It’s back-to-school season, which means Maryland tax-free week is almost upon us.
The state will forego its usual 6% sales tax on certain clothing items and shoes this Sunday through Aug. 16. The annual event, which usually occurs during the second week of August, gives consumers a chance to stock up on essentials and benefits businesses with extra sales.
But this year, as the Trump administration doubles down on tariffs, tax-free week may take on a different meaning, said David Kass, a clinical professor at the University of Maryland’s Robert H. Smith School of Business.
“The tariff, basically, is a sales tax that’ll be sooner or later passed on to the consumer,” said Kass, who previously held senior positions at the Federal Trade Commission and other federal agencies.
Kass said more people may take advantage of tax-free week this year as they look to save money before more tariffs kick in. Tax-free week may also help offset prices that have already gone up, he said, and let consumers buy items they’ll need in the future.
The economy is still strong, Kass said, but tariffs are creating an “enormous amount of economic uncertainty.”
Prices will likely increase over the next year as manufacturers, importers and retailers begin to see higher costs. Once tariffs are reflected in the final price for consumers, the economy will likely slow down, he added.
Comptroller Brooke Lierman said in a news release that the sales tax holiday is a “great way” to help Marylanders with their budgets.
The state is projected to lose $9.3 million in revenue during tax-free week this year, according to Comptroller of Maryland spokesperson Robyne McCullough.
What is eligible for tax-free purchases?
Any clothing, footwear, belts, shoes and boots under $100 are eligible, no matter what the total purchase is.
The first $40 of backpacks and book bags will also be tax-free. Any amount beyond that price, however, will be taxable. If a backpack is $41, for example, the sales tax is due on the $1. So the total would be $41.06.
What’s not eligible?
Many accessories, however, including jewelry, watches, handkerchiefs and ties, will still be taxable. Clothing designed for protective use, such as football pads, will not be tax-free.
Some school supplies, like pencils, lunch boxes and binders, will still be charged sales tax.
Boxed gift sets will also be subject to a sale tax if they contain an item that is not eligible.
Can I shop online for tax-free week?
As long as you pay for an eligible item and the retailer accepts it for immediate shipment, you should be able to shop online without sales tax. But if the retailer doesn’t charge you until after tax-free week, you’ll have to pay tax.
Can I use coupons during tax-free week?
Shoppers can use store coupons that drop the prices of shoes and clothing below $100 to make them eligible for tax-free week.
Keep in mind the coupon must be from a store or retailer, not a manufacturer. If you want to buy a pair of Nike shoes from Kohl’s, for example, you must use a coupon or discount code from Kohl’s to drop the price below $100 and make the shoes exempt from sales tax.
Where else can I get back-to-school supplies?
There will be several events in the Baltimore area that can help you gear up for back-to-school season, including some that will provide free school supplies.
The Tuerk House, a nonprofit drug and alcohol treatment organization, will host a back-to-school barbecue on Saturday, at which they will provide free school supplies, free haircuts and more.
The Baltimore City State’s Attorney’s Office is giving away backpacks and other school supplies in a community event with food, music and fun, according to a news release. The event will take place on Aug. 30 from noon to 4 p.m. at 1400 E. North Avenue.
The Enoch Pratt Free Library is also offering resources for families, including school supplies, access to computers and support with homework and tutoring. There will be events at over 10 different locations through September, including a program to design your own backpack at Cherry Hill and an arts and crafts session to personalize school supplies at the Central Library location.
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