Maryland’s annual Shop Maryland Tax-Free Week returns Sunday, August 9 through Saturday, August 15, giving shoppers a break from the state sales tax on qualifying clothing and footwear.
During the week, qualifying apparel and footwear priced at $100 or less per item will be exempt from Maryland’s 6% sales tax. The exemption is based on the price of each individual item, rather than the total purchase. That means shoppers can purchase multiple qualifying items totaling more than $100 and still receive the exemption, as long as each item is priced at $100 or less.
Examples of eligible items include shirts, sweaters, jeans, slacks, dresses, robes, underwear, belts, shoes and boots priced at $100 or less. Items costing more than $100 are fully taxable, rather than just the portion above $100.
Backpacks and bookbags receive a slightly different exemption. The first $40 of the purchase price is tax-free, with Maryland’s sales tax applying to any amount above $40. Most other accessories, including jewelry, watches, handbags, umbrellas, scarves, ties and headbands, remain taxable.
Online purchases can also qualify when eligible items are purchased during Tax-Free Week and meet the state’s requirements. Retailer discounts and coupons that reduce an item’s sales price to $100 or less can also make the item eligible, while manufacturer coupons generally do not affect the price used to determine eligibility.
Maryland designates the second Sunday of August through the following Saturday as Shop Maryland Tax-Free Week each year. This year’s theme focuses on savings for families, local businesses and communities across the state, with Marylanders encouraged to consider shopping at local retailers to support neighborhood businesses and jobs.
