The 2023 Maryland tax-free week runs for seven full days. That’s longer than back-to-school tax holidays in most states, which typically only exempt items for two or three days. However, Maryland doesn’t include electronics or school supplies in its tax holiday like some other state sales tax holidays do. But there is still a lot of potential for savings.
Maryland tax-free week
Between August 13 and August 19, shoppers in Maryland won’t pay the state’s 6% sales tax on eligible purchases. That’s a savings of $6 on every $100 spent! But not all items qualify, and there are special rules you need to follow.
- Individual items must be priced at $100 or less to qualify.
- If an item costs more than $100, the entire amount is subject to sales tax (rather than just the amount over $100).
- Sets that contain taxable and tax-exempt items are fully taxable, regardless of the price.
- Only the first $40 of backpack purchases are tax-exempt.
What’s included in Maryland’s tax-free week
Maryland exempts certain clothing and footwear purchases from sales tax during the tax-free week. Here are some of the items you won’t pay sales tax on.
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- Shoes and boots
- Belts
- Sweaters and shirts
- Jeans and slacks
- Undergarments and robes
Additionally, eligible items placed on layaway during the tax holiday are tax-exempt, even if the layaway purchase is completed after the tax holiday. Other types of clothing may qualify as tax-exempt in Maryland during the back-to-school event. Shoppers can contact the Maryland Comptroller’s office if they have questions.
Tax on clothes in Maryland
Maryland’s definition of eligible clothing and footwear excludes some items from the tax-free weekend. Accessories, including ties, headbands, jewelry and handbags, are still taxable. And even though belts are tax-exempt, belt buckles are still subject to sales tax when sold separately. That’s not all. You’ll also pay tax on the purchases listed below.
- Items used to make and repair clothing (for example, fabric and zippers) are still taxable.
- Clothing alterations (tailoring services) are taxable.
- Protective clothing items (for example, shoulder pads) are fully taxable.
Redeeming coupons during your shopping trip can help you save money, but there are rules for those, too. Manufacturer’s coupons that lower a qualifying item’s price to $100 or less won’t qualify the item for the tax holiday. But a retailer’s coupon (store coupon) that reduces a price to $100 or less may qualify the item as tax-exempt.
Maryland tax-free online sales
Online orders are included in Maryland’s tax-free week, which can help shoppers save even more money, especially considering Maryland has one of the highest gas taxes in the country. To buy tax-free online, all you need to do is order and pay for your items during the Maryland sales tax holiday.
Your order must be shipped or accepted for shipment during the sales tax holiday, too. This just means your order won’t qualify as tax-exempt if you request delayed shipment. Items do not need to be delivered to your home during the tax-free week to qualify.
