What Are Tax-Free Items?

Tax-free items refer to goods that are exempt from sales tax during a designated period, such as Maryland's annual Tax-Free Week. This period allows shoppers to purchase certain items without paying the state’s regular sales tax, giving them the opportunity to save on essential purchases. But not all items qualify for tax exemption, so it's important to understand what counts as a tax-free item during this time.

What Qualifies as Tax-Free?

In Maryland, the primary items that qualify as tax-free during the designated period are clothing and footwear. To qualify for the exemption, the following rules apply:

1. Clothing – Apparel such as shirts, pants, dresses, shorts, jackets, and coats are exempt, provided they are priced under $100 per item. This exemption also applies to everyday wear and work attire.
2. Footwear – Shoes, boots, sneakers, sandals, and other types of footwear are also tax-exempt, as long as each individual item is priced under $100. This exemption can be especially beneficial for families purchasing back-to-school clothes or for anyone in need of new shoes.

What Doesn’t Qualify?

While Maryland’s Tax-Free Week offers great savings, some items do not qualify for the exemption. These include:

1. Accessories – Jewelry, handbags, belts, scarves, hats, and other accessories are not exempt from sales tax. Despite being part of an outfit, these items are excluded from the tax-free benefit.
2. Special-Use Items – Clothing and footwear intended for special purposes, such as sports equipment, protective gear, or dance shoes, are not considered tax-free items.
3. Items Over $100 – If an individual clothing or footwear item exceeds the $100 threshold, it will be subject to the regular sales tax. For example, a $120 pair of boots or a $150 jacket will still be taxed.

Why Tax-Free Items Matter

Tax-free items are a valuable opportunity for shoppers to save on everyday clothing and footwear needs. By taking advantage of the exemption, consumers can avoid paying the typical 6% Maryland sales tax on eligible items. This can make a significant difference, especially for families shopping for school uniforms or anyone looking to update their wardrobe.

Plan and Save

To make the most of tax-free shopping, focus on clothing and footwear priced under $100 per item. Keep in mind that accessories, specialized items, and items over the $100 limit remain taxable. With the right planning, you can enjoy big savings on your essential wardrobe purchases during Maryland's Tax-Free Week.