Back-to-School Tax Breaks and Money Moves to Ease Financial Pressure

As the new school year begins, many households are dealing with increased expenses.

Some states are offering a little relief in the form of tax holidays, while several other mid-year tax changes are also worth a closer look.

Sales tax holidays offer real savings

Think of these holidays as temporary discounts courtesy of your state government. During designated periods, often on weekends, states waive or reduce sales tax on specific items. Most focus on back-to-school supplies, though Florida goes bigger with breaks on additional goods and services. Check your state’s official website or sign up for local tax alerts to stay informed about exact dates and eligible items.

The timing couldn’t be better. According to the National Retail Federation, 67% of back-to-school shoppers had already started buying supplies by early July 2025. That’s up from 55% last year, marking the highest early shopping rate since tracking began in 2018.

Just over half of families are shopping earlier because they’re worried prices might rise due to tariffs. Electronics, which many college students need, are particularly vulnerable to these potential increases. Maximize your tax-free shopping strategy

Strategic planning multiplies your savings

Now that you know your state’s tax holiday dates, focus on how to take full advantage. Not all items are included. School supplies like notebooks and backpacks typically qualify, but that new gaming laptop might not.

You can boost your savings by combining the tax break with store promotions. On a $100 backpack in a state with 7% sales tax, you save $7 automatically. Add a 20% store coupon and you’ve saved $27 in total.

Make a master list ahead of time. Include clothing sizes, specific school requirements, and any big-ticket items like computers or calculators. Planning now helps you avoid scrambling when the holiday begins.

Critical tax moves to make mid-year

When the kids are back in school, it’s the perfect time to pause and take stock of your finances. A quick mid-year tax checkup can help you catch issues early and make smart adjustments while there’s still time. Catching issues now is far easier than scrambling in December.

Start with retirement accounts. Choosing between Roth and traditional IRAs is more than an academic exercise. It directly impacts your retirement income, tax burden, and what you can leave to heirs or charities.

For the more than 700,000 Americans receiving Social Security benefits overseas, changes loom. The Social Security Administration plans to add an extra security step starting August 18. Callers will need to go online first for a one-time code before accessing services like benefit verification letters or tax statements. The AARP is fighting this, noting one in four older adults never go online.

SALT deduction changes could affect your next return

If you live in a high-tax state and itemize your deductions, there’s news worth noting. The new One Big Beautiful Bill Act raised the cap on state and local tax (SALT) deductions from $10,000 to $40,000, opening the door to substantial savings for many taxpayers.

However, there’s a catch for high earners. For those with incomes above $500,000, a phaseout applies. That can push effective marginal tax rates close to 46%, even though the top brackets officially sit at 35% or 37%. Some financial advisors are even suggesting that top clients reduce their income to stay below the threshold.

Your mid-year money checklist

A little planning now can help you avoid overspending later. Here’s what to focus on:

Back-to-school shopping priorities:

• Confirm your state’s tax holiday dates and qualifying items.
• Create a detailed list with sizes, supply needs, and big-ticket items.
• Compare regular store sales with tax-free periods.
• Build a custom budget and track spending with the Origin app. 7-day free trial.
• Time large purchases around expected savings windows.

Tax checkup essentials:

• Review your withholdings to avoid surprises next spring.
• Make sure you’re maximizing retirement contributions.
• Check whether the new SALT deduction cap affects your situation.
• Prepare for Social Security phone access changes starting August 18.
• Keep receipts organized for possible deductions or verification.
• Earn as much as possible on your emergency savings. SoFi Checking pays a competitive APY on savings, plus a cash bonus for new members who set up direct deposit. (May change without notice.)

Small steps now can lead to meaningful savings. Whether you’re shopping with purpose or making financial adjustments, a well-timed check-in helps you stay in control.