Maryland is the only DMV jurisdiction that will offer a Tax-Free Holiday this Summer. The Tax-Free Holiday was previously offered by both Virginia and DC but dissolved by both this year. From 12:01 a.m. on Sunday August 13th through midnight on Saturday August 19th, Maryland will forgo the 6% State Sales Tax on clothing and footwear. The exemption does not extend to Accessory items.
Though this was conceived to help with back-to-school costs, you do not have to be a parent or buy for school children to take advantage of the tax relief. Anyone can shop for each qualifying clothing and footwear item ($100 or less) which will be exempt from the state’s six percent sales tax. Your tax-free purchase total receipt amount has no limit other than the $100 or less per item price. Additionally, the first $40 of any backpack purchase will also be tax-free.
For the purposes of the tax exemption “Clothing or footwear” means an article of apparel designed to be worn on or about the human body. The excluded “Accessory items” include but are not limited to jewelry, watches, watchbands, handbags, handkerchiefs, umbrellas, scarves, ties, headbands, and belt buckles.
There are a lot of rules detailing the interpretation of that $100 or less price tag on the allowable tax-free items so be sure to read the entire flyer supplied by the Maryland Comptroller’s Office at Tax_Free_Week_Facts.pdf (marylandtaxes.gov)
Start planning your shopping now to take advantage of the 6% tax reduction and remember to shop locally!