When Is Maryland Tax Free Week & What Qualifies?

Maryland’s annual tax-free week offers residents a temporary reprieve from the state’s sales tax on specific purchases. This period aims to provide financial relief for shoppers, particularly as they prepare for the upcoming school year. Consumers can purchase certain eligible items without incurring the standard 6% state sales tax.

Key Dates and Duration

Maryland’s “Shop Maryland Tax-Free Week” consistently occurs each year, typically spanning seven days in August. In 2024, the tax-free period was observed from Sunday, August 11th, through Saturday, August 17th. For 2025, the event is scheduled to run from Sunday, August 10th, at 12:01 a.m. through Saturday, August 16th, at 11:59 p.m. This timing aligns with the common back-to-school shopping season, providing families with a predictable window to make eligible purchases.

What Qualifies for Tax Exemption

Certain categories of items are exempt from Maryland’s 6% sales tax during the tax-free week. The primary eligible items include most clothing and footwear, provided each individual item is priced at $100 or less. This per-item limit means that if a sweater costs $60 and a pair of shoes costs $80, both would be tax-exempt, even if the total transaction exceeds $100. Qualifying clothing and footwear include everyday apparel such as shirts, slacks, jeans, dresses, robes, underwear, belts, shoes, and boots.

Another category that qualifies for a partial exemption is backpacks and bookbags. For these items, the first $40 of the purchase price is exempt from sales tax. Online purchases also qualify for the exemption if the item is paid for and delivered to a Maryland customer during the tax-free period, or if the retailer accepts the order for immediate shipment, even if delivery occurs after the tax-free period ends. Layaway purchases initiated during the tax-free week are also eligible for the exemption, irrespective of when the final payment is completed.

Items Not Included and Purchase Limits

Certain goods and specific purchase scenarios do not qualify during Maryland’s tax-free week. Items priced above the specified limit for their category are fully subject to the state’s 6% sales tax. For instance, if a piece of clothing or footwear costs more than $100, the entire price of that item is taxable, not just the amount exceeding the $100 threshold. Similarly, for backpacks and bookbags, only the initial $40 of the purchase price is exempt; any amount over $40 is subject to the standard sales tax.

The tax exemption generally does not extend to accessories, even if they are typically worn with clothing. This includes items such as jewelry, watches, handbags, handkerchiefs, umbrellas, scarves, ties, headbands, and belt buckles. Additionally, clothing or footwear designed primarily for protective use or special activities, rather than for normal wear, remains taxable. Examples include football pads, cleats, steel-toe boots, dance shoes, ski boots, and wetsuits. Items used for making clothes, such as fabric, thread, or buttons, are also not exempt.