Maryland’s Tax-Free Week 2024 Buyer’s Guide Full Details

As the school year approaches, Maryland’s tax-free week 2024 is about to kick off.

From August 11-17, the state will exempt certain clothing and shoe purchases from its standard 6% sales tax, aimed at encouraging back-to-school shopping. This annual event, usually held in the second week of August, was established by legislation passed by the Maryland General Assembly in 2007.

In light of rising prices nationwide, Comptroller Brooke Lierman expressed her hope that this tax relief will benefit both consumers and local businesses. “My hope is that this temporary relief helps boost customer traffic and sales for our local businesses and purchasing power for shoppers in Maryland,” she said.

The comptroller’s office estimates that during tax-free week, the state will forgo approximately $6.6 million in revenue, a slight increase from the $6.5 million loss last fiscal year.

What Items Qualify for Maryland’s tax-free week 2024?

• Eligible Items: Clothing, footwear, belts, shoes, and boots under $100 are tax-exempt.
• Backpacks and Book Bags: The first $40 is tax-free; any amount over that will be taxed. For instance, a $41 backpack will incur tax on the $1 excess, making the total $40.06.

Items That Remain Taxable

• Accessories: Jewelry, watches, handkerchiefs, and ties.
• Protective Clothing: Items like football pads.
• School Supplies: Pencils, notebooks, and lunchboxes.
• Boxed Gift Sets: If they include a non-eligible item like a tie or necklace, the entire set is taxable.

Frequently Asked Questions

What if My Total Purchase Exceeds $100?

Each item priced under $100 remains tax-free, regardless of the total bill.

Is Online Shopping Included?

Yes, online purchases qualify if you pay for the item and it is accepted for immediate shipment during the tax-free week. If an item is back-ordered and charged after the week ends, sales tax will apply.

Are Clothing Alterations Tax-Free?

No, alterations and items used to make or repair clothes, such as zippers and buttons, are taxable.

Can Coupons Be Used During Tax-Free Week?

Yes, store coupons can reduce item prices below $100, making them eligible for the tax exemption. However, the coupon must be issued by the store or retailer, not the manufacturer. For example, if you use a Kohl’s coupon to reduce the price of Nike shoes below $100, the purchase will be tax-free, but a manufacturer’s coupon from Nike won’t qualify.

What About Returns?

If you exchange an item for the same one after the exemption period, no additional tax is due. However, if you return an item for credit toward a different item after the exemption period, the new item will be subject to full sales tax.

By keeping these guidelines in mind, Maryland shoppers can maximize their savings during the tax-free week 2024 and make the most out of their back-to-school purchases.