Back to school supplies will cost more in New Jersey, here’s why

💲 Gov. Murphy has killed a tax free holiday

💲 Parents and teachers will spend more for school supplies

💲 The annual tax break was excluded from the current state budget

New Jersey parents and teachers will have spend more on back-to-school supplies this year.

Gov. Phil Murphy has killed an annual tax-free holiday that applied to the sales tax on school supplies, including athletic equipment and computers.

In 2023, Murphy touted the tax-free holiday as a way to help parents and teachers cope with inflation.

Then-Treasurer Elizabeth Maher Muoio said back-to-school often brought anxiety over the cost of school supplies. "This sales tax holiday will help hardworking parents and teachers across our state stretch their dollars a little further while restocking backpacks and classrooms," she said.

However, this year Murphy did not include the sales tax exemption in his budget and legislators may no attempt to renew it.

An analysis from the non-partisan Office of Legislative Services estimated the 10-day tax holiday cost the state up to $60 million in lost revenue.

The average family would have saved around $65 per student on back-to-school supplies if the sales tax was waived.

Savings could be greater if big ticket items like computers and sports equipment had to be purchased.

No tax-free holiday will cost New Jersey teachers

The lack of a sales tax holiday could hit teachers particularly hard as they are forced to spend more out-of-pocket to buy school supplies for their classrooms.

Many teachers spend upwards of one-thousand dollars per year on supplies.

The State Assembly has passed legislation (A3416) that would allow teachers to deduct up to two-thousand dollars per year on their state tax return for monies spent on school supplies.

The Senate has yet to schedule the bill for a full vote.

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