Business & Tech

Tax-Free Shopping Begins in Maryland August 11

Clothes and footwear will be exempt from sales tax until August 17.

By Kirsten Petersen

If you’re looking to update your wardrobe for a new job or a new year at school, the second week of August, Maryland’s Tax-Free Week, is the time to buy.

Clothing and footwear that costs less than $100 will not be subject to Maryland’s 6 percent sales tax from August 11 to August 17.

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Eligible items range from the essential to the unexpected. Employee uniforms, religious clothing, graduation robes and prom dresses are on the list, but also diapers and non-commercial laundry and dry-cleaning services. Tennis shoes, dress shoes, galoshes and even bowling shoes made the cut for footwear.

Items that will not be exempt from the sales tax include backpacks, jewelry, hair accessories and fabric. Although many shoppers choose to buy school supplies during this week, office supplies will not be tax-free.

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While Maryland shoppers have enjoyed the tax-free holiday for more than 10 years, the state has experienced a multi-million dollar loss in revenue. In 2007 the Maryland General Assembly estimated that $9.5 million would be lost in sales tax revenue during the tax-free week in fiscal year 2012, according to the Comptroller of Maryland.

Each year, the state anticipates a loss of $10 to $15 million in tax revenue during the two tax-free holidays—one in August for clothes and shoes and one in February for energy-efficient appliances. 

The state cannot provide exact numbers because store retailers do not always report sales that aren’t taxed, according to the Maryland Comptroller.

Check out a list of all eligible items here. The Maryland Comptroller released a FAQ for the public to reference as well.


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