Mark your calendars and get ready to indulge in some tax-free retail therapy! Maryland Tax-Free Week for 2023 is just around the corner. Here’s what to know to ensure you’re getting most out of the sales-tax holiday.
When is Maryland Tax-Free Week 2023?
Tax-Free Week in Maryland will take place from August 13 to August 19. This annual event has become a highly anticipated time for shoppers in the state to save on various back-to-school necessities and other qualifying items.
What is Maryland Tax-Free Week?
Maryland Tax-Free Week is a seven-day period during which the state offers a reprieve from sales tax on certain eligible items. It was initially established to assist families with the financial burden of back-to-school shopping, enabling them to purchase essential items without incurring additional costs associated with sales tax. The initiative has grown in popularity over the years, attracting not only parents and students but also bargain hunters looking to capitalize on significant savings.
What’s Included in Maryland Tax-Free Week?
During Maryland Tax-Free Week, the following items are eligible for exemption from the state’s 6% sales tax (see a full list here):
- Clothing and Footwear: All qualifying apparel priced at $100 or less per item will be tax-free. This category includes a wide range of items, such as shirts, pants, dresses, shoes, coats, hats, and more. Whether you’re searching for trendy back-to-school outfits or just refreshing your wardrobe, this is the perfect time to shop without the added tax burden.
- The First $40 of a Backpack: If you have your eye on a stylish and sturdy backpack that costs more than $40, don’t worry! The first $40 of a backpack’s purchase price is exempt from sales tax, allowing you to save on both fashion and functionality.
What’s Not included in Maryland Tax-Free Week?
While Maryland Tax-Free Week offers a fantastic opportunity to save money on various back-to-school items, not all purchases are eligible for the sales tax exemption. Here are some items that do not qualify:
- Non-Qualifying Apparel: Not all clothing and footwear items are tax-free during this week. Any individual item priced at more than $100 will still be subject to the standard 6% sales tax rate.
- Accessory Items: While clothing is included in the tax exemption, accessory items like jewelry, handbags, and watches are not covered.
- Protective Equipment: While clothing and footwear are tax-free, specialized protective equipment, such as certain types of sports gear or safety equipment, do not qualify for the sales tax exemption.
- School Supplies: Many other states include school supplies (markers, binders, folders, etc.) in their tax-free weekends and weeks, but Maryland does not.
In addition to the exclusions above, keep the following rules in mind:
- You can’t “average” the cost of things sold as a unit. For example, if you get a BOGO deal or package deal, you can’t split out the “individual” costs of each item to get under that $100-per-item threshold on clothing. If the pair or set is above $100, you’ll have to pay tax on it.
- Using a coupon or promo code? If it brings the price below $100 for clothing, congrats — it’s tax exempt. However, if you try to use a rebate, that won’t work, as the reimbursement to the retailer comes later.
- Shopping online? Don’t worry about shipping charges putting your clothing items “over the limit.” Shipping charges are NOT included in the item’s cost.
The post Maryland Tax-Free Week 2023: What Shoppers Need to Know appeared first on The Real Deal by RetailMeNot.
