Americans face higher back-to-school costs. Here's what's pricier.

These 16 states are offering tax-free shopping days as back-to-school costs soar to over $800 per student Families across the United States are preparing for another financially challenging back-to-school season, with average costs rising to more than $800 per child. In response, 16 states have announced plans to offer tax-free shopping periods to help ease the burden on households. The decision comes as inflation continues to strain budgets, with many parents and students scrambling to find affordable options for school supplies and necessities. The latest data from The Century Foundation and Groundwork Collaborative reveals that the cost of a typical basket of school items, including notebooks, lunch boxes, and index cards, has increased by nearly 8% compared to last year. A typical school lunch has also become 11% more expensive, pushing overall family expenditures to around $4,000 per student. This includes approximately $175 spent on school-related items and $3,800 on packed lunches. The rise in costs reflects broader economic pressures, including higher gas prices and ongoing trade tensions that have impacted the availability and affordability of essential goods. According to Lindsay Owens, executive director of Groundwork Collaborative, the situation represents one of the largest financial challenges for American families. “It’s the second-biggest shopping event of the year after Christmas, and families are going to be facing a lot of pain this school year,” she said. Owens noted that higher gas prices have influenced food and clothing costs, while tariffs have significantly affected the pricing of school supplies. Most school supplies are imported, making them vulnerable to fluctuating international trade policies and energy costs. The impact of tariffs is evident in several major manufacturers. Newell Brands, which produces Sharpie pens, Elmer’s glue, and other classroom essentials, recently announced price increases to offset higher import duties. Similarly, Matteo Anversa, chief financial officer of Logitech, attributed a substantial portion of its U.S. price hikes to increased tariffs. Other companies, such as Acco Brands, which owns the Mead, Five Star, and Trapper Keeper lines, have also cited rising oil prices linked to regional conflicts as a key factor in their decisions to raise prices. The surge in school supply costs has prompted some parents to seek alternative solutions. A recent survey by Credit Karma found that 45% of parents anticipate taking on debt to cover back-to-school expenses. Meanwhile, half of all families plan to reduce other household spending to manage these costs. “Parents do what they can to try to get their kids to school with the essentials, so it’s not surprising folks are cutting back to make sure their kids have what they need,” Owens explained. With inflation slowing slightly to an annual rate of 3.5% in June, down from 4.2% in May, the economic landscape remains uncertain. However, gas prices have risen again in July due to renewed geopolitical tensions in the Middle East. These developments continue to affect both everyday expenses and the broader economy, adding to the pressure on families during the critical back-to-school period. As the shopping season approaches, the combination of state-level tax incentives and continued cost increases will shape how families navigate this challenging financial environment.