Clothing tax state by state

This post has been updated. It was originally published in February 2020.

Americans spend a lot on apparel every year, and increasingly, they spend it online. Revenue from fashion retail ecommerce is expected to exceed $264 billion in 2025 in the Americas, according to Statista. When you include in-store sales, the apparel market contributes a healthy amount of sales tax revenue for the states that tax apparel.

But that’s not every state.

While sales tax applies to clothing in most states, there are a few states that don’t tax clothing. A number of states tax some clothing but not all clothing, and several states that generally tax clothing provide a tax exemption for certain clothing sales. And here’s something even more challenging for businesses: Roughly 20 states that typically tax clothing provide temporary sales tax exemptions for qualifying apparel during sales tax holidays or tax-free weekends. 

This blog describes sales tax on clothing by state. Buckle up and read on for details.

There’s no sales tax on clothing or clothing accessories in the states with no sales tax: 

• Delaware
• Montana
• New Hampshire
• Oregon

Although there’s no statewide sales tax in Alaska either, clothing is subject to local sales taxes in some parts of the state. More than 100 cities and boroughs in Alaska have local sales and use taxes, and many of these jurisdictions tax clothing, clothing accessories, and footwear. 

Alaska, Massachusetts, Minnesota, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont tax some clothing sales but not others. In general, the sales tax exemptions hinge on the price, the type of clothing, or another factor. 

A couple of these states provide a partial tax exemption for clothing, meaning only a portion of the sales price is subject to sales tax.

Alaska is a special case because, as noted above, it has no statewide sales tax but allows local taxes. So, while clothing is exempt in some parts of the state, it’s generally subject to local sales tax in Juneau, the Kenai Peninsula Borough, Nome, and dozens of other cities and boroughs. 

A few jurisdictions in Alaska periodically provide a sales tax holiday for clothing.

Massachusetts is one of the trickier states when it comes to clothing tax. While clothing and footwear priced $175 or less are generally exempt, Massachusetts sales tax applies to clothing or shoes priced more than $175. However, sales tax only applies to the amount over $175. 

So for example, with the current tax rate of 6.25%, the tax on a $200 sweater would be $1.56 because only $25 of that $200 is subject to tax.

Note that apparel designed solely for athletic or protective use is taxable no matter the sales price, as are accessories such as handbags and jewelry. Examples of taxable apparel include athletic uniforms, bowling shoes, and cleated athletic shoes. There’s a list of exempt and taxable apparel and fabric goods on the Massachusetts Department of Revenue website.

Massachusetts has an annual sales tax holiday for clothing.

Clothing suitable for general use is exempt from Minnesota sales and use tax, but a few categories of clothing are taxable. Minnesota sales tax applies to the following products:

• Clothing accessories
• Fur clothing
• Pet clothing
• Protective equipment
• Sports or recreational equipment

Although most clothing is tax exempt, sales of clothing for delivery by motor vehicle in the state are subject to the Minnesota retail delivery fee when the transaction equals $100 or more. (Certain retailers are exempt from the retail delivery fee.)

Minnesota sales tax applies to dog sweaters.

As in Minnesota, most articles of clothing and footwear designed for human use are exempt from New Jersey sales and use tax. 

However, the following items are subject to sales tax:

• Accessories
• Equipment
• Fur clothing
• Protective equipment (unless necessary for the daily work of the user)
• Sports or recreational equipment

The New Jersey Division of Taxation offers a list of taxable and exempt clothing and footwear in its Sales Tax Guide, along with some helpful tidbits. For example, it notes that while bowling shoes are taxable, bowling shirts are exempt “if suitable for ordinary street wear.”

New York sales tax on clothing is also tricky, particularly with respect to local sales tax.

As a general rule, New York state sales tax does not apply to most clothing and footwear sold for less than $110 per item/pair, or to items used to make or repair exempt clothing and footwear. 

However, New York state sales and use tax does apply to clothing priced $110 or higher. Unlike in Massachusetts, the entire sales price is taxable when the price is $110 or above, not just the amount exceeding $110.

The following products are subject to New York state sales tax no matter their price:

• Athletic equipment and protective devices
• Costumes or rented formal wear
• Items made from jewels, metals, pearls, or precious or semiprecious stones that are used to make or repair exempt apparel
• Items used to make or repair taxable apparel

Additionally, the New York sales tax exemption does not apply to clothing and footwear for dogs, cats, chickens, or dolls. It’s only for clothing and footwear worn by humans.

Local sales tax in New York 

Most local governments in The Empire State apply local sales tax to apparel, including clothing and footwear that costs less than $110.

However, some local governments in New York exempt eligible clothing priced less than $110 from the local sales and use tax. As of November 2024, the following jurisdictions exempt eligible clothing priced less than $110:

• Chautauqua County
• Chenango County (outside the city of Norwich)
• Columbia County
• Delaware County
• Dutchess County
• Greene County
• Hamilton County
• Monroe County 
• Putnam County (the exemption will expire on March 1, 2026)
• Tioga County
• New York City 

Apparel that qualifies for the state sales tax exemption is also exempt from the Metropolitan Commuter Transportation District (MCTD) tax, where applicable. 

In all other jurisdictions in New York state, local sales tax applies to clothing and footwear even if it costs less than $110. Rates range from 1.5% in Norwich to 4.875% in Yonkers.

Although most “wearing apparel” is exempt from Pennsylvania sales and use tax, some clothing is subject to sales tax.

The following products are taxable in Pennsylvania:

• Articles made from real, imitation, or synthetic fur, “where the fur is more than three times the value of the next most valuable component material”

• Formal day or evening apparel

• Sporting apparel and goods normally worn or used when engaged in sports

A detailed list of taxable and exempt clothing and accessories can be found at the Pennsylvania Department of Revenue website (see the Retailer’s Information Guide).

Clothing and footwear “intended to be worn or carried on or about the human body” are generally exempt from Rhode Island sales and use tax if “suitable for general use.” However, the exemption is capped at $250 per item.

Unlike in New York, where crossing the $110 threshold transforms an item from entirely exempt to entirely taxable, Rhode Island sales and use tax applies only to the amount above the $250 cap. For example, if a sweater costs $275, sales tax applies only to $25. In this way, Rhode Island resembles its neighbor, Massachusetts.

The Rhode Island Division of Taxation provides a nifty cheat sheet to help retailers calculate the tax due. 

Accessories such as belt buckles, briefcases, hair notions, handbags, and jewelry are taxable no matter their price, as are the following items:

• Costume masks when sold separately
• Protective equipment
• Sports or recreational equipment

Most clothing and footwear is exempt from Vermont sales and use tax. However, sales and use tax applies to clothing accessories and equipment.

Clothing is generally subject to sales tax in almost 40 states, if you include Puerto Rico and Washington, D.C. These are:

For the most part, the general sales tax rate applies to clothing, clothing accessories, and footwear in these states. In addition to the state sales tax, the general sales tax rate includes local sales taxes in the many local jurisdictions with a local sales tax.

Yet there are some exceptions to this rule, including the following.

Connecticut imposes a 7.75% luxury tax on sales of apparel, handbags, luggage, umbrellas, wallets, and watches with a sales price exceeding $1,000. Jewelry with a sales price of more than $5,000 is also subject to the 7.75% sales tax rate. This is significantly higher than the general state sales tax rate of 6.35%.

California, Idaho, South Carolina, and Virginia exempt certain tangible personal property, including clothing, sold to nonprofit organizations for distribution to the needy.

Mississippi exempts apparel used in the production of motion pictures.

Alabama, Arkansas, Connecticut, Maryland, and many other states provide sales tax holidays for clothing. These tax-free periods can last for a day, a weekend, a week, or even longer.

Every year, roughly 20 states provide one or more sales tax holidays during which eligible clothing and footwear is sales tax exempt. 

In 2024, the following states had sales tax holidays for clothing: Alabama, Alaska (some jurisdictions only), Arkansas, Connecticut, Florida, Iowa, Louisiana, Maryland, Massachusetts, Mississippi, Missouri, Nevada, New Mexico, Ohio, Oklahoma, Puerto Rico, South Carolina, Tennessee, Texas, Virginia, and West Virginia.

Details vary by state. For example, qualifying hunting apparel is sales tax exempt during the Second Amendment tax free weekends in Louisiana and Mississippi, but most other clothing isn’t tax exempt. School uniforms and footwear qualify for Puerto Rico’s two back-to-school tax-free weekends. And clothing priced $2,500 or less is eligible for the annual Massachusetts tax-free weekend.

Most sales tax holidays set price caps for the temporary exemption. For more details, read our 2024 sales tax holidays blog post.

If you sell clothing online, you may be required to register then collect and remit sales tax in the states where you have customers. Whether you’re required to do so depends on whether you have nexus — a connection significant enough to establish a sales tax obligation with the jurisdiction. 

There are several ways for a business to establish nexus: 

• Economic activity in the state (economic nexus)

• Physical presence in the state (this can include employees or inventory)

• Referrals originating in the state

• Ties to affiliates in the state

Every state with a statewide sales tax enforces economic nexus and physical presence nexus laws, as do roughly 50 jurisdictions in Alaska (for local sales taxes). The slightest physical connection to a state can give an out-of-state seller physical presence nexus. For economic nexus, all states provide an exception for businesses whose sales activity in the state is beneath a certain economic nexus threshold.

See our sales tax nexus guides for more detailed information.

Keep in mind that if you sell clothing internationally, you need to comply with applicable tax laws in effect where your customers reside. 

Companies based in Canada, Mexico, Europe, and other countries that sell clothing to consumers in the United States need to contend with state and local sales taxes in the states where they have sales tax nexus. 

The same is true for U.S. retailers selling clothing to customers in other countries. If you sell and ship clothing into Canada, you may need to charge customers applicable goods and services tax (GST), provincial services tax (PST), and or harmonized sales tax (HST). If you sell to customers in Europe, South America, and many other parts of the world, you need to comply with value-added tax (VAT) requirements.

Value-added tax or VAT is a broad consumption tax assessed on the value of goods and services as they move through the supply chain. Similar to a sales tax, businesses are responsible for collecting it from customers and remitting it to the appropriate tax authorities.

Learn more about VAT and its impact on tax compliance.

Managing sales tax is a big job and, frankly, a thankless task. You won’t get kudos for getting sales tax right, but you can be penalized for getting it wrong. Automating sales tax collection and remittance can help take the weight off your shoulders, so you can focus on more rewarding aspects of your business.