Is Clothing Taxable? Sales Tax on Clothing by State

Is clothing taxable?

Clothing is taxable in 39 of the 46 jurisdictions that levy a statewide sales tax. Four states exempt clothing with no price limit, three exempt it only below a per-item price, and five states have no state sales tax at all.

For an apparel brand shipping nationwide, that means at least four different rules on the same item. A $120 jacket is exempt in Minnesota, taxed on its full price at the state level in New York, exempt in Massachusetts, and taxed at the general rate in California. Each state also defines which items count as clothing, so accessories, costumes, and athletic gear can fall outside an exemption.

Which states exempt clothing from sales tax?

Minnesota, New Jersey, Pennsylvania, and Vermont exempt everyday clothing from sales tax with no price limit. A seller shipping a $400 coat to any of these four states collects no state sales tax on it.

Each exemption has its own carve-outs:

• Minnesota exempts all apparel suitable for general use. Accessories, sports or recreational equipment, protective equipment, and fur clothing are taxable.

• New Jersey exempts clothing and footwear, including costumes. Fur clothing has been taxable since January 1, 2009, and accessories and sports equipment are taxable.

• Pennsylvania exempts clothing but taxes accessories, formal day or evening apparel, fur articles, and sporting clothing.

• Vermont exempts clothing, costumes, and formal wear, and taxes accessories, protective equipment, and sport or recreational equipment.

Alaska, Delaware, Montana, New Hampshire, and Oregon have no state sales tax, so no clothing rule applies at the state level. Local sales taxes can still apply in Alaska. Delaware charges sellers a gross receipts tax, which is a business tax and is not collected from customers as sales tax.

Which states exempt clothing only below a price threshold?

Massachusetts, New York, and Rhode Island exempt clothing up to a per-item price and tax items above it. The three thresholds are $175, $110, and $250, and each state treats the amount above its threshold differently.

Massachusetts also excludes clothing designed for athletic or protective use from its exemption, according to the state's tax expenditure budget. New York's exemption excludes costumes, rented formal wear, athletic equipment, and protective devices such as motorcycle helmets, per Publication 718-C.

How do clothing price thresholds work?

Clothing thresholds apply item by item, so the order total never decides whether an item qualifies. Rhode Island's regulation gives the standard example: five shirts at $60 each total $300, and all five are exempt because each shirt is under $250.

The calculation above the threshold is where states split. Take one item priced just over each state's limit:

• In Massachusetts, a $200 jacket is taxed on $25, the amount over $175.

• In Rhode Island, a $275 suit is taxed on $25, the amount over $250. The Division of Taxation's own example puts the tax at $1.75.

• In New York, a $110 pair of shoes is taxed on the full $110. One dollar below the threshold, the same pair is exempt from the 4% state tax.

A tax engine that applies one "excess only" formula to all three states undercollects in New York on every item at $110 or more. One that applies New York's full-price rule everywhere overcollects in Massachusetts and Rhode Island.

Do local sales taxes apply to clothing in states that exempt it?

Local sales tax can apply to exempt clothing in New York, and the answer depends on the county or city of delivery. New York's exemption covers the 4% state tax, and local tax still applies unless the county or city elects the exemption.

A $90 sweater shipped to a New York locality that has elected the exemption carries no sales tax. The same sweater shipped to a locality that has not elected it is taxed at the local rate only. Localities can change their election only on March 1 each year, and Publication 718-C lists which localities exempt clothing and which do not.

In Massachusetts, New Jersey, and Rhode Island there is no local sales tax to consider, so the state rule decides the result. In Alaska, which has no state sales tax, local sales taxes can apply and each borough or city sets its own exemptions.

Are accessories, costumes, formal wear, and protective equipment treated like clothing?

Accessories are taxable in all four states that exempt clothing without a price limit, while costumes, formal wear, and protective equipment vary by state. A handbag, a watch, or a piece of jewelry is taxable in Minnesota, New Jersey, Pennsylvania, and Vermont even though a dress bought in the same order is exempt.

Sources: Minnesota, New Jersey and New Jersey fur, Pennsylvania, Vermont, New York.

Fur and protective items follow tests, and each test turns on the product itself. Minnesota taxes fur clothing when the fur is worth more than three times the next most valuable component. New Jersey exempts protective equipment only when it is bought for the user's daily work and worn as part of a work uniform. Clothing with a protective quality, such as flame-resistant or reflective apparel, stays exempt in Minnesota if it can be worn for general use.

What does it cost to misclassify clothing?

Misclassifying one $275 suit in Rhode Island produces either a $17.50 overcollection or a $1.75 undercollection. Rhode Island taxes only the $25 above its $250 threshold, so the correct tax at the 7% rate is $1.75, according to the Division of Taxation.

The error scales with volume. A brand that sells 2,000 suits priced at $275 into Rhode Island in a year and taxes the full price overcollects $35,000 from customers. If it treats the same suits as exempt, it undercollects $3,500, and the state can assess that amount against the seller even though the seller never collected it.

Overcollection carries its own cost. Tax collected from customers must be remitted or refunded, so a full-price error becomes a refund and amended-return project on top of the customer complaints.### How can a multistate apparel seller apply the right clothing rule in every state?

The right clothing rule depends on three things on every invoice: what the product is, where the customer receives it, and what that jurisdiction's rules say. A $120 jacket needs a product category that separates it from a $120 handbag, a delivery address that separates Buffalo from Boston, and a rule set that knows New York taxes the full price while Massachusetts exempts it.

Taxwire's tax engine calculates tax on each invoice from those three inputs: product type, customer location, and jurisdiction rules. Calculation runs directly inside QuickBooks Online, Stripe, NetSuite (SuiteTax), Campfire, and Rillet, so each state's rule is applied when the invoice is created. For Shopify stores, Taxwire ingests transactions for filing, and Shopify's own calculation stays in place at checkout. Sellers without a supported integration can send transaction data by CSV upload.

Filing is a managed service. Taxwire prepares and submits returns in every state where you collect, and handles new registrations when you cross a threshold in another state. For sellers who find they have been undercollecting, Taxwire files prior-period returns and runs voluntary disclosure agreements, which typically cover a three to four year lookback. Implementation takes one week, and support responds in under an hour.

What is the clothing sales tax in each state?

Thirty-nine jurisdictions tax clothing at the general rate, seven exempt it in full or below a price threshold, and five have no state sales tax. The rule for each state and Washington, DC is below.

Rates and rules as of September 2026.

Many states that tax clothing also run short annual sales tax holidays that suspend the tax on qualifying items.

Frequently asked questions

Is formal wear taxable?

Formal wear is taxable in Pennsylvania and exempt in Minnesota, New Jersey, and Vermont. Pennsylvania's regulation taxes formal day or evening apparel such as tuxedos. In New York, bought formal wear under $110 is exempt from the state tax, but rented formal wear is taxable.

Are costumes taxable?

Costumes are exempt in New Jersey and Vermont and taxable in New York. New Jersey has exempted the sale and rental of costumes since October 1, 2005, though separately sold masks and costume accessories are taxable. Vermont lists costumes as exempt clothing, while New York excludes them from its clothing exemption.

Does a clothing threshold apply to the whole order or to each item?

Clothing thresholds apply to each item. Rhode Island exempts five $60 shirts in a $300 order because each shirt is under $250. Massachusetts and New York apply their thresholds per item as well, and New York counts a pair of shoes as one item.

Are shoes treated as clothing?

Shoes are treated as clothing in the threshold states, with the same price limits. New York exempts footwear under $110 per pair from the state tax. Shoes designed for a sport, such as cleats, fall under sports equipment in Vermont and are taxable.

Are accessories taxed in states that exempt clothing?

Accessories are taxable in Minnesota, New Jersey, Pennsylvania, and Vermont. Minnesota defines accessories as items worn on the person or with clothing, and Pennsylvania lists handbags, wallets, umbrellas, and jewelry. A seller in these states needs accessories coded separately from apparel.

Can software apply clothing thresholds automatically?

Yes, a tax engine can apply per-item clothing thresholds automatically when it knows each product's category and the customer's delivery address. The engine has to store each state's rule separately, because New York taxes the full price above $110 while Massachusetts and Rhode Island tax only the excess. Taxwire's tax engine calculates tax per invoice from product type, customer location, and jurisdiction rules, inside QuickBooks Online, Stripe, NetSuite (SuiteTax), Campfire, and Rillet.