The State of Texas wants you to conserve water, energy, and utility bill costs by waiving sales tax on several water- and energy-saving appliances on the ENERGY STAR and water-efficient products sales tax holiday.
During Memorial Day weekend, Texans can potentially save hundreds of dollars when purchasing, renting, or leasing qualifying appliances tax–free.
If you’re in the market for new appliances, look for the ENERGY STAR logo first. ENERGY STAR is a program of the US Environmental Protection Agency. Manufacturers voluntarily submit their products for independent testing, and products that are proven to save users money and energy can display the ENERGY STAR logo. Qualifying items include:
• air conditioners (with a sales price of $6,000 or less)
• refrigerators (with a sales price of $2,000 or less)
• ceiling fans
• incandescent and fluorescent light bulbs
• clothes washers
• dishwashers
• dehumidifiers
There are many items that bear the Energy Star logo that do NOT qualify for the tax holiday. Examples include: water heaters, clothes dryers, freezers, stoves, attic fans, heat pumps, and beverage chillers, to name a few. Be sure to check with a salesperson before assuming that your purchase will be tax-free.
If you’re replacing an existing appliance, there’s a good chance that you have no use for the old one. If the appliance still works, you can sell it on your own or donate it to a local organization. Larger organizations like Habitat for Humanity, Goodwill, Red Cross, and Salvation Army may provide pick-up service for large items if you are unable to move it on your own. Contact the local office for details in your area.
If the appliance no longer works and is beyond repair, check with your local waste disposal program before leaving it by the curb. They will have the best guidance for dropping off or having an appliance picked up for recycling to avoid adding to a landfill.
During the tax holiday, any product that displays a WaterSense label or logo can be purchased tax free. This includes items like toilets, showerheads, and faucets that meet the EPA's specifications for water efficiency and performance.
Additionally, many water-conserving products can also be purchased tax free during the holiday. Examples of qualifying items include:
There are certain water-conserving products that do not qualify for the exemption, including sprinklers. Visit the Texas Comptroller for a full list of qualifying items.
