Sales Tax Holidays
In this article
How to handle Sales Tax Holidays in TaxJar?
The TaxJar API currently supports most Sales Tax Holidays! Please be sure to categorize your products so that your TaxJar Reports reflect the Sales Tax Holidays taxability changes.
Many states have detailed conditions on their Sales Tax Holidays and you can find a comprehensive list of states which participate here: 2021 Sales Tax Holidays.
Which Sales Tax Holidays are not supported in TaxJar?
We are currently working on supporting all Sales Tax Holidays. There may be unique situations specific to a state and its thresholds where we may offer partial support:
- Recently Florida introduced a new sales tax holiday called "Freedom Week" that runs from July 1, 2021 through July 7, 2021.
TaxJar supports the following product categories (API Documentation):
Portable Light Sources
Sunglasses - Non-RX
Clothing - Life vests or preservers
Bicycle Helmets - Adult
Clothing - Swim goggles
Food Storage Cooler
If you sell products not supported by our API and unknowingly collected sales tax on items that shouldn’t be taxed during Florida Freedom Week, the Florida Department of Revenue has advised sellers to remit that erroneously collected sales tax to the state as normal.
- If you are applying Product Tax Codes to designate specific clothing items, Back to School holidays may not support this granular categorization.
- Recently the Ketchikan Gateway Borough and City of Ketchikan, Alaska introduced a new sales tax holiday on October 9, 2021. Participation by vendors is optional for this sales tax holiday, and only applies to items that are delivered on the day of the holiday. TaxJar is unable to support this sales tax holiday on October 9 for our customers. Please note, while Alaska does not have state sales tax, the state recently introduced local sales tax.
If you have any questions regarding a specific state listed above, please contact support and provide the state name and the date range of the holiday in question.
What if I'm not using TaxJar for sales tax calculations?
If you sell via one of our official integrations that have their own sales tax collection functionality, you would need to confirm support for sales tax holidays directly with their support teams.
- Then, we recommend categorizing your products in order for your sales to be treated appropriately during the Sales Tax Holidays!
- For example, if you sell via Amazon, we know that Amazon honors sales tax holidays so it is important to ensure that your Product Tax Codes are set up correctly on Amazon.
Where can I find more information about sales tax holidays for 2021?
You can find a comprehensive list of states which participate here: 2021 Sales Tax Holidays.
Not all states hold sales tax holidays. Some are annual and recur under legislation, while others that are non-annual require legislation each year.
- We also list the states that do not participate in the Sales Tax Holidays.
What if I'm enrolled in AutoFile?
If your business uses AutoFile, TaxJar will apply the appropriate taxability for your supported sales tax holiday items!
- As a reminder, please be sure to categorize your products so that your Expected Sales Tax Due Report reflects the Sales Tax Holidays taxability changes.