Baltimore, MD - Aug. 11, 2025  -   Maryland tax-free week, an annual tax holiday that removes the 6% sales tax from clothing and shoes under $100, started Sunday. And while it’s touted as a way to offer families the opportunity to shop at a reduced cost, it also yields a revenue loss for the state.

The comptroller’s office wrote to The Sun in an email that the Maryland Bureau of Revenue Estimates projects that the state will lose $9.3 million in revenue as a result of the tax-free week.

Against the backdrop of the state’s looming budget deficit, the loss in revenue may seem concerning to some, but Benjamin Orr, the CEO of the Maryland Center on Economic Policy CEO, said that in the context of the state budget, “this is a relatively small amount of money.” The nonpartisan think tank researches public policy issues.

Senate Minority Whip Justin Ready, a Republican representing Carroll and Frederick counties, told The Sun that he’s less concerned about lost revenue because tax-free week incentivizes shopping. “I look at everything we make, every decision we make on tax policy in Maryland ought to be, how can we tax as little as possible?” he said.... Read More: FOX45