ALABAMA'S BACK-TO-SCHOOL SALES TAX HOLIDAY 2022
Alabama Families, mark your calendars. Alabama's Sales Tax Holiday is
approaching soon so you can get your back-to-school shopping done for less.
Given the pressures inflation is exerting on all our budgets, Alabama's tax-free weekend can be a smart time to shop and save.
Alabama’s 17th annual sales tax holiday for school-related items begins at 12:01 a.m. Friday, July 15, 2022, and ends at midnight Sunday, July 17, 2022, giving shoppers the opportunity to purchase certain school supplies, computers, books and clothing free of the state’s four percent sales or use tax. Cities and counties were to notify the state that they would participate in the 2022 holiday by June 15 so check HERE to see if your city/county is participating so that you can save even more!
When: July 15 at 12:01 a.m. – July 17 at midnight. What’s Tax Free: Clothing $100 or less per item; computers $750 or less; school supplies $50 or less per item; books $30 or less per book. These thresholds are per ITEM, not per cart. So, for example, that means you can load up your cart with more than $100 of clothing, and it’s all tax free as long as each item is $100 or less.
Fine print: Some items are restricted, including gaming systems, handbags, helmets, sport clothing and more.
Is there a limit on the number of qualifying items I can purchase during the Back-to-School Sales Tax Holiday?No. The exemption is based on the sales price of each item.
I will be purchasing various school supplies such as pens, pencils, and paper that sell for less than $15 each. If my total purchase is more than $15, do I have to pay sales tax? No. The tax exemption applies to each qualifying school supply item with a sales price of $15 or less, regardless of the number of qualifying items purchased. However, if an item sells for more than $15, tax is due on the selling price of that item.
If the selling price of a personal computer is more than $1,000, do I have to pay tax on the entire purchase? No. The tax exemption applies to the first $1,000 of the sales price of personal computers or personal computer-related accessories purchased for noncommercial home or personal use. You will only pay tax on the amount of the sales price over $1,000.
I’m planning to buy my child a computer for doing schoolwork, and I know that the first $1,000 of the purchase price is tax-exempt. Are computer accessories, such as cords, keyboards, and printers, tax-exempt as well? A wide range of computer accessories, including cords, keyboards, printers, and printer ink, are exempt from sales tax during the Back-to-School Sales Tax Holiday. To view the complete list, see The Alabama Department of Revenue.
Does the Back-to-School Sales Tax Holiday also apply to items I purchase online?Yes. Qualifying items purchased online are exempt when the order is accepted by the company during the sales tax holiday for immediate shipment, even if delivery is made after the sales tax holiday period.
What types of items are not exempt?
The 2022 Alabama Back-to-School Sales Tax Holiday does not apply to:
Any item of clothing selling for more than $60;
Any school supply item selling for more than $15;
Books that are not otherwise exempt;
Computers and computer-related accessories purchased for commercial purposes;
Rentals or leases of any eligible items;
Repairs or alterations of any eligible items; or
Sales of any eligible items in a theme park, entertainment complex, public lodging establishment, or airport. 7. I am planning to purchase a jacket for my daughter during the Back-to-School Sales Tax Holiday that costs $75. I know that items of clothing costing up to $60 will be tax-exempt; does this mean I will only have to pay sales tax on $15 of the price of the jacket? No. During the Back-to-School Tax Holiday, the tax exemption applies to items of clothing selling for $60 or less. If an item sells for more than $60, tax is due on the entire selling price.