Sales Tax Holidays
In this article
How to handle Sales Tax Holidays in TaxJar?
The TaxJar API currently supports most Sales Tax Holidays!
Many states have detailed conditions on their Sales Tax Holidays and you can find a comprehensive list of states which participate here: 2020 Sales Tax Holidays.
Which Sales Tax Holidays are not supported in TaxJar?
We are currently working on supporting all Sales Tax Holidays.
- If you have nexus in Massachusetts, we have limited support for the sales tax holiday occurring during the weekend of August 29-30, 2020.
- If you have nexus in Virginia, please contact Support for more information as the sales tax holiday of August 2-9, 2020 has already passed.
- If you have nexus in Louisiana, please note that we currently do not support the latest sales tax holiday that provides relief for up to the first $2500 of purchases made on November 20-21, 2020.
- If you are applying Product Tax Codes to designate specific clothing items, Back to School holidays may not support this granular categorization.
TaxJar Product Tax Codes that will be covered by this holiday are 81100 ( Books), 81110 ( Textbook), 81120 ( Religious books), and40020 ( Supplements). Note: P roducts with year-round exemptions in MA are still exempt.
TaxJar will not be able to support the increased exemption threshold of $2,500 during the holiday for other product categories.
It is important to note that this holiday solely applies to the state-level; local sales are still fully taxable.
Please contact Support if you have any further questions.
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 2020?
You can find a comprehensive list of states which participate here: 2020 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.