Comptroller Brooke E. Lierman announced the Shop Maryland Tax-Free Week 2025 on August 5, marking the annual sales tax holiday that begins Sunday, August 10, and runs through Saturday, August 16. During this period, Maryland shoppers can purchase qualifying clothing and footwear priced at $100 or less per item without paying the state’s 6% sales and use tax. The first $40 of backpack purchases also qualifies for the exemption, with no limit on the number of items bought.
The Shop Maryland Tax-Free Week 2025 aims to provide relief amid rising costs, particularly as families prepare for the new school year. “As costs continue to go up, shopping during the sales tax holiday is a great way to keep money in the pockets of hardworking Marylanders and help their budgets go further,” Comptroller Lierman said. “I encourage everyone to shop in Maryland during the sales tax holiday, save money where you can, and support the local businesses that keep our state economy moving forward.”
Cailey Locklair, president of the Maryland Retailers Alliance, highlighted the broader benefits. “Shop Tax Free Week is more than a 6% discount; it is an opportunity to support local businesses, ease the financial burden on families preparing for the school year, and keep hard-earned dollars circulating in our communities,” Locklair said. “By shopping local and tax-free, we invest in our neighborhoods, strengthen our economy, and ensure a bright and affordable future for everyone.”
Eligible items for the Shop Maryland Tax-Free Week 2025 include a range of apparel and footwear essentials. Examples encompass sweaters, shirts, slacks, jeans, dresses, robes, underwear, belts, shoes and boots, all priced at $100 or less per item. The tax exemption applies regardless of how many qualifying products a shopper buys in a single transaction. For backpacks and bookbags, only the first $40 of the purchase price is exempt from sales tax; if a backpack costs more than $40, tax applies to the amount exceeding that threshold. Items that do not qualify include accessories such as jewelry, watches, watchbands, handbags, handkerchiefs, umbrellas, scarves, ties, headbands and belt buckles. Sporting equipment like cleats, golf shoes and ski boots also remains taxable, as do fur clothing, sewing materials and household linens. Shoppers should note that the exemption does not extend to rentals, alterations or items purchased via layaway plans initiated before the week begins. For a full list of eligible and ineligible items, refer to the comptroller’s frequently asked questions document [https://www.marylandcomptroller.gov/content/dam/mdcomp/md/media-kits/Tax-Free-Week-Faqs.pdf].
The Shop Maryland Tax-Free Week 2025 continues a tradition established by state law in 2007, designed to align with back-to-school shopping demands. This timing proves particularly relevant for Southern Maryland families, where public schools in St. Mary’s County open on August 20, Charles County on August 25 and Calvert County around mid-August, depending on specific district schedules. Parents in these areas, familiar with local retailers in places like Lexington Park, Waldorf and Prince Frederick, can stock up on uniforms, casual wear and school supplies like backpacks ahead of the first bell. The event typically draws increased foot traffic to malls, outlets and independent stores, offering a boost during what is often a peak period for retail sales.
Economically, the Shop Maryland Tax-Free Week 2025 serves as a tool to stimulate consumer spending while providing tangible savings. In past years, similar tax holidays have generated millions in additional retail activity across the state. For instance, analyses of sales tax holidays nationwide indicate they can increase purchases by 15% to 20% during the designated period, though some economists argue the events primarily shift timing of buys rather than create net new revenue for the state. In Maryland, the comptroller’s office estimates the week results in forgone tax revenue of about $5 million annually, a figure offset by the economic multiplier effect from heightened local commerce. This impact resonates in Southern Maryland, where small businesses in rural communities rely on seasonal surges to sustain operations. Retail groups emphasize that the holiday encourages shoppers to patronize brick-and-mortar stores over online alternatives, keeping dollars within the state economy. A 2023 report from the Federation of Tax Administrators noted Maryland’s back-to-school holiday as one of 17 states offering such exemptions, focusing on clothing and supplies to aid families [https://taxadmin.org/2025-sales-tax-holidays/].
Earlier in 2025, Maryland lawmakers considered eliminating the tax-free week as part of budget-balancing measures amid fiscal challenges. Proposals included dropping the holiday alongside new taxes on snacks and property transfers, discussed during the legislative session that concluded in April. Ultimately, the Shop Maryland Tax-Free Week 2025 proceeded as planned, reflecting priorities to support consumers and retailers. Comptroller Lierman, who assumed office in 2023, has championed such initiatives to promote fiscal relief, building on her role in overseeing the state’s tax collection and revenue distribution.
For Southern Maryland residents, the Shop Maryland Tax-Free Week 2025 presents practical advantages beyond school prep. With the region’s proximity to major shopping hubs like St. Charles Towne Center in Waldorf and outlets in nearby Prince George’s County, locals can combine trips for tax-free deals with everyday errands. Online purchases qualify if shipped to a Maryland address during the week, but shoppers must confirm retailer participation. Businesses are required to handle the exemption at the point of sale, and consumers can report issues to the comptroller’s office.
As Maryland navigates ongoing economic pressures, including inflation rates that have eased but remain above pre-pandemic levels, the Shop Maryland Tax-Free Week 2025 underscores efforts to make essentials more affordable. The event also ties into broader state programs, such as energy-efficient product tax holidays held in February, which offer similar savings on appliances. By participating, shoppers not only save on immediate needs but contribute to the vitality of local economies in areas like Southern Maryland, where retail sectors support jobs and community services.
