ALBUQUERQUE, N.M. (KRQE) – New Mexico is set to help students return to school with a tax-free weekend. It’s an event the state’s Taxation and Revenue Department calls “nothing short of a bonanza,” but not everything is tax-free. So how do our tax discounts compare to other states?

The Institute on Taxation and Economic Policy (ITEP), a non-profit and non-partisan organization that researches tax policy has compiled a list of each state’s tax holidays. And it shows that some states provide much more generous tax-free offerings.

In New Mexico, the tax-free weekend runs from 12:01 a.m. on August 5, 2022, to August 7, 2022, at midnight. During that period clothing and shoes priced at less than $100, computers priced at $1,000 or less, and general school supplies priced under $30 are all exempt from gross receipts tax, according to the Taxation and Revenue Department.

Gross receipts tax is the tax businesses have to pay (i.e. it’s not the sales tax consumers pay). New Mexico uses a gross receipts tax exemption because the state does not have a sales tax. But the idea is that businesses will pass on the savings to you.

But there are clearly limits in New Mexico. For example, a $2,000 computer does not qualify because it’s above the $1,000 limit.

Some states have much higher limits, though. New Jersey, for example, exempts sales tax on computers up to $3,000 according to ITEP. Arkansas has no limit on the price of computers exempted from sales tax during their holiday.

But New Mexico’s offerings are generally better than Ohio’s. Their clothing must be less than $75 to be exempt from sales tax. And computers, at any price, are not exempt. Similarly, Texas does not offer a tax break on computer purchases. Some states, like Colorado, don’t have a tax-exempt weekend at all.

Overall, New Mexico’s exemptions offer consumers statewide a chance to save some money on important purchases. The state’s Taxation and Revenue Department estimates that consumers will save around $4 million thanks to this year’s holiday.