From August 23 through August 27, qualifying clothing and footwear sold in Maryland and priced at $100 or less will be exempt from Maryland's 5% sales and use tax. The five-day Sales Tax Holiday event gives Maryland shoppers a unique, money-saving incentive to shop in state for back-to-school, summer clearance, fall fashion, and other purchases, while helping Maryland merchants compete with retail markets in neighboring states.

Certain clothing and footwear designed to be worn on or about the human body will be eligible for the sales tax exemption. Qualifying apparel include belts, coats, jackets, pants, shoes, socks and sweaters. Special clothing or footwear designed primarily for protective use and not for normal wear, such as football pads, do not qualify. In addition, accessory items such as handbags, jewelry, ties, and umbrellas do not qualify and remain taxable.

Each qualifying article of clothing or footwear selling for $100 or less will be exempt, regardless of how many items are sold at the same time. For example, two $60 sweaters sold at the same time are both exempt, even though the total purchase price is more than $100.

Items that cost more than $100 will be taxable, even if they would otherwise be eligible. The first $100 of a more expensive item is not tax-free. If the item costs $110, sales tax is due on the entire $110.