Maryland’s annual tax-free week offers a temporary break on select school-related purchases, helping families save on back-to-school costs. The exact dates and item limits can change each year, so it’s important to verify with the Maryland Comptroller’s Office before shopping. This article explains when Maryland’s tax-free week happens, which items are eligible, the purchase limits, and how to make the most of the savings while staying compliant with the rules.
When Is Maryland’s Tax-Free Week?
Maryland’s tax-free week for back-to-school typically runs for a full week in August, beginning on a Sunday and ending the following Saturday. During this period, purchases of qualifying clothing, footwear, and certain school supplies are exempt from Maryland state sales tax. Because the dates can shift slightly from year to year, shoppers should check the latest guidance from the Maryland Comptroller or official state resources before planning large purchases.
What Items Are Eligible?
Eligible items generally fall into three broad categories: clothing and footwear, school supplies, and bags used to carry school items. Key points include:
- Clothing and footwear priced at $100 or less per item are tax-free. Items priced above $100 per item do not qualify, even if purchased during the week.
- School supplies priced at $50 or less per item are tax-free. This includes common supplies such as notebooks, pencils, pens, rulers, glue, and backpacks that qualify as school supplies.
- Backpacks and bags used for carrying school-related items are eligible if the item itself qualifies as a school supply and is $50 or less per item. Accessories and non-school bags do not qualify.
Important exclusions apply. Items such as athletic apparel or gear that is not primarily for school use, jewelry, accessories, diapers, furniture, computers and related devices, tablets, software, and athletic equipment often do not qualify, even if purchased during the tax-free week.
What Are The Rules And Limitations?
Following the rules ensures you maximize savings without paying taxes or penalties. Notable rules include:
- Item-level limits apply. A single item can be tax-free only up to the stated price cap (typically $100 for clothing/footwear and $50 per item for school supplies).
- Per-item basis limits mean the price is considered item-by-item. Bundled items must be evaluated individually for eligibility.
- In-store and online purchases during the tax-free week qualify, including orders placed online for delivery or curbside pickup, if the purchase is billed during the tax-free period and the items are eligible.
- State and local taxes are waived for eligible items only; other charges such as shipping, handling, and delivery fees may not be tax-free and could be subject to tax.
- Taxable items and services outside the eligible categories remain subject to Maryland sales tax during the tax-free week, so shoppers should review receipts carefully.
How To Shop During Tax-Free Week
Smart planning helps maximize savings while staying compliant. Consider these tips:
- Plan ahead: Make a list of clothing, footwear, and school supplies you expect to purchase, noting which items meet the price caps.
- Compare prices: Check prices before the week begins to identify items that will stay within the eligibility limits when purchased.
- Split purchases: If a needed item costs more than the limit, consider buying only the portion that qualifies and paying tax on the remainder, or delaying the extra portion until after the week if possible.
- Keep receipts: Maintain itemized receipts to demonstrate eligibility in case of an audit or dispute with vendors.
- Online orders: If shopping online, ensure the order date falls within the tax-free period and that the item qualifies under the per-item price limits.
Tips For Maximizing Savings
Maximize benefits by focusing on high-volume, qualifying purchases. For families with multiple children, itemizing per-child clothing and school supplies can yield substantial tax savings. Consider shopping early for the best selection, especially for popular items that frequently sell out. Additionally, some retailers may advertise tax-free promotions in conjunction with the state program, so watching sale ads can offer combined discounts beyond the tax exemption.