MD Tax-Free Week: When To Save On Back-To-School 2022

MARYLAND — As you get ready for school to start again, Maryland parents can save money on back-to-school items during this year’s sales tax holiday, scheduled for Aug. 14-20.

Sales tax holidays are intended to help families save money on school essentials like supplies, clothes, shoes, backpacks and more.

During Maryland's tax-free week, any single qualifying article of clothing or footwear priced at $100 or less — regardless of how many items are purchased in the same transaction — will be exempt from the state's 6 percent sales tax. The first $40 of any backpack purchase is also tax free.

“Whether you’re looking to freshen up your wardrobe for the cooler months ahead or need to get your kids the latest styles for the new school year, this end-of-summer tradition is a great time to shop, save and support Maryland businesses,” said Comptroller Peter Franchot in a news release.

The National Retail Federation notes the holidays are especially important during a year when more families are tightening budgets because of inflation.

This year, 18 states will hold sales tax holidays, according to Bloomberg Tax, just one state shy of the record set in 2010.

While school uniforms, shirts, shoes, flip-flops, athletic socks, caps and hats, bathing suits, gloves, mittens and underwear are tax exempt, you might be surprised that fishing vests, pajamas and bathrobes are also exempt.

Many medical items such as adult and baby diapers (both disposable and cloth) and braces are exempt, along with golf clothes, bowling shoes and shirts, martial arts uniforms and sports uniforms.

Among the items that will still be taxed are diaper bags, bow ties, fishing boots and bike helmets.

The full list of which items are free of sales tax, and which are not, is on the state website.

Even though the Maryland tax holiday falls during the back-to-school rush, there are some school-related items that aren't included in the list of exempt purchases. The folks at Offers.com suggest parents make the most of tax-free shopping by remembering a few tips:

• Steer clear of taxable lunchboxes, textbooks and school supplies, unless they're on sale. Focus your spending on non-taxable clothing and shoes instead.
• Stock up on diapers and baby clothes now, if you need them – you're going to use them later.
• No rainchecks accepted — if you buy an item after tax-free week using a raincheck, you'll still owe tax on that item.
• Shop for the whole family. Though it's a great time to pick up fall and winter items for the kids, the tax holiday also extends to adults.

Total back-to-school spending in the United States is expected to match 2021’s record high of $37 billion, according to the National Retail Federation. Families with children in elementary through high school plan to spend an average of $864 on school items, approximately $15 more than last year.

Back-to-school spending has increased dramatically since the onset of the pandemic, as families adjusted to changes from virtual and hybrid learning. Compared to 2019, back-to-school shoppers are expected to spend $168 more on average, according to the National Retail Federation.

According to the state comptroller, the Maryland legislature established the tax-free week as an annual observance from the second Sunday of the month to the subsequent Saturday.