Texas Holds Sales Tax Holidays for Energy and Water-efficient Products

This Memorial Day weekend (May 26-28) marks a double sales tax holiday for Texas, highlighting both Energy Star and water-efficient products.

During the three-day sales tax holiday, Energy Star air conditioners priced at $6,000 or less, Energy Star refrigerators priced at $2,000 or less, and other qualified Energy Star products regardless of if you are buying, renting or leasing are tax-free. There is no limit on the number of qualifying items you can buy. Delivery, shipping, handling, and transportation charges by the seller, as well as charges for installing free-standing items are part of the item's sales price.

During the same time period, residents can buy certain water-efficient and water-conserving products tax-free. Like the Energy Star sales tax holiday, there is no limit on the number of qualifying items you can buy. Any WaterSense labeled or logoed items bought for either personal or business purposes are tax-free during this holiday. There are other qualified water-conserving products that are tax-exempt when you buy them for use at your residential property, used or planted for conserving or retaining groundwater, recharging water tables, or decreasing ambient air temperature (to assist in limiting water evaporation.) The tax-free items include, but are not limited to mulch, soil, compost, plants, trees grasses and rain barrels.

According to Texas Comptroller Glenn Hegar, “As of May 1, more than 60 percent of the state was in abnormally dry or drought conditions — and anyone who’s lived through a Texas summer knows the strain triple-digit temperatures can put on power grids. These two holidays are a perfect time to save on state and local sales taxes while upgrading outdated water systems or inefficient appliances.”

The Texas Comptroller's office estimates shoppers will save about $10.7 million in state and local sales tax during the Memorial Day weekend sales tax holidays.