Indiana Parents Can Save on Back-to-School Shopping in Tennessee

A short road trip could save Indiana parents some cash when it comes to back-to-school shopping.

Does Indiana Have a Back-to-School Tax Holiday?

While there are several states that offer "tax-free" days, allowing parents the opportunity to get their kids ready to head back to the classroom, Indiana is not one of them. Fortunately, for those of us in Southern Indiana, we are only a couple of hours away from a state that does.

Nashville, Tennessee, is a short drive from the Evansville area, and each summer, Tennessee waives its sales tax to help parents prepare for the upcoming school season. The "sales tax holiday" allows parents to get their kids ready without paying taxes on their purchases.

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How the Tennessee Tax-Free Holiday Works

Both Indiana and Tennessee impose a 7% sales tax on goods and services. That means for every $100 in clothes, shoes, and school supplies, parents pay an additional $7 in taxes. If you're stocking up for the school year, shopping the "sales tax holiday" in Tennessee could save you some serious money, especially if you need to buy your student a new laptop.

In Tennessee, the sales tax holiday means you don't pay that 7% sales tax on clothes, shoes, school supplies, or even laptops and tablet computers. Of course, as with most things in life, there are some rules and restrictions.

 What You Can Buy Tax-Free in Tennessee

The sales tax holiday in Tennessee applies to shirts, pants, socks, shoes, and dresses that cost $100 or less per item. School supplies like binders, backpacks, pens, and pencils, as well as art supplies like clay, glazes, artist paint brushes, and paints, are all included as long as they are $100 or less.

If your student needs a new computer or laptop, the Tennessee sales tax holiday includes "Computers for personal use with a purchase price of $1,500 or less," and "Laptop computers, if priced at $1,500 or less, also qualify as well as tablet computers"

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What’s Not Included in Tennessee’s Tax Holiday

So what's not included? Any clothes, shoes, or school supplies that are priced at more than $100. Jewelry, handbags, and sports equipment are also not included in the holiday. Other electronics like flash drives, printer supplies, and software are not included either.

When Is Tennessee’s Sales Tax Holiday?

The Tennessee sales tax holiday will begin at 12:01 am on Friday, July 25, 2025, and will end at 11:59 pm on Sunday, July 27, 2025.

Is It Worth the Drive from Indiana?

So while Indiana does not participate in a program like this, it could be worth it for Hoosier parents to make the drive to Nashville to do their back-to-school shopping, especially if you have more than one kiddo or are needing some of higher ticket items like a new laptop.

Find out more about the Tennessee sales tax holiday by visiting the Tennessee Department of Revenue website.