Mark your calendars! The Texas Sales Tax Holiday for 2025 is set for August 8–10. During this three-day period, shoppers can purchase a variety of qualifying items without paying the 6.25% state sales tax, plus any local taxes.

What’s Tax-Free?

• Clothing and Footwear: Most items priced under $100 per piece.

• School Supplies: Items like backpacks, pens, and notebooks.

• Essential Goods: Certain protective equipment, diapers, and face masks.

A key tip to remember is that the $100 limit applies to each individual item, not the total transaction. Whether you shop in-store, online, or by phone, the purchase qualifies as long as the transaction is completed within the August 8-10 window.

Where Cryptocurrency Comes In

Texas tax law treats cryptocurrency purchases the same as those made with traditional cash or a credit card. This means if you buy an eligible item under $100 during the tax-free weekend and pay with Bitcoin, Ethereum, or any other digital currency, the purchase is still sales-tax free. The tax exemption is tied to the item, not the payment method, allowing you to seamlessly use your crypto for tax-free shopping.

How to Maximize Your Crypto Savings

• Shop Online: Look for online retailers that accept crypto via processors like BitPay or Coinbase Commerce. If their products qualify and they ship to Texas, you’ll still get the tax-free benefit.

• Plan Ahead: To ensure your payment is processed on time, complete your crypto transactions well before the August 10 deadline to avoid any network confirmation delays.

• Buy in Bulk: Take advantage of the per-item limit. You can buy multiple tax-free items in a single transaction, all paid for with crypto.

Important Caveats

• Capital Gains: While spending crypto can save you on sales tax, it may trigger a capital gains tax event if the value of your cryptocurrency has appreciated. This is an important detail to consider under IRS rules.

• Ineligible Purchases: You cannot buy cryptocurrency itself tax-free, as it is not a qualifying good. Non-eligible items like electronics, jewelry, and specialized sports equipment also remain fully taxable, regardless of the payment method.

This annual event provides a practical, real-world use case for cryptocurrency beyond just a speculative investment. By using digital assets for everyday shopping—especially during a tax holiday—shoppers contribute to the normalization of crypto commerce. For businesses, accepting crypto during this high-traffic period could be a powerful way to attract tech-savvy customers and grow their digital payment capabilities.