Tax holidays in Texas: Save on ENERGY STAR and water-efficient products May 23-25

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• 🔥 Quick Facts
• Understanding Texas’ ENERGY STAR Tax Holiday
• Complete List of Qualifying ENERGY STAR Products
• WaterSense Tax Holiday: Water-Efficient Products
• How Much Can Texas Shoppers Save?
• Long-Term Value Beyond Tax Savings
• Where to Find Qualifying Products and Plan Your Purchase
• Does This Holiday Apply to Online Orders and Future Purchases?
  • Sources

Texas’ annual Tax Holidays for energy-efficient and water-efficient products run this Memorial Day weekend—Saturday, May 23, through Monday, May 25, 2026. During this three-day period, shoppers across the state can purchase qualifying ENERGY STAR appliances and WaterSense-labeled products completely tax-free. The Texas Comptroller’s Office estimates consumers statewide will save approximately $15.7 million in combined state and local sales tax through these purchases, making this a significant opportunity for both homeowners and businesses upgrading their homes with efficient systems.

Understanding Texas’ ENERGY STAR Tax Holiday

The ENERGY STAR Sales Tax Holiday has become a cornerstone of Texas’ environmental and consumer-friendly policy framework. Unlike traditional tax-free weekends that focus on back-to-school clothing or emergency supplies, this specialized holiday targets home appliances and products that meet strict EPA efficiency standards. Products bearing the ENERGY STAR mark have been independently verified to consume significantly less energy than conventional appliances while maintaining full functionality, directly reducing household utility bills over time.

The three-day holiday window gives Texas consumers a concrete opportunity to upgrade aging, inefficient appliances without paying sales tax. For many households, purchasing a single high-efficiency air conditioner or refrigerator during this period represents hundreds of dollars in immediate tax savings—especially on larger items that fall within the price thresholds outlined by the state.

Complete List of Qualifying ENERGY STAR Products

The Texas Comptroller has approved a comprehensive range of home appliances for the tax holiday. The following products qualify for tax-free purchase during May 23-25:

Product Category	Price Cap / Notes
Air conditioners	$6,000 or less
Refrigerators	$2,000 or less
Ceiling fans	No price limit
LED light bulbs and fixtures	No price limit
Water heaters (ENERGY STAR)	No price limit
Clothes dryers	No price limit
Freezers	No price limit
Stoves	No price limit
Attic fans	No price limit
Heat pumps	No price limit
Wine coolers (ENERGY STAR certified)	No price limit

All items must display the official ENERGY STAR label or certification mark to qualify. Retailers and consumers alike should verify that products carry this mark before purchase to ensure the tax exemption applies at checkout.

WaterSense Tax Holiday: Water-Efficient Products

Running simultaneously with the ENERGY STAR holiday, the Water-Efficient Products Sales Tax Holiday covers any product displaying the WaterSense® label or logo. This program, certified by the EPA, targets fixtures and products that reduce water consumption while maintaining performance standards. For Texas shoppers, this extends the tax-free opportunity beyond energy to include essential water conservation upgrades.

Qualifying WaterSense products include: bathroom sink faucets, kitchen faucets, showerheads, toilets, urinals, sprinkler bodies, and irrigation controllers bearing the WaterSense certification. Homeowners upgrading bathrooms or kitchens can bundle water-efficiency improvements with energy-efficient appliances, maximizing both savings and sustainability gains. Recent market trends show growing consumer investment in efficiency upgrades as households recognize long-term utility bill reductions.

How Much Can Texas Shoppers Save?

Texas’ sales tax rate varies by location, ranging from the state minimum of 6.25% in some counties to 8.25% or higher in metropolitan areas. A hypothetical purchase breakdown shows the potential impact: a $2,000 ENERGY STAR refrigerator in Austin (which carries an 8.25% combined rate) would normally include $165 in sales tax—eliminated entirely during the holiday. Similarly, a $1,500 air conditioning installation avoids approximately $124 in taxes.

“Texans know the value of making smart investments in their homes. These tax holidays encourage consumers to upgrade to more efficient appliances and fixtures while supporting Texas businesses.”

— Texas Comptroller of Public Accounts, official statement on 2026 tax holidays

Long-Term Value Beyond Tax Savings

ENERGY STAR certified appliances deliver measurable operational cost reductions beyond the initial tax savings. According to the EPA, ENERGY STAR refrigerators consume approximately 15% less energy than non-certified models, translating into $15 to $20 annual savings per unit. Over a typical 15-year appliance lifespan, this compounds to $225-$300 in utility savings alone. Heat pump water heaters offer even greater efficiency gains—up to 50% energy reduction compared to traditional electric models.

WaterSense-labeled toilets reduce consumption from standard 5-7 gallons per flush to 1.28 gallons or less. For a four-person household averaging 14 flushes daily, this translates to $145 annual water and sewage savings. When combined with the tax holiday exemption, the economic case for upgrading becomes compelling for forward-thinking homeowners planning renovations during this weekend.

Where to Find Qualifying Products and Plan Your Purchase

While the Texas Comptroller’s Office does not mandate which retailers must participate, major home improvement stores, appliance retailers, and online merchants honor the tax exemption statewide. Consumers should verify ENERGY STAR and WaterSense certifications directly on product packaging or via the energystar.gov and epa.gov/watersense websites before purchasing. Some retailers may request proof of certification at checkout, so saving product documentation eliminates potential disputes.

For contractors and service providers, the Texas Comptroller permits separate contracts for labor and materials—meaning water heater or HVAC installation combined with ENERGY STAR product installation can structure material costs tax-free while charging normal labor rates. This distinction matters for larger renovation projects where installation costs influence overall budgets.

Does This Holiday Apply to Online Orders and Future Purchases?

Online retailers including Amazon and other major platforms honor Texas sales tax holidays, applying the exemption at checkout for deliveries to Texas addresses. Orders placed before Saturday, May 23 at midnight do not qualify, even if delivered during the holiday window. Consumers planning online purchases should place orders during the May 23-25 window to ensure tax exemption eligibility. Pre-orders or items with delayed delivery—even if ordered during the holiday—may not qualify at completion of the sale, so verification with the retailer is prudent.

Sources

• Texas Comptroller of Public Accounts — Official 2026 ENERGY STAR and Water-Efficient Products Sales Tax Holiday guidelines
• U.S. Environmental Protection Agency (EPA) — ENERGY STAR product standards and WaterSense certification requirements
• Texas Comptroller — Estimated $15.7 million in combined state and local tax savings for 2026 holiday period
• WFAA, Austin American-Statesman, Houston Public Media — Current coverage of May 2026 tax holiday specifics and product qualifying lists