Update: The 2023 Maryland tax-free week has ended. Here are the highlights.
The 2023 Maryland tax-free week ran 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 didn’t include electronics or school supplies in its tax holiday like some other state sales tax holidays do.
Maryland tax-free week
Between August 13 and August 19, shoppers in Maryland didn'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 qualified, and there were special rules.
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- Individual items must have been priced at $100 or less to qualify.
- If an item cost more than $100, the entire amount was subject to sales tax (rather than just the amount over $100).
- Sets that contained taxable and tax-exempt items were fully taxable, regardless of the price.
- Only the first $40 of backpack purchases were tax-exempt.
What’s included in Maryland’s tax-free week
Maryland exempted certain clothing and footwear purchases from sales tax during the tax-free week. Here are some of the items you didn't need to pay sales tax on.
- Shoes and boots
- Belts
- Sweaters and shirts
- Jeans and slacks
- Undergarments and robes
Additionally, eligible items placed on layaway during the tax holiday were tax-exempt, even if the layaway purchase was to be completed after the tax holiday.
Tax on clothes in Maryland
Maryland’s definition of eligible clothing and footwear excluded some items from the tax-free weekend. Accessories, including ties, headbands, jewelry and handbags, were still taxable. And even though belts were tax-exempt, belt buckles were still subject to sales tax when sold separately. That’s not all. You also had to pay tax on the purchases listed below.
- Items used to make and repair clothing (for example, fabric and zippers) were still taxable.
- Clothing alterations (tailoring services) were taxable.
- Protective clothing items (for example, shoulder pads) were fully taxable.
There were rules for redeeming coupons, too. Manufacturer’s coupons that lowered a qualifying item’s price to $100 or less didn't qualify the item for the tax holiday. But a retailer’s coupon (store coupon) that reduced a price to $100 or less could qualify the item as tax-exempt.
Maryland tax-free online sales
Online orders were included in Maryland’s tax-free week. To buy tax-free online, all you needed to do was order and pay for your items during the Maryland sales tax holiday.
Your order must have been shipped or accepted for shipment during the sales tax holiday, too. This just means your order didn't qualify as tax-exempt if you requested delayed shipment. Items did not need to be delivered to your home during the tax-free week to qualify.
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