New Jersey will have a state sales tax holiday for back-to-school supplies from Aug. 26 to Sept. 4
But how many other states in the nation offer temporary sales tax holidays during the course of a year?
According to an updated report from the Tax Foundation, New Jersey is one of 18 states that will hold a sales tax holiday in 2023, up from 17 in 2022.
The report notes, however, that number is down slightly from a peak of 19 in 2010.
“Proponents argue that sales tax holidays promote economic growth,” wrote Tax Foundation author Manish Bhatt. “They posit that individuals will purchase more of the exempted goods than they would have in the absence of the holiday, and that they will also increase their consumption of nonexempt goods.
“However, the evidence (including a 2017 study by Federal Reserve researchers) shows that, instead of increasing purchases, consumers simply shift the timing of purchases they were already going to make. For most who shop during sales tax holidays, the exemptions simply provide a modest and unexpected benefit for doing something they would have done anyway.”
Other states in the region that also offer sales tax holidays are Massachusetts, Connecticut and Maryland.
To see the full U.S. map of states offering sales tax holidays, click here.
To get more information on New Jersey’s upcoming sales tax holiday, click here.