Who doesn’t like saving money? People from all sectors of society look for ways to save money, earn profits, and expand their financial resources. The government in the state announced a Maryland tax-free week, which will offer tax exemption on many products.
Typically, a resident in Maryland pays a flat 6% sales tax on all products. This tax exemption scheme allows people from average and low-income backgrounds to buy essential products, save money, and support local communities and businesses for a week.
Luxury accessories, goods, and services are exempted from the tax-exempt products list as they are not essentials. People will use clothes and footwear that cost below $100 individually. One can save more by using coupons and discounts. Let us learn more about Maryland’s tax-free week and how you can save money by spending some. Also, check out AI-powered Beem’s tax filing assistance for both federal and state taxes regardless of your employment status.
When is Tax-Free Week in Maryland 2023
This year, from August 13 to August 19, the Maryland government announced zero sales tax on certain products. This week was called tax-free week. It allowed Maryland residents to save $6 for every $100. Maryland has a flat 6% sales tax, which relieved all the residents. The tax-free scheme is valid for seven days and does not include all products.
Electronics, school supplies, and other things are excluded from the tax-free list. It also comes with a set of rules that must be followed. Some of these rules are as follows:
- For items to qualify, they must be priced at $100 or less.
- Sales tax applies to the entire amount of an item that costs more than $100.
- A set’s price of taxable and tax-exempt items does not affect taxability.
- Tax-free backpacks are only available up to $40.
Benefits of Tax-Free Shopping in Maryland
The most prominent benefit of all is this week saves money. Because of a flat tax on all products in Maryland, the residents pay a hefty sum of their income as sales tax. Usually, most governments offer such tax-free schemes for office supplies and school stationeries. It helps residents save money, support their families, and evade taxes on every purchase.
Most of the items that are tax-free for the week in Maryland are clothes and footwear. These are a necessity, and due to inflation, most families could not afford enough clothes. Along with that, footwear, diapers, dry cleaning services, and costumes are all critical for various groups of society. With a tax-free week, residents in Maryland can save money and buy products to support local businesses.
What is Not Included in the Tax-Free Weekend?
Many items should be included in a tax-free week in Maryland. Usually, tax-free weeks have back-to-school supplies and bags as the core product, but these tax-free weeks include mostly clothes and footwear.
Most clothes and footwear retailers are not doing well because of inflated prices, and one can support the local communities and market. Luxury goods and commercial services, such as jewelry, watches, and furs, are not included in the tax-free week. Alcoholic beverages and tobacco products are also not included.
What’s Included in Maryland’s Tax-Free Week
During the tax-free week, Maryland exempts specific clothing and footwear purchases from sales tax. Purchases made during the tax holiday are tax-exempt, regardless of when they are completed. Other types of clothing may qualify as tax-exempt in Maryland during the back-to-school season.
- Shoes and boots
- Adults diapers
- Baby diapers
- Bridal gowns and dresses (rented or sold)
- Prom dress
- Dry-cleaning services (non-commercial)
Items eligible for tax deductions include clothing, footwear, and backpacks up to $100 each. The tax-free savings are not only applicable to back-to-school shoppers but also to all consumers. One can buy all these items at much lower prices using discounts and coupons.
How to Save During Maryland Tax-Free Weekend?
To save the maximum amount during Maryland tax-free weekend, one must buy all-time at $100 or below. One can also buy a backpack for up to $40 without paying sales tax. Even if your total bill is above $100, if each item is below $100, you will save 6% sales tax on all the products. If you select products over $100, you must pay tax on the total price.
It is an opportunity to buy all the necessary goods and items, especially for average or low-income families. One can also purchase items on discounts and coupons to save sales tax. If a product is priced above $100 and the coupon reduces the price below $100, then your product is qualified for tax exemption. However, one cannot ask the seller to sell products by dividing the costs, such as making $120 into $60 twice.
Tax on Clothes in Maryland
Some items are excluded from Maryland’s tax-free weekend because they need to meet its definition of eligible clothing and footwear. Handbags, jewelry, headbands, and other luxury items are still subject to tax. Manufacturer’s coupons that reduce a qualifying item’s price below $100 won’t qualify for the tax holiday. However, a retailer’s coupon that lowers a price to $100 or less may be eligible for the item as tax-exempt.
Below is the list of products that are taxable even during tax-free week:
- Items used to make and repair clothing, such as fabric and zippers, are still taxable.
- Clothing alterations, including tailoring and dry cleaning services, are taxable.
- Protective clothing items such as shoulder pads are fully taxable.
Maryland Tax-Free Online Sales
Maryland residents can also buy eligible clothing and footwear online during the tax-free week. It helps shoppers to buy more as it is convenient to order online. Marland has one of the country’s highest gas taxes, making online shopping more affordable. Here are a few steps to follow while ordering online during tax-free week in Maryland.
- Maryland sales tax holidays allow you to buy tax-free online. You need to order and pay during the holiday period.
- Sales tax holiday orders must also be shipped or accepted for shipment.
- When you request delayed shipment, your order will not qualify as tax-exempt. Tax-free week does not require delivery to your house.
List of Tax-Free Items in Maryland
The Maryland tax-free week exempts specific apparel and footwear purchases from sales tax. Most goods that are tax exempted are necessary goods. The price of each item must be equal to or below $100 to qualify for sales tax exemption. Also, one can use a retail coupon to lower the prices in the eligible range to buy products above $100. Here are some items you won’t be billed sales tax on:
- Shoes and boots
- Sweaters and shirts
- Jeans and slacks
- Undergarments and robes
Is it still tax-free week in Maryland?
No, the tax-free week was from August 13 to August 19, 2023. The comptroller might announce another tax-free week during back-to-school season.
Does Maryland tax-free week work online?
Yes, Maryland Tax-free Week works online. However, one must remember that the order is placed and paid during the tax-free week to obtain sales tax exemption. If you apply for delayed shipment, your order won’t qualify for tax exemption.
Can I file my Maryland taxes for free?
Yes, one can file Maryland taxes free online. You must fill in all your details, prepare your returns, credits, and deductibles first, and ensure all your details are as filled in federal returns. It is easier to file taxes with assistance, but you can file them for free.
Does Maryland have no sales tax?
No, Maryland has a flat 6% sales tax on all the products. However, Maryland organizes a tax-free week to promote local community and markets; this week, residents save a lot of money. Few rules must be followed, and the list of tax exempted items is limited.
Can I file my Maryland tax return online?
Yes, you can file your Maryland taxes online. It makes filing returns much more affordable and accessible.