Maryland Tax Free Week 2025: Essential Tips for Smart Savings

Maryland Tax Free Week 2025: Essential Tips for Smart Savings

Let’s be real—most people don’t think about sales tax until they’re at the register watching their total jump up by 6%. But in Maryland, there’s a golden window each year when that doesn’t happen. Maryland Tax Free Week 2025 is your chance to stock up on qualifying items without paying state sales tax, and if you play it smart, you can save hundreds of dollars on back-to-school shopping, clothing, and supplies.

The problem? Most folks miss out because they don’t know the exact dates, what items qualify, or how to actually maximize the savings. We’re going to walk you through everything you need to know to make the most of Maryland Tax Free Week 2025—no confusion, no surprises at checkout.

When Is Maryland Tax Free Week 2025?

In Maryland, Tax Free Week typically runs for one week in August, designed to help families prepare for the school year without the sting of sales tax. For 2025, Maryland’s Tax Free Week is scheduled for August 3-9, 2025. Mark your calendar now—this is a hard deadline, and sales tax kicks back in the moment the week ends.

Think of it like a subscription service: you get one week of “free” access, and then the meter starts running again. The state sets this date annually, so if you’re reading this after August 2025, check the official Maryland Department of Assessments and Taxation website for 2026 dates.

The timing isn’t random. Schools in Maryland typically start in late August or early September, so the state gives families a week to grab essentials without paying the 6% state sales tax (plus any local taxes). If you have multiple kids or a tight budget, this week can feel like finding money in your coat pocket.

Pro Tip: Set a phone reminder for August 1st so you don’t accidentally miss the window. Tax-free week sneaks up faster than you’d think, and procrastinating until August 8th means crowded stores and picked-over inventory.

What Items Qualify for Tax-Free Week?

Here’s where things get tricky. Not everything you buy during Maryland Tax Free Week is actually tax-free. The state has specific categories, and understanding them is crucial to avoid the awkward moment at checkout when the cashier says, “That’s not eligible.”

Clothing and Accessories (Under $100)

Most clothing items qualify, but there’s a catch: items must be under $100 per piece. So a $95 jacket? Tax-free. A $105 winter coat? You’re paying tax on the full amount. Shoes, socks, underwear, hats, gloves, and belts all qualify as long as they’re under the $100 threshold. This is one of the biggest categories people take advantage of during the week.

Items that don’t count: specialized athletic gear (like cleats or ski boots designed for specific sports), costumes, and certain accessories like jewelry or watches.

School Supplies

Notebooks, pens, pencils, folders, backpacks, calculators, and other traditional school supplies are all tax-free. This is straightforward—if it’s something a teacher would ask for on a supply list, it’s likely eligible. Whiteboard markers, index cards, glue sticks, scissors—all good.

The gray area: electronics like laptops or tablets. Maryland doesn’t include computers in its Tax Free Week, even if you’re buying them specifically for school. That’s frustrating, but it’s the rule.

What Doesn’t Qualify

Electronics, furniture, sports equipment, books, and certain hygiene items are excluded. You also can’t buy tax-free items online and have them shipped to Maryland—the purchase must be made in-state during the week.

A helpful way to remember: if it’s on a typical school supply list or it’s clothing under $100, it’s probably tax-free. If it’s a laptop, a desk, or a soccer ball, it’s not.

How to Maximize Your Savings During Tax-Free Week

Knowing what qualifies is step one. Actually saving money requires strategy. Here’s how to make every dollar count:

1. Make a List Before You Shop

Walk into a store without a plan, and you’ll walk out with stuff you didn’t need. Sit down with your kids (if you have them) and make a detailed list of what they actually need. Clothing? How many outfits? School supplies? Exactly which ones? A written list keeps you focused and prevents impulse buys that eat into your savings.

2. Buy Clothing at the Right Time

Retailers know about Tax Free Week. Prices don’t drop, but they don’t raise them either—you’re just avoiding the tax. However, some stores run sales simultaneously with Tax Free Week. Check ads beforehand and hit stores that are combining discounts with the tax break. You could save 15-20% total (discount + no tax) instead of just 6%.

3. Stock Up on Basics

Kids grow. Socks wear out. Pencils break. Use Tax Free Week to buy extras of basics—undershirts, socks, basic pants—that your kids will use regardless. You’re not buying frivolously; you’re just timing necessary purchases strategically.

4. Don’t Forget About Backpacks

A quality backpack costs $30-60 and is tax-free. This is an easy win. Grab one (or two, if one wears out during the year) during the week.

5. Check Store Policies on Exchanges

Stuff happens. Kids change their minds. Clothes don’t fit right. Buy during Tax Free Week, but before you leave the store, confirm the return/exchange policy. Most stores allow 30-60 days, so you’re covered if something doesn’t work out.

Money-Saving Hack: If you have multiple kids, the savings compound. A family of three kids spending $200 per child on tax-free items saves $36 in state sales tax alone. That’s a free tank of gas. Don’t leave that money on the table.

Where to Shop During Maryland Tax Free Week

You can shop anywhere in Maryland—Target, Walmart, local boutiques, department stores, online (in-store pickup only), you name it. The tax break applies statewide at all retailers.

That said, here’s the smart move: Check for sales before Tax Free Week starts. Major retailers like Target, Walmart, Kohl’s, and Gap typically advertise their back-to-school sales in early August. Some stores combine a 15-20% discount with Tax Free Week, which stacks your savings.

For school supplies specifically, office supply stores like Staples and Office Depot often have competitive pricing and run their own promotions during this period. Compare prices online before you go in.

Pro move: If you’re buying clothing, check if the store has a rewards program. Use your rewards card during Tax Free Week, and you might earn points on top of the tax savings.

Common Mistakes to Avoid

Mistake #1: Buying Items Over $100 Expecting Them to Be Tax-Free

That $125 winter coat? You pay tax on the full $125. The $100 limit applies to individual items, not your total purchase. If you need something pricey, buy it before or after Tax Free Week when you can shop around for sales instead.

Mistake #2: Assuming All Clothing Qualifies

Specialized sports equipment disguised as clothing doesn’t count. That $80 pair of cleats? Taxable. That $80 pair of jeans? Tax-free. Read the receipt carefully if you’re unsure.

Mistake #3: Buying Online Without Checking Shipping Policies

Online purchases are tricky. Maryland’s tax-free week applies to in-store purchases and in-store pickup orders, not shipped items. If you order online for delivery, you’ll pay tax. Plan accordingly.

Mistake #4: Procrastinating Until the Last Day

August 8th and 9th are absolute madhouses. Stores are picked over, lines are long, and you’ll waste time. Shop early in the week when inventory is fresh and crowds are manageable.

Mistake #5: Not Keeping Receipts

If you need to return something, you’ll need proof of purchase. Keep receipts organized in case you need to exchange items after Tax Free Week ends.

How Maryland Tax Free Week Compares to Other States

Maryland isn’t alone in offering tax-free shopping. Many states do, but the details vary wildly. If you’re curious how Maryland stacks up, here’s the reality:

According to the Tax Foundation, Maryland’s Tax Free Week is fairly standard. Most states that offer it focus on back-to-school items and clothing. However, some states are more generous—for example, Tax Free Day Ohio 2025 includes additional categories. If you’re moving to or from another state, the rules might surprise you.

States like Pennsylvania don’t offer tax-free weeks at all, which is why Maryland residents should feel lucky. Other states like Texas and Florida have broader exemptions year-round.

The bottom line: Maryland’s Tax Free Week is solid, but it’s not the most generous. Make the most of it while you have it.

Tax Implications and Record-Keeping

Here’s a question that surprises people: Do I need to track my Tax Free Week purchases for taxes?

The short answer: No, not for federal income tax purposes. The sales tax you avoid isn’t a deduction you claim on your 1040. It’s simply a state-level tax break during a specific week.

However, if you’re self-employed or run a small business, things are different. If you’re buying supplies for a business (even a side hustle), you should track these purchases because they might be deductible as business expenses. Keep receipts organized by category.

For personal use, just enjoy the savings without worrying about tax forms.

Warning: Don’t try to claim sales tax savings as a deduction on your Maryland state return. The IRS and Maryland Department of Assessments and Taxation don’t allow this. Tax Free Week is a direct tax break at the point of sale, not something you deduct later.

For more information on how sales tax works federally, check out IRS Topic 751: Sales Tax.

If you’re dealing with more complex tax situations—like whether certain purchases are deductible for business purposes—consult a tax professional. It’s worth the peace of mind.

Frequently Asked Questions

Can I buy items online during Maryland Tax Free Week and have them shipped to my home?

– No. Online orders shipped to your address are taxable. However, if you order online and pick up in-store during Tax Free Week, the tax break applies. Plan your shopping accordingly—order early for in-store pickup, not home delivery.

What if an item is exactly $100? Is it tax-free?

– Yes. The limit is $100 per item. A $100 coat is tax-free. A $100.01 coat is taxable. It’s a strict cutoff, so check prices carefully.

Do gift cards purchased during Tax Free Week have any special benefit?

– No. Gift cards themselves aren’t tax-free items. However, if you use a gift card to buy tax-free items during the week, the items are still tax-free. The tax break applies to the items you buy, not the payment method.

Can I return items bought during Tax Free Week after the week ends and get a refund?

– Yes, as long as you’re within the store’s return window (usually 30-60 days). The refund will reflect the tax-free price you paid. Keep your receipt as proof.

Are shoes always tax-free during Tax Free Week?

– Most shoes qualify, but specialized athletic footwear (like cleats, ski boots, or ice skates) may not. Regular sneakers, dress shoes, sandals, and boots are fine. When in doubt, ask the cashier before checkout.

What about buying supplies for a homeschool co-op or classroom volunteer project?

– As long as you’re buying personal school supplies (not reselling them), they qualify. If you’re buying in bulk for a business purpose, consult a tax professional about deductibility.

Does Maryland Tax Free Week apply to used clothing or thrift stores?

– Generally, yes, as long as the thrift store is a registered retailer in Maryland. However, some thrift stores may not participate. Ask before you shop.

What happens if the cashier rings something up as taxable by mistake?

– Ask them to correct it right there at the register. Don’t leave the store without checking your receipt. If you catch it later, contact the store with your receipt and they should issue a refund for the tax charged in error.

Final Thoughts

Maryland Tax Free Week 2025 is a real opportunity to save money on back-to-school essentials. It’s not a life-changing windfall, but for families buying for multiple kids, it’s meaningful. A hundred dollars in tax-free purchases saves you $6 in state sales tax—that’s money back in your pocket.

The key is planning ahead, knowing what qualifies, and shopping early in the week when stores are stocked and crowds are manageable. Make a list, stick to it, and don’t assume everything qualifies just because you’re shopping during the magic week.

And if you’re curious about how sales tax works in other places—whether you’re traveling to Las Vegas, San Jose, or Phoenix—understanding your local tax rules helps you budget smarter everywhere.

Now go make that list. Tax Free Week is coming, and you’re ready.