Fun fact: The LiftEngine offices are located in New York, a state where there is a 4% tax on clothing purchases. However, we are also located less than 30 minutes away from Connecticut, a state that has a near 7% clothing tax, and just over the border of New Jersey, a state that has no clothing tax.
Sales tax rates can vary drastically by state, and in states like Alabama and Arkansas, where sales tax rates near 10%, it can really have an impact on shopping behavior. This is where Sales Tax Holidays come in.
Often timed in conjunction with the back-to-school season, sales tax holidays are periods of the year where a state's sales taxes are temporarily lowered or lifted. The extent of the discounts, dates, and shopping categories that these holidays apply to are dependent on the state (and, sometimes, even the districts within the state).
With many of these back-to-school sales tax holidays happening this summer, consider tying these into your digital marketing plan for the rest of the season. It can be as simple as running a campaign parallel to your main plan, specifically to these individual states around the time of their sales tax holidays.
To help you out with your planning, we’ve made this infographic with the summer sales holidays by state, date, and sales category.