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Back to School tax break in Maryland

August 11th, 2017 by WCBC Radio

You won’t have to pay sales tax on clothing, footwear and certain school supplies in Maryland the week of Sunday, Aug. 13 to Saturday, Aug. 19. Items exempt from the 6 percent sales tax:

 
  • Clothing and footwear with a price of $100.
  • The first $40 of backpacks and bookbags. (Accessory items are not included.)

What happens if you buy several items and the total is more than $100?

 

Each clothing item (sweaters, shirts, slacks, jeans, dresses, robes, underwear, belts, shoes and boots) under $100 is not taxed.

What if an individual item is over $100?

You will be taxed on the full amount. So, if the boots cost $130, you will pay taxes on $130.

What about accessories, like purses and watches? 

 

Expect to pay taxes on all accessories, including jewelry, watches, watchbands, handbags, handkerchiefs, umbrellas, scarves, ties, headbands and belt buckles.

What about special clothing or shoes for sports?

Plan to pay the tax on those items because they are not intended for everyday use.

Will there be tax on items bought to repair clothing?

Yes, you will pay taxes on thread, buttons, zippers and other items for sewing.

What if something is bought online?

If the eligible items are bought online during the tax-free week and delivered in the same week, they will be exempt from sales taxes. Of course, the retailer has to accept the order for immediate shipment.  It won’t qualify if it’s on back order and you’re charged when it ships.

What if items are put on layaway during Tax-Free Week?

Items put on layaway during the exempt period are exempt, even if you pay for them after the week is over.

Maryland has more on Shop Maryland Tax Free Week spelled out in this fact sheet from the state comptroller.

If you have questions about the list of exempt and taxable items, you can call 1-800-MD-TAXES.

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