ALBUQUERQUE, N.M. – New Mexico’s tax-free weekend is underway, but families still face higher back-to-school costs with average school supplies about 8% more expensive.
Students across New Mexico, including in Albuquerque and Rio Rancho, return to school next week. Shoppers have until Sunday night to buy school supplies, clothes, electronics and other essentials without paying gross receipts taxes.
A recent analysis of national retail data found the average school supply list costs about 8% more this year. Families are expected to pay $175 more overall per child.
An analysis from Groundwork Collaborative found prices for one-subject notebooks are up 23%, scissors 14%, glue sticks 7%, number two pencils 6% and crayons 5%.
“If we do the math and we’re not paying those school taxes on that, we’re saving $70, $60, $80 per family on school supplies if they buy it all this weekend,” said Reilly White, a finance professor from the University of New Mexico.
The National Retail Federation estimates the average family will spend more than $860 on K-12 school supplies this year.
A Credit Karma survey found 45% of families expect to take on debt to pay for school supplies this year. Finance experts recommend making a budget, comparing prices and reusing items from last year when possible.
“I know your child looks at you with those bright eyes and there’s sparkle in their step and they say, look, you know, I really need this new thing. Learn to say no, and that’s the hardest thing,” said White.
Eligible items
Eligible tax-free items include:
- Clothing or shoes priced under $100
- Computers (including desktops, laptops, notebooks and tablets) priced up to $1,000 and computer accessories (including monitors, speakers, printers, keyboards, microphones and computer mice) priced up to $500
- General school supplies (including notebooks, paper, writing instruments, crayons, art supplies, rulers, staplers and staples, scissors and paper clips) priced under $30
- Backpacks, bookbags, maps and globes priced under $100
- Handheld calculators priced under $200
A full list of taxable and nontaxable items is available in FYI-203, Gross Receipts Tax Holiday.
