Illinois parents hoping to purchase certain back-to-school items during a sales tax holiday will be disappointed this year.
In 2022, Illinois parents saw some financial relief during back-to-school season in August, thanks to a state law that reduced tax rates on qualifying school supplies, clothing and footwear.
That law, known to many as a "sales tax holiday," didn't occur in 2023 -- and it won't in 2024 either, according to state officials.
The 2022 sales tax holiday, which brought the tax rate down from 6.25% to 1.25%, began on Aug. 5 and ended on Aug. 14. Qualifying purchases included certain clothing and footwear with a retail selling price of less than $125 per item. Eligible school supplies items were not subject to the $125 threshold.
Though Illinois will not hold a sales tax holiday in 2024, many other states will, including Iowa, Florida, Missouri, Ohio, Texas and Tennessee, NerdWallet reported. Eligible items and maximum costs per item vary in each state, ranging from clothing and footwear to books, backpacks and computers.
According to the National Retail Federation, families with children in elementary through high school plan to spend an average of $874.68 on back-to-school shopping, in categories including clothing, shoes, school supplies and electronics.
While that amount is $15 less than last year's average of $890.07, the NRF said, it's also the second-highest amount on the sruvey's history.
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"Total back-to-school spending is expected to reach $38.8 billion, also the second-highest figure on record, after last year’s high of $41.5 billion," the NRF said.
College students and their families are expected to spend even more, with an average of $1,364.75 on items for the upcoming school year. Total back-to-college spending is expected to reach $86.6 billion, the second-highest figure in the history of the survey, the NRF said.
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While different from the sales tax holiday, Illinois has long offered an education expense credit on tax returns. Parents can receive a 25% tax credit on eligible back-to-school expenses exceeding $250 on their individual income tax returns. The total credit cannot exceed $750 - regardless of number of qualifying children.
