Shop Maryland, Annual Tax-Free Week: August 12-18

The state’s annual tax-free week, dubbed Shop Maryland, returns August 12 – 18. 

While you may still be thinking about summer vacation, don’t forget to take advantage of the opportunity to go shopping for clothes and apparel tax-free.  This is a great time for back-to-school shopping, picking up the latest fashions or a new work wardrobe. 

Beginning 12:01 a.m. on Sunday, August 12 through Midnight on Saturday, August 18 Marylanders making qualifying purchases will not have to pay the six percent state sales tax.

During Shop Maryland, each qualifying clothing and footwear item priced $100 or less will be exempt from Maryland’s 6% sales tax including sweaters, shirts, slacks, jeans, dresses, robes, underwear, belts, shoes and boots. Accessory items such as, jewelry, watches, watchbands, handbags, handkerchiefs, umbrellas, scarves, ties, headbands and belt buckles do not qualify for the tax exemption.  Special clothing or footwear designed primarily for protective use and not for normal wear, such as football pads, also do not qualify for the tax break.

“This is a great time of year to visit Maryland stores. Not only can you get new clothes for you and your family, but you save money because you don’t have to pay the state sales tax on purchases up to $100,” said Comptroller Franchot.

Tax-free week is possible thanks to legislation passed in the 2007 special session of the Maryland General Assembly, this tax-free week will occur the second Sunday of August to the following Saturday each year, until the legislature decides to revisit the issue.

Tax-Free FAQ

If the total cost of several exempt items comes to more than $100, do I still have to pay tax?

Each qualifying article of clothing or footwear selling for $100 or less is exempt, regardless of how many items are bought at the same time. For example, two $60 sweaters bought at the same time are both exempt, even thought the total purchase price is more than $100.

Is the first $100 of a more expensive item tax-free?

No. If a suit costs $110, sales tax is due on the entire $110.

Where is information available about Shop Maryland Week?

A list of exempt and taxable items is available on the Comptroller’s Website at www.marylandtaxes.com, e-mail the agency at shopmaryland@comp.state.md.us, or by calling the Taxpayer Service Section at 410-260-7980 in Central Maryland or toll-free 1-800-MD TAXES from elsewhere.