The Ultimate Guide for Sales Tax on Clothing

Clothing ranks among the most online shopped items in the USA, with around 51% share in the total online sales, as reported by Statista. Thus making fashion a vital expenditure head for consumers and a source of revenue for businesses. And as either a seller or a buyer, it is important to remember that sales tax on clothing varies by state, with different rates and exemptions.

Sales tax on clothes differs because some states exempt them to a certain degree, although they are tangible personal property. Some states categorize clothes as a necessity and, therefore, fully or partially exempt them from sales tax.

Is there a tax on clothes in your state? Our guide has got you covered. Find out if clothes are taxed, the sales tax rate, and which states exempt sales tax on clothing.

 

States without Sales Tax on Clothing

Seven states exempt sales tax on clothing. These states are Massachusetts, Minnesota, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont. See the table below for more information.

In addition to these states, five states: Alaska, Delaware, Montana, New Hampshire, and Oregon, don’t charge any state sales tax for any items.

 

List of US States and their Sales Tax on Clothing

Clothing sales tax rates vary significantly among different states. There are also variations in the sales tax exemptions on clothes in different states.

Note: Sales tax regulations keep changing frequently. Bookmark this table to keep yourself updated about the latest developments regarding sales tax on clothing.

STATE IS CLOTHING TAXABLE? SALES TAX RATE EXEMPTIONS (if any) Alabama Yes 4% Alaska Not applicable 0% Alaska’s state-wide sales tax rate is 0% Arizona Yes 5.60% Arkansas Yes 6.50% California Yes 7.25% Exemptions allowed for (1) new children’s clothing sold to nonprofit organizations for free distribution to elementary school children and (2) used clothing sold by certain thrift stores benefiting the chronically ill. Colorado Yes 2.90% Connecticut Yes 6.35% Clothing and footwear that costs more than $1,000 is subject to the luxury goods tax. Certain exemptions apply. Delaware Not applicable 0% None. There is no sales tax in this state Florida Yes 6%  Georgia Yes 4% Hawaii Yes 4% Idaho Yes 6% An exemption applies to purchases of clothes and footwear by nonsale clothiers that provide free clothes to the needy. Illinois Yes 6.25% Indiana Yes 7% Iowa Yes 6% Kansas Yes 6.50% Kentucky Yes 6% Louisiana Yes 4.45% Maine Yes 5.50% Maryland Yes 6% Massachusetts NO n/a The exemption is limited to clothing and footwear costing $175 or less. Specific clothing and footwear designed for athletic activity or protective use are taxable. Taxable items’ sales tax rate is 6.25%. Michigan Yes 6% Minnesota NO n/a Accessories, most protective equipment, sports and recreational articles, and fur clothing are taxable. Taxable items’ sales tax rate is 6.88%. Mississippi Yes 7% Clothing, footwear, and accessories used as wardrobes in the production of motion pictures are exempt. Missouri Yes 4.225% Montana Not applicable 0% None. There is no sales tax in this state Nebraska Yes 5.50% Nevada Yes 6.85% New Hampshire Not applicable 0% None. There is no sales tax in this state New Jersey NO n/a Fur clothing, accessories, sport or recreational or protective equipment are taxable. Protective equipment is only exempt when purchased for the user’s daily work and worn as a work uniform. Taxable items’ sales tax rate is 6.63%. New Mexico Yes 4.875% New York NO n/a The exemption is limited to clothing and footwear costing less than $110 per item or pair. Clothing and footwear costing $110 or more per item or pair are taxable. Taxable items’ sales tax rate is 4%. North Carolina Yes 4.75% Separately stated alteration charges in connection with the sale of clothing are exempt. North Dakota Yes 5% Ohio Yes 5.75% Narrow exemption for protective clothing used exclusively in a regulated manufacturing area. Oklahoma Yes 4.50% Oregon Not applicable 0% None. There is no sales tax in this state Pennsylvania NO n/a Accessories, fur articles, ornamental and formal wear, and sports clothing are taxable. Taxable items’ sales tax rate is 6%. Rhode Island NO n/a Accessories and special clothing designed primarily for athletic or protective use are taxable. The clothing exemption only applies to $250 of the sales price per item. Taxable items’ sales tax rate is 7%. South Carolina Yes 6% Certain protective clothing required for working in a clean room environment is exempt. South Dakota Yes 4.50% Tennessee Yes 7% An exemption applies to used clothing sold by certain nonprofit organizations. Texas Yes 6.25% Utah Yes 4.85% Vermont NO n/a Clothing accessories or equipment, protective equipment, and sports or recreational equipment are taxable. Taxable items’ sales tax rate is 6%. Virginia Yes 4.30% Exemptions apply to certain protective clothing furnished to employees engaged in research activities, mining, and manufacturing; and foul-weather clothing worn by commercial watermen. Washington Yes 6.50% West Virginia Yes 6% Wisconsin Yes 5% Wyoming Yes 4%

*The data included in the table is based on statewide sales tax and does not consider local sales tax rates.

 

Clothing Tax by States – Key Takeaways

Here are some quick takeaways from the “clothing tax by states” table. 

• Of 45 states that impose sales tax, 38 states impose sales tax on clothing. 
• Alaska has no state sales tax, but many jurisdictions impose local sales tax on clothing and footwear. 
• Massachusetts and Rhode Island only tax the amount exceeding the exemption limit. For instance, if a clothing item costs $300 in Rhode Island, you only have to pay tax for the additional $50 and not the total price of $300.

 

Clothing Sales Tax Holidays

Some states do not exempt tax on clothing but offer clothing sales tax holidays that may last from several days to weeks. Take note that sales tax holidays vary annually.

Most clothing tax holidays happen from July to August for the back-to-school season. Here’s the list of states offering 2024 tax holidays on clothing:

• Arkansas
• Connecticut
• Florida
• Iowa
• Maryland
• Mississippi
• Missouri
• New Mexico
• Ohio
• Oklahoma
• South Carolina
• Tennessee
• Texas
• West Virginia

 

Do online sellers need to collect clothing tax?

Yes, online sellers must collect and remit sales tax on clothing if they have met nexus in the state.

 

I sell fashion and I need help!

There is always room for learning when it comes to sales tax. As an online seller, keeping a record of everything by yourself can be challenging, so you should consider outsourcing this complex business aspect. TaxHero covers everything from determining nexus to identifying the taxability of your goods.

The regulations and laws are often changing, and you must stay updated. TaxHero is an excellent solution, offering its all-inclusive, full-stack services to help online businesses with all sales tax matters. Schedule a chat with our CEO and learn how we can help you today.