Sales Tax Holidays for Water-Efficient & ENERGY STAR® Items May 25-27

Published on May 21, 2024

Gardener holding mulch in hands

By Office of Communication

The Comptroller encourages all taxpayers to support Texas businesses while saving money on tax-free purchases of certain ENERGY STAR® energy-efficient products and of certain water-efficient and water-conserving products during the annual Texas Water-Efficient Products and ENERGY STAR Sales Tax Holiday. There is no limit on the number of qualifying items you can buy, and you do not need to give the seller an exemption certificate to buy items tax free.

The 2024 Sales Tax Holiday begins Saturday, May 25, and goes through midnight on Monday, May 27 (Memorial Day). 

Energy Star Qualifying Products

You can buy, rent or lease only the following ENERGY STAR®-labeled items tax free:

  • 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

Non-Qualifying Products

Examples of items that do not qualify and are taxable, even if they are ENERGY STAR®-labeled include:

  • Water heaters
  • Clothes dryers
  • Freezers
  • Stoves
  • Attic fans
  • Heat pumps
  • Wine refrigerators
  • Kegerators
  • Beverage chillers

WaterSense Products

During the holiday period, you can buy any product tax free that displays a WaterSense® label or logo. These items can be bought for either personal or business purposes.

Water-Conserving Products

You can also buy certain water-conserving products tax free during the holiday period.

Unlike WaterSense®-labeled items, these items are only exempt when you buy them for use at your residential property.

You can buy items tax free during the holiday that are used or planted for

  • conserving or retaining groundwater;
  • recharging water tables; or
  • decreasing ambient air temperature, and so limiting water evaporation.

Examples of items that qualify for the exemption include

  • a soaker or drip-irrigation hose
  • a moisture control for a sprinkler or irrigation system
  • mulch
  • a rain barrel or an alternative rain and moisture collection system
  • a permeable ground cover surface that allows water to reach underground basins, aquifers or water collection points
  • plants, trees and grasses
  • water-saving surfactants
  • soil and compost

Examples of items that do not qualify for the exemption include

  • construction/building materials
  • awnings and other items used to create shade
  • air conditioners*
  • ceiling fans*
  • sprinklers

*Certain air conditioners and ceiling fans can be bought tax free as part of the Energy Star Sales Tax Holiday during Memorial Day weekend.

Tagged as:
Back to top