If you need to shop for clothes for back-to-school or any other event, hold off until at least Sunday and save 6 percent on your purchases.
Maryland’s Tax-Free Week, which the state doesn’t collect the 6 percent sales tax, starts Aug. 12th and runs through Saturday, Aug. 18th.
The tax break applies to clothes and shoes, provided each items costs no more than $100. The tax break also doesn’t apply to jewelry, watches, handbags and certain other accessories. You can check which items will still be taxed, or exempt, on the Maryland Comptroller’s website.
The comptroller also put out this humorous video to encourage consumers to take advantage of the sales tax holiday.
Update: Reader Matt Courchene-Roy wrote to correct my math:
"Technically, people will actually be saving about 5.66% off their purchases. They'll be avoiding the 6% sales tax, but they won't technically be saving 6% off their purchase. (A purchase of $1 that would normally be $1.06 after tax would come down to $1, saving someone $0.06 off a $1.06 original price. Divide 0.06 by 1.06 to get the %, 5.66%.)
"A simple way to think of this is to imagine that sales tax is 50%. A purchase of a $100 item would have a final cost of $150. If you were to save 50% off of that final price, you would be down to $75, instead of the original price of $100. Eliminating the sales tax and dropping from $150 to the original price of $100 would actually result in savings of 33.3%, compared to what the price would have been with sales tax.
"It is really just a matter of phrasing. If one says that people will be able to avoid the 6% tax or that people won't be subject to the 6% tax, that would be accurate. But people won't technically be saving 6%!"
So whatever he says, readers. Shop during tax-free week and save 5.66%!