Back-to-school tax break starts today

The 10-day tax holiday for back-to-school shopping starts today.

Why it matters: The state, which introduced the holiday earlier this year to help Illinoisans afford supplies amid rising inflation, estimates it will save families $50 million.

Context: Gov. J.B. Pritzker added the tax holiday to his 2022-2023 budget along with other measures, like suspending the gas tax increase.

Details: It's not a tax freeze. The state sales tax will be lowered from 6.25% to 1.25% through Aug. 14 on most back-to-school items, including:

• 👟 Shoes
• 👖 Shorts, pants and dresses
• ✏️ Various school supplies

Yes, but: Individual items must cost under $125 to get the tax break. Some bigger items are excluded, like:

• 📱 Cellphones
• 💎 Jewelry
• ⚽️ Sports accessories

Zoom in: Local parents are spending an average of $886 per child on supplies this year, 34% more than the projected national average of $661.

The big picture: The tax break comes at a time when many Chicagoans are worried about their financial outlook. A new survey by Deloitte found that:

• 51% of local shoppers expect the economy to weaken in the next six months.
• 31% say their financial situation has worsened since last year.
• 58% are concerned about the increase in back-to-school prices due to inflation.

What they're saying: "We've seen a significant shift in parents' priorities this year, with mental health at top of mind," Matt Adams, a principal at Deloitte Consulting who specializes in retail, tells Axios. He notes that 46% of parents say they've "purchased products or services to address this issue for the coming school year."