For one week, Maryland shoppers can buy certain items without paying the state’s 6% sales tax.
From Aug. 9 through Aug. 15, Maryland’s annual ‘Shop Maryland Tax-Free Week’, allows consumers to purchase qualifying clothing and footwear priced at $100 or less per item tax-free. The first $40 of the purchase price of a backpack or bookbag is also exempt from sales tax.
The annual tax holiday is intended to help families save money ahead of the new school year while encouraging shoppers to support local retailers.
“With prices on food, gas, and utilities at levels that are hard for many families to absorb, anything we can do to make it easier for parents with school-age children is positive.” said County Executive Marc Elrich to MCM News.
The tax-free week comes just weeks before classes begin in Montgomery County, when many families are shopping for back-to-school essentials.
What’s Tax-Free
- Clothing priced at $100 or less per item
- Footwear priced at $100 or less per item
- The first $40 of a backpack or bookbag purchase
What’s Not Tax-Free
- Clothing or footwear priced over $100 per item
- Accessories such as belts, handbags, jewelry, watches, ties and scarves
- Protective clothing and footwear
- Fabric, thread, zippers and other sewing materials
- Clothing alterations
- School supplies and electronics
Things to Know
- The $100 limit applies to each individual item, not the total purchase.
- Eligible online purchases may qualify for the exemption if they are purchased during the tax-free week and meet the state’s requirements.
- Store coupons that reduce an item’s price to $100 or less can make it eligible for the tax exemption. Manufacturer coupons, however, do not change an item’s taxable price and do not affect eligibility.
Unlike some other states, Maryland’s tax-free week does not include most school supplies, such as notebooks, pencils, binders, calculators or electronics.
