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!
or 
. For the best
deals, check out the ones I found from Amazon.com. The binder is the same one I
use but I am a bit more extreme than most!