The back-to-school sales tax holiday season is upon us. As is customary, we’ve compiled a list of states offering sales tax holidays for paper, pencils, backpacks, clothing and other school supplies. Find out if your state is participating and/or has already released details.

How sales tax holidays work
Generally, many states offer a sales tax exemption by product and up to a certain amount. For instance, Florida offers a sales tax holiday for clothing and footwear that are less than $100. Please also note that even though state sales tax may be temporarily dropped, local sales tax may still be in effect at the city level. Having said that, North Carolina no longer offers a sales tax holiday because its legislators repealed it as of July 1.

Each state has its own rules about which items are exempt as well as price limits for items. Be sure you understand eligibility guidelines before you hit stores. As well, a few states allow localities to decide whether they want to participate in the sales-tax holiday. To find out which states will have sales-tax holidays and what will be exempt from taxes, see the list below.

Consumers should be wary of base price increases
Some businesses take advantage of consumers by raising prices to a level at or near the price before the sales tax holiday. For instance, rather than passing the sales tax savings onto the customer when a certain item like a back-pack is in high demand, they’ll actually raise prices to the equivalent of what it would have cost if there was not a sales tax holiday.

States                 2014 Dates            Max. Cost Per School Item
Alabama              Aug. 1-3                   $750 computers; clothing $100; supplies $50; books $30

Arkansas             Aug. 2-3                    <$100 clothing & footwear; $30 clothing accessories

Connecticut         Aug. 17-23                  <$300 clothing & footwear

Florida                Aug. 1-3                     $100 clothing; $15 school supplies

Georgia               Aug. 1-2                     $100 clothing; computers & accessories $1K; supplies $20

Iowa                 Aug. 1-2                     <$100 clothing and footwear

Louisiana            Aug. 1-2                     $2,500

Maryland            Aug. 10-16                 $100 clothing and footwear

Mississippi           July 25-26                  <$100* clothing and footwear

Missouri              Aug. 1-3                    $100 clothing & footwear; computers up to $3,500

New Mexico        Aug. 1-3                     <$100 clothing and footwear; <$30 supplies; computers $1K

Oklahoma        Aug. 1-3                     <$100 clothing and footwear;

South Carolina    Aug. 1-3                     Unlimited

Tennessee          Aug. 1-3                      $100 clothing; $1,500 computers; $100 school supplies

Texas                 Aug. 8-10                   <$100 clothing, footwear and backpacks

Virginia               Aug. 1-3                     $100 clothing and footwear; $20 school supplies

*:These states have provide a sales tax holiday for only clothes and not school specific supplies as compared to the other states listed.

More questions? Browse answers or ask sales tax questions online.

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