The tax-free sales season is here again, and Maryland is actively participating. Unlike most states with tax-free weekends, Maryland usually dedicates a week to tax-free sales; this year is no exception.
The tax-free week in Maryland will commence on August 11 and last till August 17 to boost back-to-school shopping. The state will waive its usual 6% sales tax on certain clothing items and shoes. This annual event results from the legislation the Maryland General Assembly passed in 2007.
What is eligible for tax-free purchases?
During Tax-Free Week, the following items are eligible for exemption from Maryland’s 6% sales tax. Clothing, footwear, and accessories priced at $100 or less are eligible for the tax-free purchase. The tax-free accessories include;
- Sweaters
- Shirts
- Slacks
- Jeans
- Dresses
- Robes
- Underwear
- Belts
- Shoes
- Boots
The first $40 of a backpack/bookbag purchase is tax-exempt.
The Maryland General Assembly has only designated clothing, footwear, and backpacks/bookbags as eligible items for this August tax-free period.
Duration of Maryland Tax-free week
Maryland’s Tax-Free Week for 2024 will start on Sunday, August 11, and end on Saturday, August 17. This seven-day event provides a perfect opportunity for residents to save on their back-to-school shopping and other essentials.
Are online sales exempt?
An eligible item may qualify for the exemption if it is paid for by the customer and delivered during the tax-free period or if the customer orders and pays for it. The retailer accepts the order for immediate shipment, even if the item is delivered after the tax-free period ends.
Will clothing alterations be exempt during Shop Maryland week?
Alterations are taxable, even if you buy and pay for them while you buy a piece of clothing, exempt from the tax during the exempt period. For example, if you buy a pair of pants for $90 and pay $15 to have them altered, tax will be due on the alteration charge but not the pants.
Benefits for shoppers and local businesses
Savings on Essentials
The primary benefit of Tax-Free Week is the significant savings on essential items. With the cost of living rising and many families preparing for the new school year, this tax exemption helps ease the financial burden.
Support for Local Businesses
Tax-Free Week also boosts local economies by encouraging residents to shop at local retailers. Increased customer traffic during this period can lead to higher sales for local businesses, which is especially beneficial for smaller, independent stores.
