Navigating New York's Sales Tax Exemptions on Clothing and Footwear

Certain clothing, footwear, and items used to make or repair exempt clothing sold for less than $110 per item or pair are exempt from the New York State 4% sales tax, the local tax in qualifying localities, and the 3/8% Metropolitan Commuter Transportation District (MCTD) tax within exempt areas. The MCTD covers the City of New York and the counties of Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and Westchester. 

Key Points to Remember: 

• Clothing and footwear sold for $110 or more per item or pair are not eligible for the exemption. In such cases, the entire sale—including the first $110—is taxable. For example:
  • If an item costs $109, it qualifies for the tax exemption.
  • If an item costs $111, the entire $111 is taxable.

 New York retailers, particularly those in New York City and other exempt counties, should absolutely factor this exemption into their pricing strategies. Pricing items just below the $110 threshold could drive sales by allowing customers to take advantage of the tax exemption. This approach can make your products more competitive and attractive to price-sensitive shoppers. 

• The following jurisdictions in New York provide a full exemption from all state and local taxes (including the MCTD tax) on eligible clothing and footwear costing 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
  • Tioga County
  • New York City

For the remaining counties in New York State, eligible clothing and footwear under $110 are subject only to the county-specific local tax. 

Beyond New York:

Several other states also offer sales tax exemptions for certain clothing purchases, including Massachusetts, Minnesota, New Jersey, Pennsylvania, Rhode Island, Vermont, and Alaska. The criteria for exemptions in these states can vary based on price, type of clothing, or other factors. Additionally, four states—Delaware, Montana, New Hampshire, and Oregon—do not impose sales tax at all. 

Need Assistance?

Sales tax compliance can be complex, especially with varying rules and exemptions. Sales Tax Rx provides comprehensive compliance services to ensure your business stays on top of its obligations. Contact us today for expert guidance tailored to your needs.