Clothing and footwear in New York are exempt from the state’s 4% sales tax when each item costs less than $110. Whether you pay anything at all depends on where you shop: in New York City and some counties, qualifying items are completely tax-free, while much of the rest of the state still charges a local tax of 3% to 4.75%. Any single item priced at $110 or more is taxed at the full combined rate, which reaches 8.875% in New York City.
The $110 Per-Item Rule
The exemption applies to each individual item, not to your total bill. Buy three shirts at $50 each and all three qualify, even though you spent $150 at the register. Buy one $110 jacket and the whole price is taxable, because that single item hits the threshold on its own.1New York State Department of Taxation and Finance. Clothing and Footwear Exemption
There is no partial exemption above the line. A $150 dress is taxed on the full $150, not just the $40 above $110. The state’s 4% comes off everywhere in New York for items under $110; the local portion is a separate question.
What You Actually Pay by Location
The state exemption is automatic statewide. Local exemptions are not. Counties and cities have to affirmatively elect to drop their local tax on clothing under $110, and many have not.
New York City
New York City has elected to exempt clothing and footwear under $110 from its 4.5% local tax. Combined with the state exemption, qualifying items carry no sales tax at all in the five boroughs.2New York City Department of Finance. New York State Sales and Use Tax Once an item hits $110, the full NYC combined rate of 8.875% applies.3NYC311. Sales Tax
Counties Outside New York City
Many counties still tax clothing under $110 at their local rate. Among those, rates range from 3% in places like Saratoga, Warren, and Washington counties up to 4.75% in Erie, Oneida, and Suffolk counties. The Department of Taxation and Finance publishes the current list in Publication 718-C.4New York State Department of Taxation and Finance. Publication 718-C – Sales and Use Tax Rates on Clothing and Footwear A $90 pair of shoes that costs nothing in sales tax in Manhattan can add roughly $4.28 in tax in Suffolk County.
If you are planning a larger purchase, check your county’s status before you go. Two minutes with Publication 718-C can tell you whether you are paying zero or several percent on everything in the cart.
What Counts as Exempt Clothing
The exemption covers articles of clothing worn on the body, footwear including athletic shoes and cleats, and materials used to make or repair clothing such as fabric, thread, yarn, buttons, and zippers. Formal wear you buy (not rent), religious garments, aerobic clothing, and sports uniforms all qualify when priced under $110.5New York State Department of Taxation and Finance. Lists of Exempt and Taxable Clothing, Footwear, and Items Used to Make or Repair Exempt Clothing
Several categories you might assume are included are always taxable at the full combined rate, regardless of price:
- Jewelry, watches, handbags, and purses
- Protective sports equipment such as helmets, shoulder pads, shin guards, and fielder’s gloves
- Halloween and party costumes
- Rented formal wear, including tuxedos and dresses
The sports distinction trips people up. A soccer jersey is exempt clothing. Shin guards are taxable equipment. Cleated shoes for football or baseball count as footwear and qualify, but a football helmet does not.5New York State Department of Taxation and Finance. Lists of Exempt and Taxable Clothing, Footwear, and Items Used to Make or Repair Exempt Clothing The rental rule is another one worth remembering: buy a tuxedo under $110 and it is tax-free, but rent the same tuxedo and you pay full sales tax.1New York State Department of Taxation and Finance. Clothing and Footwear Exemption
Coupons and the $110 Line
If a discount pushes you under $110, whether the exemption kicks in depends on who issued the coupon. Store-issued coupons and retailer discounts reduce the taxable receipt. A $115 sweater with a $10 store coupon has a taxable receipt of $105 and qualifies for the exemption.6New York State Department of Taxation and Finance. Taxable Receipt – How Discounts, Trade-Ins, and Additional Charges Affect Sales Tax
Manufacturer coupons work the opposite way. The manufacturer reimburses the store after the sale, so the retailer still receives the full price. A $115 jacket with a $10 manufacturer coupon is still treated as a $115 sale for tax purposes, and the exemption does not apply.6New York State Department of Taxation and Finance. Taxable Receipt – How Discounts, Trade-Ins, and Additional Charges Affect Sales Tax Check the fine print if you are hovering near the threshold.
For online orders of items at or above $110, shipping and delivery charges fold into the taxable total and get taxed with the purchase price.7New York State Department of Taxation and Finance. Shipping and Delivery Charges
Alterations and Tailoring
Reasonable alteration charges are not subject to sales tax, as long as they are listed separately on the receipt. This holds even when the clothing itself is fully taxable. A tailor hemming a $200 pair of pants can charge $30 for the work, and that $30 is not taxed, even though the pants are.8New York State Department of Taxation and Finance. TSB-M-02(4)S Sales Tax
Two conditions have to be met. The fee has to be reasonable, and it has to appear as its own line item. If the store bundles alterations into the clothing price without breaking the charge out, the whole amount is treated as the price of the garment.
If a Store Charges Tax That Shouldn’t Apply
Retailers sometimes charge sales tax on clothing that qualifies for the exemption. Start by asking the store to correct the receipt. If the retailer will not fix it, you can request a refund directly from the state by filing Form AU-11, Application for Credit or Refund of Sales or Use Tax. Individual consumers must submit the paper version with a copy of the receipt showing the tax paid.9New York State Department of Taxation and Finance. Form AU-11, Application for Credit or Refund of Sales or Use Tax A few dollars on one trip may not seem worth the paperwork, but hold on to receipts from counties that provide the local exemption; across a year of family shopping, the overcharges add up.