Thursday, August 12, 2021

Maryland's Tax Free Week ALMOST OVER!

 Maryland Tax-Free Week Underway Until Saturday, August 14, 2021.

What is the tax rate on MD?
6.00%. The Maryland state sales tax rate is 6%, and the average MD sales tax after local surtaxes is 6%.
From Aug. 8 to Aug. 14, shoppers can buy popular back-to-school items without paying the state sales tax of 6%.
What's included in Maryland's tax-free week? Maryland waives sales tax on the following items:
Apparel and footwear ($100 or less per item).
The first $40 of a backpack or bookbag.
Note that there are exceptions within these categories. Specific athletic attire (such as football pads) and accessories (such as purses and jewelry) are still taxable.
There are also plenty of pleasant surprises -- items that you may not think of as clothing that are tax free. For example, diapers are tax free during the week.
What makes Maryland's tax-free week unique among states is that the waived tax applies to the first $40 of a backpack. If you buy one that's more expensive, you still get a little tax break -- $2.40 to be precise. When it comes to clothing, note that the tax exemption is made on a per-item basis. So you could buy thousands of dollars of clothing, and it will be tax exempt, as long as each item costs $100 or less.
Does Maryland tax-free week include online purchases?
Yes. However, you must order and pay for the item (and have the order accepted by the merchant) during the tax-free window.
Layaway purchases are also tax free, as long as you place the item on layaway during Maryland tax-free week.
Using coupons during Maryland tax-free week
If a retailer's coupon brings the price of a more expensive item to $100 or less, that item will be tax free. For example, say you want to buy a coat that's $105. The retailer offers a coupon or discount that brings the price to $95. You won't have to pay tax.
Manufacturers' coupons are different, however. Retailers are reimbursed for those after the purchase. So these coupons would not lower the price for tax-waiving purposes. In other words, that $105 coat would still be taxed even if you have a manufacturer coupon for $10 off.

For a list of tax-free items click on this link: List_of_Taxable_and_Exempt_Items.pdf (marylandtaxes.gov)




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