7 Ways to Take Advantage of Maryland Tax Free Week

7 Ways to Take Advantage of Maryland Tax-Free Week

By Wendy Stewart

Each year, during the second full week of August, Maryland has its annual Tax Free Week. Tax Free Week is meant to do a number of things, including giving retailers a boost. Primarily, the state hopes you’ll do a ton of “back to school” shopping during this week in order to avoid the 6% sales tax normally levied.

I love Tax Free Week but there are ways to be strategic and get the most out of your dollar. After all, just saving sales tax is just the beginning. Here’s how to maximize your Maryland Tax Free Week!

1. Know the rules

First of all, you need to know what is and is not tax exempt. For the most part, apparel and footwear under $100 make the list. But if you aren’t sure if a certain item qualifies, the state of Maryland has put together a handy list for you. Print out the list and take it with you along with #2…

2. Make a list

With all of the savings going on, it may be tempting to go wild and shop ‘til you drop. Do that and you’ll bust your budget and desperately waiting for your next payday. Do yourself a favor and make a list. Since tax free week comes before the beginning of school, prioritize uniforms and other school clothing and shoes. Make a detailed list of what you want, where it is available, and the cost. Just like grocery shopping, this will keep your impulse purchases to a minimum.

3. Know your budget

If you just got paid it could be very tempting to spend much of that money on tax free items. Huge mistake. Treat this like a regular line item in your budget and gather your money accordingly. Bonus points if you’ve been saving since last year!

4. Know which local retailers are offering extra deals

Many chain retailers offer just the normal reminder via signage about tax free week. There may even be a hefty number of signs inside of the store to remind and entice you to purchase. I have nothing against Target or Kohl’s but you may find better deals if you shop locally.

Because the businesses have a bit more flexibility and want your business, they may offer special deals for shopping local. For example, you could go and hit up your local chain running store, or you could shop locally at Charm City Run which is offering a great deal this week if you spend more than $100.

5. Remember the coupons and loyalty cards

If you have shopping loyalty cards such as Shop Your Way or store cash like at Kohl’s, now is the time to bring them out. Worried you won’t have any points or cash left for the winter holiday shopping season? The purchases you make this week may just make up for the deficit. Also remember you still have the Labor Day weekend get ahead in shopping and store dollars.

6. Don’t forget the socks and underwear

While you’re busy getting hooked up with uniforms, shoes, and all things tax free, don’t forget the socks and underwear. Usually they are also tax exempt and you’ll thank yourself for stocking up on something you already need. Plus it gives some of you an excuse to head to your nearest Victoria’s Secret!

7. Start saving for next year!

Now the week is over and you’re feeling victorious. You’ve shopped the sales, saved with coupons, and stayed within your budget. What do you do now? Save for next year! Tally up your receipts from the week including any items you didn’t have room for in the budget. Use that total to set your savings goal for the next tax free week. For example, you spent $400 but wanted to spend $600. Take the $600 and divide by 12 months. That gives you $50 per month you know you’ll need to save for next year. It helps to save monthly in a separate account so you can be sure to avoid spending the money beforehand.

Well, that’s it - my seven tips for making the most of Maryland Tax Free Week. Happy shopping and leave tales of your spoils of war below!