Connecticut exempts school supplies, expands sales tax holiday

Nonelectronic school supplies are exempt from Connecticut sales and use tax starting July 1, 2026, due to the enactment of Substitute Senate Bill 1. The legislation also increases Connecticut’s sales tax holiday price threshold from $100 to $300 and adds backpacks and cleated shoes to the list of eligible items.

• Connecticut will exempt nonelectronic school supplies from sales tax starting July 1, 2026. Eligible items include backpacks, lunch boxes, and notebooks.

• Connecticut’s 2026 tax-free week will include backpacks and cleated shoes. The state also increased the sales tax holiday price threshold from $100 to $300 per item.

• Businesses can use automation to keep up with changing sales tax holiday exemptions. Avalara Tax Research uses an AI-powered tax research assistant to provide clear, concise answers to your tax questions and help you access regularly updated tax rules and regulations.

Effective July 1, 2026, Connecticut Public Act No. 26–68 establishes a sale and use tax exemption for nonelectronic school supplies such as backpacks, crayons, lunch boxes, notebooks, paper, pens and pencils, and rulers.

Public Act No. 26–68 also makes three changes to the Connecticut sales tax holiday. It increases the price cap from $100 to $300, and it adds “cleated shoes” and “any backpack” to the list of eligible products.

This isn’t the first time Connecticut has had such a high sales tax holiday price cap. It was $300 between July 1, 2004, and June 30, 2015, when the Legislature reduced it to $100.

You’ll notice that “backpacks” qualifying as nonelectronic school supplies are sales tax exempt starting July 1, 2026, while “all backpacks” priced under $300 qualify for the sales tax holiday. Perhaps the Connecticut Department of Revenue Services will publish guidance addressing this issue.

Connecticut’s tax-free week takes place annually, running from the third Sunday in August until the “Saturday next succeeding.” The changes established under Public Act No. 26–68 will apply starting with the 2026 tax-free week. 

In 2026, there are sales tax holidays in 22 states, Puerto Rico, and at least one local jurisdiction in Alaska. Several other states introduced bills to create new sales tax holidays. We’re updating our 2026 sales tax holidays blog as new policies emerge.

Businesses that subscribe to Avalara Tax Research can also use the AI-powered tax research assistant to keep up with new and changing sales tax holidays. “The AI-powered search in Avalara Tax Research has been a game changer, cutting my research time by more than 80%,” says Dakota Cox, Accounts Payable at Averitt Express.

Staying on top of sales tax changes is challenging. In 2025, there were 417,110 taxability updates across the U.S. and Canada and 121,600 U.S. sales tax holiday rule updates. Learn how Avalara Agentic Tax and Compliance™ is helping retailers simplify sales tax compliance.

When is the Connecticut sales tax holiday?

The Connecticut tax-free week takes place each year from the third Sunday in August through the following Saturday. For 2026, it will run from August 16 through 22.

How many states have a sales tax holiday in 2026?

In 2026, there are sales tax holidays in 22 states plus Puerto Rico and at least one locality in Alaska. See our sales tax holiday blog post for details. 

What school supplies are exempt from Connecticut sales tax starting in 2026?

Effective July 1, 2026, nonelectronic school supplies such as backpacks, crayons, lunch boxes, and notebooks are sales tax exempt.