Flanked by state and local officials in the center of Greenbelt’s Beltway Plaza Mall, Comptroller Brooke Lierman on Wednesday touted the return of the annual Shop Maryland Tax-Free Week as a way for cash-strapped Marylanders to “save some real money.”
“We know that costs are rising. We know that you paid more for that tank of gas to get here today,” Lierman said as shoppers strolled past. “We know that we have to do everything we can to build a more affordable state.”
That was echoed by Del. Nicole Williams (D-Prince George’s), who said she and her legislative colleagues are on the same page when it comes to rising costs.
“Affordability is definitely top of mind,” Williams said. “We’re hearing every day from our constituents about their concern with inflation, the rising gas prices, and things like that.”
Under the program, Maryland’s 6% sales tax will not be applied from Aug. 9 to Aug. 15 to purchases of clothing and footwear that cost under $100 each. Tax is also forgiven on the first $40 of the cost of a backpack during the week. It does not apply to school supplies or electronics, the biggest category of back-to-school spending.
According to the comptroller’s website, the $100 applies to individual items, not the purchase’s total, and sales tax will be applied to the full cost of any item a cent over that threshold.
“This is a chance for Marylanders to save real money,” Lierman said. “Now … 6% is not really all that much but we know that 6% goes a long way.”
Lierman said there are roughly 870,000 K-12 students in Maryland. The National Retail Federation estimates $424.30 is spent on average on clothing and shoes per year.
“So let’s do a little math,” Lierman said.
Assuming the NRF’s spending estimates do not include sales tax, the exempted 6% would save an average of $25.46 if people did all of their 2026 clothing and shoes shopping during the tax-free week.
“You might need a little extra money for groceries, more money for gas, more money for dinner with their family, or maybe some breathing room in the budget,” Lierman said.
Three people will get a lot more breathing room: The comptroller’s office partnered with the Maryland Retailers Alliance on a contest inviting people to submit a video sharing tips on how to save on school supplies, with prizes of $1,000, $500 and $250 for the winners. Submissions are accepted from Wednesday to Aug. 1.
Besides saving people money, speakers said that tax-free week helps invigorate businesses and the partnership between jurisdictions. Greenbelt Mayor Emmett Jordan said tax-free week brings life to businesses in his community.
“That’s why tax free to me is such an exciting time. It’s cheers for residents to save, but also cheers for the tools to show up for the businesses that support this community,” he said.
State lawmakers approved the first sales tax holiday as a one-off in 2001, and sporadically after that until 2010, when it became an annual event. Since then, it’s been held annually on the week beginning on the second Sunday of August.
“Our state families would save millions and millions of dollars,” Lierman said about this year’s tax holiday. “Real savings for families, real revenue for businesses, and real economic boost for our communities. That’s why this week matters.”