Maryland and Iowa Announce Back-to-School Sales Tax Holidays

Maryland and Iowa have established separate sales tax holidays in August 2026 to reduce costs for back-to-school shoppers. In Iowa, the tax-free weekend occurs on August 7 and August 8, exempting sales and local option taxes on qualifying clothing and footwear priced under $100. This exemption covers items such as shirts, sleepwear, and diapers for both in-store and online purchases, though backpacks and jewelry remain taxable.

Brooke Lierman, the Maryland Comptroller, announced that the Shop Maryland Tax-Free Week will run from August 10 through August 15. Under this initiative, clothing and footwear priced at $100 or less are exempt from sales tax, and the first $40 of backpack or bookbag purchases are tax-free. Items exceeding the $100 threshold continue to be subject to tax.

Lierman stated that the Maryland program is intended to provide real savings for families and an economic boost for local businesses and communities. While both states target clothing and footwear, Maryland specifically includes a partial exemption for backpacks, a category that remains taxable under Iowa's regulations.