Connecticut Exempts Clothing and Footwear, July 2015

Update, 7.1.2015: Clothing and footwear remain taxable in Connecticut. The exemption for clothing and footwear costing less than $50 is NOT restored on July 1, 2015. See the Connecticut Department of Revenue Services for additional information.

Connecticut sales tax will no longer apply to clothing and footwear costing less than $50 per item (or pair), effective July 1, 2015. The new exemption is a result of legislation enacted in 2014.

Not exempt

The sales tax exemption does not apply to the following:

• “Any special clothing or footwear primarily designed for athletic activity or protective use that is not normally worn except when used for the athletic activity or protective use for which it was designed.
• Jewelry, handbags, luggage, umbrellas, wallets, watches and similar items carried on or about the human body but not worn on the body in the manner characteristic of clothing intended for exemption under [the new legislation].”

Retailers must change point-of-sale systems whenever products are newly exempted or taxed. Implementing automated sales tax Software-as-a-Service simplifies transaction tax management and increases compliance. Learn more.

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