By Bob Katzen

The House and Senate, on a voice vote without a roll call, approved a measure that would allow consumers to buy most products that cost under $2,500 on Saturday, August 8 and Sunday, August 9 without paying the state’s 6.25 percent sales tax. A 2018 state law, which made the sales tax holiday permanent, requires the Legislature to vote to set the dates of the holiday each year. The measure does not need the governor’s signature to become effective.

Supporters of the bill said the holiday, which has been in effect for many years, would boost retail sales and noted that consumers would save millions of dollars. They argued that the state’s sales tax revenue loss would be offset by increased revenue from the meals and gas tax revenue generated by shoppers on those two days. They noted that according to the Department of Revenue, the 2025 sales tax holiday generated $3.65 million in indirect tax revenues due to increased economic activity.

“At a time when many families and small businesses are facing real financial pressures, our tax-free weekend provides meaningful relief for consumers while supporting the local retailers that are so important to our communities,” said Sen. Nick Collins (D-South Boston), the Senate sponsor of the measure. “I am proud to sponsor the legislation establishing the 2026 tax-free weekend and look forward to another successful year of helping residents save money while driving business to Main Streets across the commonwealth.”

Some opponents of the measure said the state cannot afford the up to $30 million estimated revenue loss and argued that the holiday actually generates little additional revenue for stores because consumers typically buy the products even without the tax-free days. Others said that the Legislature should be looking at broader, deeper tax relief for individuals and businesses and not a tiny tax-free holiday. Some said that legislators should not vote for this tax holiday when they have not yet restored all the local aid, education and other important program cuts made over the past few years.