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ANNAPOLIS, MD – august 13, 2024 – Maryland’s annual sales tax holiday, commonly known as “Shop Tax-Free Week,” is underway, running from August 11th through August 17th, 2024. The week-long event offers important savings for back-to-school shoppers, providing a temporary exemption from the state’s 6% sales tax on eligible clothing and footwear.
Understanding Maryland’s Tax-free Week
Established in 2007 by Maryland state law, the tax-free week is designed to help families prepare for the upcoming school year by reducing the cost of essential items. Comptroller Brooke Lierman highlighted the event as a way to “keep money in the pockets of hardworking Marylanders and help their budgets go further,” especially as costs for goods continue to rise.
Eligible Items: Moast clothing and footwear priced under $100 are exempt from sales tax. This includes items like shirts, pants, dresses, shoes, and socks.
Backpacks and Bookbags: A partial exemption applies to backpacks and bookbags. The first $40 of the purchase price is tax-exempt, while any amount exceeding $40 is subject to the standard 6% sales tax.
What’s Not Included?
Several items are specifically excluded from the tax exemption. These include:
- High-Priced Items: Any single article of clothing or footwear costing more than $100 is fully taxable.
- Accessories: Items considered accessories, such as jewelry, watches, handbags, scarves, ties, and umbrellas, are not eligible for the tax exemption.
- Protective Clothing: Specialized clothing or footwear designed for protective purposes, like football pads or work boots with steel toes, remains taxable.
- Fabric and Repair Supplies: Materials used for making or repairing clothing, including fabric, thread, buttons, and zippers, are subject to sales tax.
- Rental Clothing: Clothing or footwear that is rented, rather than purchased, is not eligible.
- Items for Resale: Purchases made for resale are not eligible for the exemption.
- Certain Footwear: Ski boots, skates, and golf shoes are not included.
- wedding Apparel: Formal wear specifically for weddings is not included.
- Costumes: Clothing intended as a costume is not included.
- Dry Cleaning/Laundry: Services like dry cleaning and laundry are not included.
- Repair Services: Repair services for clothing are not included.
- Alterations: Alteration services for clothing are not included.
- Shoes/Boots for specific sports: Shoes or boots specifically designed for athletic or sporting activities are not included.
- Specialty Work Clothing: Clothing designed for specific jobs (e.g., uniforms) are not included.
