While lawmakers argue about Texas property tax reform, Gov. Greg Abbott recently signed a Texas sales tax relief bill. Under the legislation, some essential baby care items and feminine hygiene products will become tax-exempt in Texas.
“Every penny does count for families in Texas, and they have to struggle between buying diapers and buying food sometimes,” said Texas Rep. Donna Howard (D-48) in a statement regarding a similar sales tax relief bill she sponsored last year. (That bill never became law.)
Texas joins several other states that have cut sales taxes for products considered essential for families.
Texas Sales Tax Relief Bill: What’s Included
Currently, shoppers can purchase groceries and prescription medications tax-free in Texas. Texans can also buy other essentials tax-free beginning September 1 when baby diapers, baby wipes, baby bottles, and maternity clothing will be exempt under the legislation. The sales tax relief bill also makes the following items tax-free in Texas.
- Nursing bras and nursing pads
- Adult diapers
- Women’s menstrual products (sanitary napkins, tampons, etc.)
- Wound care dressings (for example, sterile bandages)
Kiplinger previously reported on states’ efforts to eliminate sales tax on diapers and other essential items. At least fourteen other states have already permanently eliminated the tax on diapers. Efforts to eliminate sales tax on diapers and other essential items spiked during 2022 as inflation wreaked havoc across the U.S., and the number of states without a diaper tax continues to grow in 2023.
Texas Tax-Free Weekend
While the Texas sales tax relief bill won't become effective until September 1, shoppers can purchase some exempted items without paying sales tax as early as this August. That’s because the 2023 Texas Tax-Free Weekend (Texas Sales Tax Holiday) starts on August 11th and runs until midnight, August 13th.
- Texans can purchase baby diapers, baby clothing, and baby bibs tax-free during the sales tax holiday.
- Shoes and undergarments will be tax-exempt in Texas during the tax-free weekend.
- Some school supplies qualify as tax-exempt during the Texas sales tax holiday (if the value is $100 or less).
Unfortunately, Texas doesn’t list feminine hygiene products as tax-exempt for the 2023 sales tax holiday. So, shoppers may need to wait until the Texas sales tax relief bill becomes effective in September to save on these items.
Texas Tax Changes in 2023
While Texans eagerly await whatever property tax relief Texas lawmakers agree to and for the new sales tax exemptions to become effective, other Texas 2023 tax changes have already taken effect. For example, Texas’ new tax on electric vehicles means that Texans who buy or drive Evs in the state will soon see much higher registration fees.
