What to know about Maryland tax-free shopping week

Get ready to shop, Maryland. The state’s tax-free week is here.

The annual event, which was established in 2007, will give shoppers a chance to stock up on essentials while aiming to boost sales by local businesses. The state will forego its usual 6% sales tax on certain clothing items and shoes this Sunday through Aug. 15.

Comptroller Brooke Lierman said in a news release the sales tax holiday helps strengthen the local economy.

“Whether you’re preparing for a new school year, shopping for fall clothes or visiting from out of state, I encourage everyone to shop local to take advantage of these savings and experience everything Maryland’s retailers have to offer,” she said.

The state is projected to lose $9.6 million in revenue during tax-free week this year, according to comptroller spokesperson Jeremy Ames.

The tax-free week offers consumers a slight reprieve as inflation has kept prices on many everyday items high. Marylanders have been “pretty price-conscious” as inflation has settled in, said Cailey Locklear, president of Maryland Retailers Alliance, and many retailers offer additional promotions during the tax holiday to encourage shopping.

“It’s an excellent time to save money and support your local economy,” Locklear said.

What is eligible for tax-free purchases?

Clothing, footwear, belts, shoes and boots under $100 are all eligible, no matter what the total purchase is.

The first $40 of backpacks and book bags will also be tax-free. Any amount beyond that price, however, will be taxable. If a backpack is $50, for example, the sales tax is due on the $10.

What’s not eligible?

Many accessories, including jewelry, watches, handkerchiefs and ties, will still be taxable. Clothing designed for protective use, such as football pads, will not be tax-free.

Some school supplies, like pencils, lunch boxes and binders, will still be charged sales tax. The same goes for more expensive items like graphing calculators and laptops.

Boxed gift sets will also be subject to sales tax if they contain an item that is not eligible.

Can I shop online for tax-free week?

You should be able to shop online without sales tax if the retailer accepts payment for immediate shipment. But if the retailer doesn’t charge you until after tax-free week, you’ll have to pay tax.

Can I use coupons during tax-free week?

Shoppers can use store coupons that drop the prices of shoes and clothing below $100 to make them eligible for tax-free week.

Keep in mind the coupon must be from a store or retailer, not a manufacturer. If you want to buy a pair of Nike shoes from Kohl’s, for example, you must use a coupon or discount code from Kohl’s to drop the price below $100 and make the shoes exempt from sales tax.