ANNAPOLIS — Shop Maryland Tax-Free Week, i.e., the state’s annual sales tax holiday on select items, will begin Sunday, Aug. 9 and run through Saturday, Aug. 15.
During Shop Maryland Tax-Free Week, shoppers do not pay the state’s 6% sales and use tax for clothing and footwear priced under $100. The first $40 of a backpack or bookbag purchase also is tax-free.
The sales tax will be waived regardless of the number of items purchased.
For example, two $60 sweaters sold at the same time are both exempt, even though the total purchase price is more than $100.
Layaway purchases also qualify.
If a customer begins a layaway agreement during Shop Maryland Tax-Free Week, any eligible items placed on layaway during that time will qualify for the exemption.
For example, if a customer places 10 qualifying items on layaway during Shop Maryland Tax-Free Week, but completes the layaway and received the merchandise after the period ended, the total purchase is exempt from tax.
For online purchases, items qualify for the sales tax exemption if they are paid for and delivered or paid for and accepted for immediate shipment during the tax-free period.
With the exception of backpacks/bookbags, all accessories — including jewelry, watches, watchbands, handbags, handkerchiefs, umbrellas, scarves, ties, headbands and belt buckles — remain taxable.
Special clothing or footwear designed primarily for protective use and not for normal wear, such as football pads, also are taxable.
According to a news release from the office of state Comptroller Brooke Lierman, this year’s Tax-Free Week theme focuses on savings — for families, for local businesses and for communities across the state.
“We encourage Marylanders to consider doing their Tax-Free Week shopping at Maryland businesses. Purchases made at local retailers help support neighborhood jobs and contribute to the strength of local economies,” Lierman said in a statement.
