend focuses on clothing and other back-to-school items. It begins at 12:01 a.m. on Friday, July 31 and ends Sunday, August 2 at 11:59 p.m. During this time, clothing, school supplies, and computers and other qualifying electronic devices may be purchased tax-free. Certain price restrictions apply.
Exempt items sold online are also eligible. Items must be purchased for personal use, not for business or trade.
Clothing
Exempt:
- General apparel that costs $200 or less per item, such as shirts, pants, socks, shoes, dresses, etc.
Not exempt:
- Apparel items priced at more than $200
- Items sold together, such as shoes, cannot be split up to stay beneath the $200 maximum
- Items such as jewelry, handbags, or sports and recreational equipment
School Supplies
Exempt:
- School and art supplies with a purchase price of $200 or less per item, such as binders, books, backpacks, crayons, paper, pens, pencils, and rulers, and art supplies such as glazes, clay, paints, drawing pads, and artist paintbrushes
Not exempt:
- School and art supplies individually priced at more than $200
- Items that are normally sold together cannot be split up to stay beneath the $200 maximum
Computers & Other Electronics
Exempt:
- Computers for personal use with a purchase price of $3,000 or less
- Tablets, smart phones and electronic readers with a purchase price of $3,000 or less
- Televisions and video game consoles with a purchase price of $3,000 or less
Not exempt:
- Storage media, like flash drives and compact discs
- Individually purchased software
- Printer supplies
- Household appliances
The second tax-free holiday weekend focuses on restaurant sales.It begins at 12:01 a.m. on August 7 and ends Sunday, August 9 at 11:59 p.m.During this time, the retail sale of food and drink by restaurants and limited service restaurants, as defined in Tenn. Code Ann. § 57-4-102, is exempt from sales tax.
