People walk by Cutlers Compact Discs on Broadway in New Haven in 2011. Clothing and footwear across Connecticut will be tax free starting Sunday.

In the market for a new square-dancing outfit? Some back-to-school clothes or a new set of chef whites?

Shoppers will be able to save a few bucks at the end of the month when Connecticut’s annual tax-free week kicks off Aug. 21. The exemption covers most clothing and footwear items under $100 thanks to legislation passed in 2015.

It’s the second sales tax holiday of 2022. A similar tax holiday ran from April 10-16 but included some items — like sports uniforms and accessories like wallets — the normal tax holiday doesn’t.

The state posted a list of items included and excluded from the holiday on its site. Some items eligible include shoes (except for those with cleats), dresses and gowns, formal wear, rain gear, outerwear, everyday clothing items, hats, handkerchiefs, belts, employee uniforms and more. While tennis and golf outfits are on the included list, other sports outfits — riding gear, martial arts outfits and specialized shoes for bowling, dance and cycling — are not included.

“With this bipartisan action, we are taking steps to provide some relief to consumers as they face rising prices due to a number of international dynamics and market instability that go far beyond our state,” Gov. Ned Lamont said when the dual tax holidays were announced. “Connecticut is in a stronger fiscal position than ever before, and I am determined to use every tool available to provide relief for our residents.”

The tax break applies to items priced under $100, as they are normally sold. If a dress suit is normally sold as a unit with a single price tag for $160, it wouldn’t be eligible. But if it’s a jacket and pants, each with its own $80 price tag, it would qualify.

 Items over $100 that are reduced to less than $100 with a coupon or discount are also eligible for the tax break. Rebates do not count.

Rentals of qualifying items are also covered by the tax break. If the items are rented before the holiday but returned during it, taxes still apply. However, if the items are rented during the holiday but returned after, the tax would apply. 

A similar concept applies to layways and rainchecks. If you use a raincheck to purchase an item during the holiday, it can’t be taxed. But if you obtain the rain check during the holiday and purchase after, tax applies. Layaways placed during the tax-free week can’t be taxed, even on payments made after the holiday. But layaways placed before the holiday still have to pay taxes during it.

It's not just Connecticut retailers either. The tax holiday applies to any purchase made in Connecticut, even from mail-order, internet or phone sales.

The holiday ends Sat. Aug. 27. Tax-free week runs every year from the third Sunday in August until the following Saturday.