More than half (55%) of back-to-school and college shoppers have already begun buying items for the upcoming school year in early July, according to a recent national survey.
However, 86% of consumers report they still have at least half of their purchases left to complete, according to the survey by the National Retail Federation and Prosper Insights & Analytics. The two top reasons consumers give for not finishing their school shopping are that they are waiting for the best deals (45%) or unsure what school supplies are needed (45%).
Families with children in elementary through high school plan to spend an average of $874.68 on clothing, shoes, school supplies and electronics. This is approximately $15 less than last year’s record of $890.07. College students and their families are expected to spend an average of $1,364.75 on items for the upcoming school year, in line with last year’s record of $1,366.95.
New Jersey has repealed the 10-day sales tax holiday on back-to school supplies that was previously offered in 2022 and 2023. During this 10-day period before Labor Day, students, parents and teachers did not have to pay 6.625% state sales tax on retail purchases of computers, school supplies, instructional materials and sports or recreational equipment.
It is estimated that parents and teachers would have collectively saved $35 million on back-to-school purchases if the sales tax holiday had been allowed to continue in 2024.
The same law signed that repealed the back-to-school sales tax holiday will also phase out the sales tax exemption for zero-emission vehicles purchases beginning in October 2024.
State officials estimate the two-year phase out of sales tax exemptions for EVs will grow tax collections by $75 million between October and July 2025 when the current fiscal year ends. In FY26, the repeal of the EV sales tax exemption is expected to generate $231 million for the state, according to the nonpartisan Office of Legislative Services.