Maryland Annual Tax-Free Week: Eligible Items and Exclusions

Maryland’s tax-free week in 2026 runs from Sunday, August 9 through Saturday, August 15. During that window, any single piece of clothing or footwear priced at $100 or less is exempt from Maryland’s 6% sales tax, and the first $40 of a backpack or bookbag purchase is also tax-free.¹

When the Exemption Starts and Ends

The tax-free period begins at 12:01 a.m. on Sunday, August 9, 2026 and ends at 11:59 p.m. on Saturday, August 15, 2026.² It covers both in-store and online purchases made during that window. Maryland has held the event every August since 2010.¹

What You Can Buy Tax-Free

Clothing and Footwear Under $100

Any single item of clothing or footwear priced at $100 or less is exempt. The cap is per item, not per receipt, so there is no limit on how many qualifying pieces you can buy in one trip. Shirts, jeans, dresses, underwear, belts, shoes, and boots all count as long as each piece rings up at $100 or less.³

The threshold is a cliff, not a running discount. If an item costs even a dollar over $100, the entire price is taxable. A $101 shirt is taxed on the full $101, not just the amount above $100.¹

Backpacks and Bookbags

Backpacks and bookbags get a partial exemption. The first $40 of the purchase price is tax-free, and you pay 6% only on the amount above that.¹ A $55 bookbag is taxed on $15.³

What Still Gets Taxed

The exemption is narrower than shoppers usually expect. Several everyday categories stay fully taxable.

Accessories such as jewelry, watches, handbags, umbrellas, scarves, ties, headbands, and belt buckles. Backpacks are the only accessory-type item with any exemption.¹
Protective and athletic gear including football pads, helmets, shin guards, and cleats.⁴
Materials used to make or repair clothing, including fabric, thread, yarn, buttons, and zippers.⁴
Alteration charges. Even if the pants are exempt, a separate cuffing or hemming charge is taxed.⁴
Sets sold at one price. Unless each piece is priced separately, the set’s full price decides eligibility, and anything over $100 is taxable in full.³

School supplies, electronics, and books also stay taxable. The exemption covers clothing, footwear, and backpacks or bookbags only.

How Coupons and Discounts Affect the Price

The type of discount matters. A store discount or retailer coupon reduces the taxable price, so 10% off a $110 blouse brings it to $99 and puts it under the threshold. A manufacturer coupon does not reduce the taxable price, because the retailer is reimbursed by the manufacturer. That same $110 blouse with a $10 manufacturer coupon is still treated as a $110 sale and stays taxable.⁴

“Buy one, get one” promotions work the same way. Retailers cannot average the prices to slip both items under $100. A $150 pair of pants sold with a second free pair is still taxed at $150.

Online Orders, Layaway, Rain Checks, and Returns

Online purchases qualify if you pay for and order the item during the tax-free week and the retailer accepts it for immediate shipment. The package does not need to arrive before the week ends. Backordered items do not qualify, and neither do orders where the retailer waits until after the week to charge your payment method.³

For layaway, the date you enter the layaway agreement controls. If you put an eligible item on layaway during the tax-free week, it stays exempt even though you finish paying and pick it up later.⁴

Rain checks work by the purchase date, not the issue date. A rain check handed out during the tax-free week does not carry the exemption if you redeem it later. But using an older rain check during the tax-free week does qualify.⁴

Exchanges for the same item in a different size or color owe no additional tax, even after the week ends. If you return a tax-free item and put the store credit toward something different after the exemption period, that new purchase is taxable.⁴

The Separate Tax-Free Weekend in February

Maryland runs a second tax-free period, Shop Maryland Energy Weekend, over Presidents’ Day weekend each February. It covers ENERGY STAR-labeled appliances and solar water heaters with no price cap, and it is separate from the August event for clothing and backpacks. In 2026, it runs from Saturday, February 14 through Monday, February 16.⁵

1
Maryland General Assembly. Maryland Tax-General Code 11-228
2
Comptroller of Maryland. About Comptroller of Maryland Programs
3
Comptroller of Maryland. Frequently Asked Questions About Shop Maryland Tax-Free Week
4
Maryland Register. COMAR 03.06.01.37 Tax Free Week for Qualifying Clothing and Footwear Items
5
Comptroller of Maryland. Shop Maryland Energy Weekend Set for February 14 Through 16