TRENTON, NJ—New Jersey residents preparing for the upcoming school year will face higher costs for supplies as Governor Phil Murphy has terminated the state’s annual back-to-school sales tax holiday. This move is part of the adjustments in the Fiscal Year 2025 budget aimed at reallocating funds to essential services such as education, healthcare, and public safety.
Factoring in the lost savings against the rising cost of school supplies due to rising inflation, this year’s back to school shopping will cost more than ever for New Jersey families.
Previously, the tax holiday provided relief from sales tax on essential items like computers, school supplies, and sports equipment. The cessation of this benefit, detailed in P.L. 2024, c. 19, requires sellers to resume collecting sales tax on all taxable purchases. Historical information about past tax holidays is available through the New Jersey state website.
For years, the tax holiday offered significant savings during a ten-day period, covering items up to $3,000. This financial aid was especially beneficial to families and educators gearing up for the new academic year. The decision to end this holiday has sparked a mixed response from the community, balancing the disappointment of increased costs against the recognition of the need for fiscal adjustments.
According to a recent study by Deloitte, the price of school supplies has increased by 23.7% since 2020. Even with some signs of inflation easing, the financial strain continues for many families. Deloitte’s findings reveal that 30% of parents feel their financial situation has worsened compared to 2022, and over half anticipate a weakening economy in the upcoming months.
This economic pressure is influencing spending habits, with 34% of parents indicating plans to delay non-essential purchases, an increase from 31% last year. The survey details expected spending in various categories: electronics lead at an average of $325.96, followed by clothing and accessories at $257.12, shoes at $166.59, and school supplies at $140.39. These figures highlight the ongoing challenges parents face as they prepare for the new school year amidst rising costs.