Shop in stores or online and save a few bucks during the annual tax-free sale.

Every year, the state imposes a tax holiday on clothes, shoes, and backpacks so Maryland families can save money on their back-to-school purchases. Even though most of the children in the state will be attending school virtually, they still will need new clothes. Maryland Tax-Free Week 2020 will begin on Sunday, August 9, and run through Saturday, August 15. The sale applies to clothing purchased both in the state and online, with some restrictions. In addition, the Maryland Retailers Association is holding a contest for $1,500 in college scholarships during the tax-free week.

Shop Maryland Tax-Free Week starts on the second Sunday of August every year and gives Marylanders the opportunity to save six percent on eligible shoes, clothing, and backpacks. The state has a complete list of the items that qualify on the Maryland Comptroller’s website. Generally, each piece of clothing priced under $100 and backpacks under $40 qualify, more details are available at marylandtaxes.gov. Some of the items that don’t qualify are sports pads, helmets, bandanas, duffle bags, and ladies purses. Dry cleaning service is included, so this is a good time to get it done. You must be able to pick it up during the tax-free period. Any online purchases must be paid for during the tax-free period to qualify if they are not shipped within the eligible time frame.

Maryland Tax-Free Week Scholarship Graphic

Courtesy Comptroller of Maryland

If you’re attending a Maryland college, university, or trade school, you are eligible to enter the Maryland Retailers Association scholarship contest. All you have to do is write a letter detailing how you helped a Maryland business stay in operation during the pandemic. Email your entry to shopmdtaxfree@marylandtaxes.gov or post your response on social media using the hashtag #SHOPMDTAXFREE. First place is a $1000 scholarship and second place is a $500 scholarship. Good luck!