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Texas Energy Star Sales Tax Holiday

  • May 8, 2013 | Gail Cole

 This type of energy saving clothes dryer is always tax exempt.

Memorial Day Weekend means honoring our fallen veterans. It means music festivals: the Northwest Folklife Festival in Seattle, the Belmont-Sheffield Music Festival in Chicago, and the Best of the Best International Music Festival in Miami. It means Carnaval in the San Francisco Mission District and Greek Fest in New Orleans. Memorial Day means slipping away for a long weekend, and barbecuing in the back yard with friends.

And this year in Texas, Memorial Day Weekend means an Energy Star Sales Tax Holiday.

It begins at 12:01 a.m. on Saturday, May 25 and it concludes Monday, May 27, at 11:59 p.m. During that time, the following Energy Star products will be exempt from Texas state and local sales and use taxes:

  • Air conditioners ($6,000 or less);
  • Ceiling fans;
  • Cloths washers;
  • Dehumidifiers;
  • Dishwashers;
  • Incandescent and fluorescent light bulbs;
  • Refrigerators ($2,000 or less); and
  • Programmable thermostats.

In order to qualify for the exemption, the above products must display the Energy Star logo.

Energy Star products meet the “strict energy efficiency guidelines” set by the U.S. Environmental Protection Agency and the U.S. Department of Energy.

The Energy Star Sales Tax Holiday is intended to encourage consumers to replace old, inefficient products with more energy efficient products. “There is no limit on the number of qualifying items one can purchase during this sales tax holiday….”

Remote Sales

Products may be purchased tax free online or through a catalog, provided that one of the following conditions is met:

  1. The items is paid for and delivered to the purchaser during the exemption period; or
  2. The purchaser orders and pays for the item and the retailer accepts the order during the exemption period for immediate shipment, even if delivery is made after the exemption period.


The exemption may also apply to layaway items, so long as one of the following conditions is met:

  1. Final payment on a layaway order is made and the consumer takes possession of the merchandise during the exemption period; or
  2. The order is made and placed in layaway during the exemption period, for immediate delivery upon full payment. The exemption applies even if full payment occurs after the exemption period.

Delivery and Installation

Charges for the delivery of tax exempt items, whether separately stated or not, also qualify for the sales tax exemption. Installation charges may or may not qualify for the exemption. Read the fine print at the Window on State Government.

How does your business handle sales tax holidays?

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.