Consumers facing inflation concerns and worries of future tariffs on products from Apple Inc (NASDAQ:AAPL) could be in for a surprise sale during July and August, thanks to annual state sales tax holidays in participating states.
What Happened: Each year, many states offer sales tax-free shopping periods for back-to-school items. While the list typically includes clothing, shoes and school supplies, some states offer the tax reprieve on electronics such as laptops, tablets and even iPhones from Apple.
While there are 17 states that offer sales tax holidays in July and August, only nine of them apply to products available from Apple, as reported by 9to5Mac.
Here are the states included, the dates of the tax-free holiday and what items are included:
- Alabama: July 18 to July 20, maximum price $750, computers and accessories
- Arkansas: Aug. 2 to Aug. 3, no maximum price, good on iPhones, iPads, Mac computers and more
- Massachusetts: Aug. 9 to Aug. 10, maximum price $2,000 one item, no total limit, good on all items
- New Mexico: July 25 to July 27, maximum price $1,000 for Mac/iPad, $500 for accessories
- Ohio: Aug. 1 to Aug. 14: maximum price $500 savings on one item, all items
- South Carolina: Aug. 1 to Aug. 3: no maximum price, good on all items
- Tennessee: July 25 to July 27, maximum price $1,500, good on computers and accessories
- Virginia: Aug. 1 to Aug. 3, maximum price $60 per item, good on some accessories
- West Virginia: Aug. 1 to Aug. 4, maximum price $500, good on iPads
Apple lists the sales tax holiday on its website and says the purchases can be made online and in-store. Local taxes may apply for some of the items purchased during the state sales tax holiday.
Here are the local and state tax rates for the participating states:
- Alabama: 9.44%
- Arkansas: 9.48%
- Massachusetts: 6.25%
- New Mexico: 7.67%
- Ohio: 7.30%
- South Carolina: 7.49%
- Tennessee: 9.61%
- Virginia: 5.77%
- West Virginia: 6.58%
Of the nine states that participate in the state sales tax reprieve and offer Apple products as an option, three are among the five highest states for local and sales taxes. Tennessee ranks second in the country, followed by Arkansas, which ranks third and Alabama, which ranks fifth.
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Why It's Important: Apple could see a boost in revenue in the U.S. during the July and August back-to-school months thanks to sales like these.
Apple reported revenue of $40.31 billion in the Americas segment in the second quarter. iPhone sales declined year-over-year, while Mac and iPad sales were up on a year-over-year basis.
For Apple, selling more devices to students can also set up revenue opportunities down the road for its growing Services business, which set a record of $26.65 billion in the second quarter.
The National Retail Federation estimates that the average K-12 shopper budgeted $875 last year and college student shoppers budgeted $1,365. An NRF survey found that 76% of shoppers expect higher prices on the back-to-school items they need for the 2025 school year.
"These tax-free events can help drive customers to stores, and result in increased sales because customers may purchase additional items that they were not shopping for that day," said Katherine Cullen, NRF vice president of industry and consumer insights.
Time will tell if Apple sees a greater impact from the state sales tax holiday than in recent years, given that higher costs could drive more consumers to shop during sales and periods of deals to help offset the increased costs of having kids in school.
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Photo: View Apart via Shutterstock
