Let’s be real: most people don’t get excited about tax policy. But Maryland Tax-Free Week 2025 is one of those rare moments when the government actually hands you a break without requiring a spreadsheet and a calculator. If you live in Maryland or plan to shop there, this week could save you hundreds of dollars on back-to-school supplies, clothing, and other essentials.
The thing is, most Marylanders miss out on these savings because they don’t know the exact dates, what’s eligible, or how to plan strategically. You might think “tax-free week is just a week where I don’t pay sales tax,” but there’s way more strategy involved if you want to maximize your savings.
In this guide, we’ll walk through everything you need to know about Maryland Tax-Free Week 2025—when it happens, what you can buy without paying Maryland’s 6% sales tax, and how to stack these savings with other tax benefits like the Homestead Tax Credit Maryland for even bigger wins.
When Is Maryland Tax-Free Week 2025?
Maryland’s Tax-Free Week for 2025 runs from August 3–9, 2025. Mark it on your calendar. This is the official window when you can purchase qualifying items without paying Maryland’s 6% sales tax (plus any local taxes, which vary by county).
Here’s the thing: this week typically aligns with back-to-school season, which is intentional. The state designed this break to help families afford school supplies and clothing before kids head back to the classroom. But smart shoppers use it for way more than just pencils and backpacks.
The timing matters because retailers know about this week too. Some stores run special promotions during this period, stacking their discounts on top of the already-eliminated sales tax. If you’re buying a $200 laptop for school, you’re looking at roughly $12 in tax savings right there. Multiply that across a family of three kids, and you’re talking real money.
Pro tip: Start your shopping list now, even though the week is months away. This gives you time to plan which stores have the best prices and which items you actually need versus impulse buys.
What Items Qualify for Tax-Free Week?
Not everything is tax-free during this week. Maryland has specific categories that qualify. Understanding these is crucial because buying the wrong item won’t save you anything.
Qualifying items include:
- Clothing and accessories under $100 per item (shoes, hats, belts, scarves, gloves, etc.)
- School supplies like notebooks, pens, pencils, folders, binders, backpacks, and lunch boxes
- Computers and related equipment under $500 per item (laptops, tablets, keyboards, mice, monitors)
- Computer software for educational purposes
- School art supplies like sketchbooks, paints, and markers
- Calculators and other educational technology
The $100 clothing limit and $500 computer limit are important thresholds. If you buy a designer jacket for $150, you only avoid tax on the first $100. The remaining $50 is taxable. This catches a lot of people off guard.
For computers, that $500 cap means you can snag a solid budget laptop tax-free, but high-end gaming rigs or professional workstations won’t qualify fully. A $1,200 MacBook Pro? Only the first $500 is tax-free.
Think of it this way: Maryland wants to help families afford essentials, not luxury items. The price caps enforce that philosophy.
Real-world example: If you’re buying three kids back-to-school supplies totaling $300, you save roughly $18 in Maryland sales tax (6% of $300). That’s money back in your pocket that you can use for other school expenses.
Items You Cannot Buy Tax-Free
This is where people make mistakes. Just because it’s school-related doesn’t mean it’s tax-free during this week.
Items that DO NOT qualify:
- Clothing over $100 per item
- Computers or equipment over the stated price limits
- School meals and food items
- Textbooks (unless purchased directly from an educational institution)
- Sports equipment and athletic gear
- Furniture (even if it’s for a dorm room)
- Haircuts and personal services
- Musical instruments
- Toys and games (even educational ones)
- Cleaning supplies
- Cosmetics and personal care items
The sports equipment exclusion frustrates a lot of parents. Your kid needs new cleats for soccer? That’s taxable. A new baseball glove? Taxable. But a backpack to carry their gear? Tax-free. The distinction is whether the item is school-supply related or sports-activity related.
Food items never qualify for tax-free status in Maryland, even if you’re buying them for school lunch. That’s a federal rule, not a Maryland thing.
Online Shopping Rules During Tax-Free Week
Here’s where it gets tricky. Can you order online during tax-free week and get the tax break? The answer depends on where the seller is located and how Maryland’s tax rules apply to remote sales.
The general rule: If you order from a Maryland-based retailer during tax-free week, and the items qualify, you should get the tax break. But if you order from an out-of-state retailer, they may not apply Maryland’s tax-free week rules unless they specifically choose to.
Major retailers like Amazon, Target, and Walmart have different policies. Some honor Maryland’s tax-free week for online orders if you’re shipping to a Maryland address. Others don’t. You need to check with each retailer individually.
Here’s my honest take: Shopping in-store during tax-free week is the safest bet. You know the tax won’t apply at checkout. Online shopping can be ambiguous, and you might get charged tax even though you thought you’d get the break.
If you do order online, keep your receipt and check the tax line. If you were charged tax on a qualifying item, contact customer service immediately. Many retailers will refund the tax difference if you can prove the purchase was during tax-free week.
Pro tip: Use online shopping for price comparison before tax-free week, then buy in-store during the actual week. This gives you the best of both worlds—you know what the best deals are, and you lock in the tax savings.
Combining Tax-Free Week with Other Maryland Tax Benefits
Tax-free week isn’t your only savings opportunity in Maryland. Smart residents layer multiple tax breaks to maximize their benefit.
If you own a home in Maryland, you might qualify for the Homestead Tax Credit Maryland, which reduces your property tax burden. While this doesn’t directly apply to tax-free week shopping, understanding all your Maryland tax benefits gives you a complete picture of your tax situation.
Additionally, Maryland offers a Earned Income Tax Credit (EITC) for lower-income families. If you qualify for the EITC, you might get a refund that you can use for school supplies during tax-free week. That’s like getting a double tax break.
Some employers also offer dependent care accounts (FSA) or education savings plans that you can use during tax-free week. If your employer offers a dependent care FSA, you can contribute pre-tax dollars that you use to buy qualifying school supplies. Combined with the tax-free week, you’re saving on both income tax and sales tax.
The strategy: Use your tax refund or EITC refund specifically for tax-free week shopping. This amplifies your savings because you’re using tax-advantaged money to buy tax-free items.
Strategic Shopping Tips to Maximize Savings
Now let’s talk strategy. Knowing the rules is one thing. Using them to actually save money is another.
1. Plan Your Purchases in Advance
Don’t wait until August 3rd to figure out what you need. Start your list in July. Identify the exact items, the quantities, and the stores where you’ll buy them. This prevents impulse purchases and ensures you’re buying things you actually need.
2. Stack Coupons and Promotions
Retailers often run special promotions during tax-free week knowing that customers are already coming in for the tax savings. Check store flyers and websites for additional discounts. A 20% off coupon plus the eliminated sales tax can add up fast.
3. Buy in Bulk Strategically
If you have multiple kids, buy school supplies for all of them during this week. Pencils, notebooks, folders—these items don’t expire, and you’ll use them throughout the year. Buying a year’s worth during tax-free week is smart.
4. Check Price Limits Carefully
Remember the $100 clothing limit and $500 computer limit. If you’re buying multiple items, make sure each individual item stays under the limit. A store might ring up three $35 shirts separately (all tax-free) or as a $105 total (which would be partially taxable). Ask the cashier to ring them separately if needed.
5. Compare Prices Before Tax-Free Week
Some stores jack up prices right before tax-free week knowing customers will flock in for the tax break. Use NerdWallet or similar price-comparison tools to check if prices are actually competitive. A tax-free week at a higher price isn’t a good deal.
6. Don’t Forget Smaller Retailers
Big box stores like Target and Walmart get all the attention, but local office supply stores, computer shops, and clothing boutiques also honor tax-free week. These stores sometimes have better prices or selection for specific items.
7. Use a Rewards Card
If you have a store rewards card or credit card with cash back, use it during tax-free week. You’re stacking the tax savings with rewards points or cash back. On a $300 purchase, you might save $18 in tax plus earn $3-6 in rewards.
Pro tip: If you’re buying expensive items like computers, ask about price-matching. Some retailers will match competitor prices and then apply the tax-free week savings on top.
Regional Considerations for Maryland Shoppers
Maryland has a 6% state sales tax, but local taxes vary by county. This affects your total savings during tax-free week.
County tax rates:
- Baltimore City: 7.625% total (6% state + 1.625% local)
- Prince George’s County: 7% total (6% state + 1% local)
- Montgomery County: 6% total (state only)
- Anne Arundel County: 6.5% total (6% state + 0.5% local)
- Howard County: 6% total (state only)
- Other counties: 6-6.5% total
If you live in Baltimore City, your tax-free week savings are higher (1.625% more) than someone in Montgomery County. A $300 purchase saves you $19.50 in Baltimore City versus $18 in Montgomery County.
Here’s a strategy some people use: If you live near a county border, you might drive to a lower-tax county to shop during tax-free week. But honestly, gas costs and time usually make this impractical unless you’re buying a lot of high-ticket items like computers.
If you’re buying a computer for $500, that’s $32.50 in savings in Baltimore City. If you’re buying three computers, that’s nearly $100 in savings—worth a drive to a lower-tax county if you’re close to the border.
Frequently Asked Questions
Does Maryland Tax-Free Week apply to online purchases from out-of-state retailers?
– Not automatically. Out-of-state retailers aren’t required to honor Maryland’s tax-free week unless they choose to. Major retailers like Amazon and Walmart have specific policies. Check with the retailer before ordering. In-store purchases are your safest bet for guaranteed tax savings.
Can I return items purchased during tax-free week if they don’t fit or I change my mind?
– Yes, but the refund typically applies to the purchase price without tax. If you return a $100 item bought tax-free, you get $100 back, not $106. The tax savings don’t reverse. This is actually a benefit because you keep the tax savings even if you return the item.
What happens if I buy an item for $99.99 and the tax-free price limit is $100?
– You’re fine. The item qualifies as tax-free. The limits are per item, not per transaction. As long as each individual item is under the limit, it’s tax-free.
Can I use a gift card purchased before tax-free week to buy items during the week?
– Yes. The tax-free status applies to when you make the purchase, not when you bought the gift card. If you use a gift card to buy qualifying items during tax-free week, you get the tax break.
Does tax-free week apply to school uniforms?
– Yes, if they’re under $100 per item. School uniforms are considered clothing and qualify for the tax break as long as they stay under the individual item limit.
What if a store refuses to apply the tax-free week discount?
– Contact the store manager immediately. Tax-free week is a state law, not a store policy. Retailers are required to honor it. If a store refuses, you can file a complaint with the Maryland Department of Revenue or contact your local consumer protection office. Most stores are well-trained on this, but mistakes happen.
Can I buy gifts for other people during tax-free week?
– Absolutely. As long as the items qualify and you’re buying them during the official week, the tax break applies regardless of who the items are for. This is a great strategy for buying birthday gifts for school-age kids during this week.
Does tax-free week apply to teacher purchases?
– Yes. Teachers can buy qualifying school supplies tax-free during this week, just like anyone else. If you’re a teacher stocking your classroom, this is a great opportunity to save on supplies.
