Maryland's tax-free week is back: What's on the list?

MARYLAND - It's time to shop smart as the state’s annual Shop Maryland Tax-Free Week returns. From Sunday, Aug. 10, through Saturday, Aug. 16, certain items of clothing, footwear and backpacks will be exempt from the state's sales and use tax.

What we know:

The tax holiday is designed to help residents save on back-to-school items and other clothing purchases. During the week-long event, Maryland’s 6% sales tax will be waived on clothing and footwear priced under $100, as well as the first $40 of any backpack purchase—regardless of how many items are bought. 

What's on the tax-free list?

Clothing and footwear that is $100 or less: Sweaters, shirts, slacks, jeans, dresses, robes, underwear, belts, shoes, and boots are all eligible. If a purchase includes multiple qualifying items that are individually priced at $100 or less, they are all exempt, even if the total purchase is over $100.

Backpacks and bookbags: The first $40 of the purchase price is tax-exempt. Any amount over $40 is taxable.

What's NOT on the list?

Items over $100: If an item of clothing or footwear costs more than $100, the entire price is taxable.

Accessories: Items like jewelry, watches, handbags, scarves, ties and umbrellas are not tax-exempt during tax-free week.

Protective clothing: Special clothing or footwear designed primarily for protective use, such as football pads, remains taxable.

Fabric and supplies: Items used to make or repair clothes, such as fabric, thread, buttons and zippers, are also subject to sales tax.

How the tax-free week works

The exemption applies to eligible items bought both in-store and online. For online orders to qualify, the item must be paid for and delivered during the tax-free period.

If you use a retailer's coupon to bring an item's price down to $100 or less, the item will qualify for the exemption. However, manufacturer's coupons, for which a third party reimburses the retailer, are subtracted after the tax is levied and do not affect the price for tax purposes.

"As costs continue to rise, shopping during the sales tax holiday is a great way to keep money in the pockets of hardworking Marylanders and help their budgets go further," said Comptroller Brooke Lierman, encouraging residents to shop locally and save.

Established by state law in 2007, the tax-free holiday is strategically timed ahead of the school year to help families prepare.

"Shop Tax-Free Week is more than a 6% discount," said Cailey Locklair, President of the Maryland Retailers Alliance. "It’s an opportunity to support local businesses, ease the financial burden on families, and invest in our communities." 

Frequently asked questions