Tax-free weekend is upon us! What you need to know.

The 2022 Sales Tax Holiday began Friday morning just after midnight and extends through midnight on Saturday, July 30.

According to the Mississippi Sales Tax Holiday passed by legislators in 2009 and amended in 2019, sales tax is not due on the sale of articles of clothing,  footwear or school supplies if the sales price of a single item is less than $100.

How does the holiday apply to sets and items sold as a unit?

Items that are normally sold together, such as a pair of shoes or 2-piece outfit, must continue to be sold as a set or a single unit.  Articles cannot be priced and sold separately to qualify for the tax exemption.

When eligible items are normally sold with non-eligible items as a set, the full price is subject to sales tax if the value of the non-eligible item exceeds the eligible one(s).

What about discounted items and BOGO deals?

The amount of sales tax due depends on the price paid for each item.  For example, if a retailer advertises shoes for ‘buy one pair, get one half off’ with the first pair of shoes priced at $120 and the second pair half off, then sales tax is due on the first pair priced over the $100 threshold but the second pair would qualify.

Retailers can offer discounts and store coupons to reduce the price of eligible items in order to qualify for the exemption.  Manufacturers’ coupons, however, cannot be used to reduce the selling price of an item below the threshold.

Does the holiday apply to online purchases?

Yes! Sales of eligible items priced below the $100 threshold qualify as long as they are purchased and paid for during the Sales Tax Holiday.  This includes items ordered by mail, telephone or the internet.

What about refunds and exchanges?

Sales tax is not to be charged on items that are exchanged for the same item in a different size or color even if the exchange is made after the holiday.  However, if items are returned for a credit toward the purchase of a different item after the holiday concludes, sales tax will be applied to the newly purchased item.

For a list of eligible items, click here.