People are starting to wind up their family vacations. With that comes returning to school. One of the pros of this time period is that many states offer a tax free week or weekend (that is if your state charges a state sales tax). So why should you care? It saves you money. People are finding it more and more difficult during this time period to make ends meet. Shopping during tax free week or weekend is one of those strategies you can use to save a little money.
Think about this. In Maryland, the sales tax is 6%. This means for every item of clothing you buy; you pay a 6% sales tax. For example, if I bought a shirt for $50, I would pay a state sales tax of $3. So let’s say, I bought $500 worth of clothes for my family during tax free week. I just saved myself $30. Some of you may think “that’s not much” but every little bit helps.
Now each state has its own set of rules when it comes to tax free week or weekend. In Maryland, it is a tax-free week that begins on the second Sunday of August. This year it begins on August 14th and end on August 20th at midnight. It applies to qualifying clothing and footwear under $100. It also applies to the first $40 of a backpack or book bag. If you are looking for a good summary, you may find this information sheet helpful. For detailed information about Maryland’s tax free week, visit the Maryland Comptroller’s website.
So, I mentioned that not all states offer a tax exempt week. That led me to look around on the internet to find out which states offered the incentive. I found two websites containing interesting information about state taxes. I am not endorsing either site. I am just sharing what I found. I encourage you to visit each state’s website for specific information. With that said, this website provides a list of states that offer tax exempt weekends or weeks. The other website I found interesting includes information about sales taxes for each state.
Well that’s my tip for the month. Enjoy the rest of the summer. Take advantages of the time now before you start your busy fall schedule.