In New York, there is no sales tax on clothes or footwear priced under $110 per item or per pair at the state level, and in some parts of the state there’s no local tax on them either. The 4% state exemption applies everywhere. The catch is local sales tax: New York City and a handful of counties waive it entirely on qualifying clothing, while many suburban and upstate counties still charge their local rate on the same purchase.
How the $110 Rule Works
New York exempts clothing and footwear from its 4% state sales tax as long as the item costs less than $110 per piece or per pair.1New York State Senate. New York Tax Law 1115 – Exemptions From Sales and Use Tax The threshold is per item, not per receipt. Three $75 shirts in the same transaction each qualify, even though the total rings up at $225.2Department of Taxation and Finance. Clothing and Footwear Exemption
The threshold is also a cliff. Once an item hits $110, tax applies to the full price, not just the portion above $110. A $115 jacket is taxed on the entire $115.
The exemption also covers fabric, thread, yarn, buttons, zippers, and similar materials used to make or repair exempt clothing, as long as they become part of the finished garment. Supplies made from pearls, precious or semi-precious stones, or precious metals stay taxable regardless.2Department of Taxation and Finance. Clothing and Footwear Exemption
Where You Actually Pay Zero Tax
New York City provides a full local exemption on top of the state exemption. Clothing and footwear under $110 per item are exempt from the 4% state tax, the 4.5% city tax, and the 0.375% Metropolitan Commuter Transportation District surcharge, which adds up to zero sales tax across the five boroughs. Once an item reaches $110, the full combined 8.875% rate applies. A $200 coat in Manhattan carries $17.75 in tax.3NYC 311. Sales Tax
Outside the city, each county or city decides independently whether to mirror the state exemption locally. Several have; many haven’t. Counties that fully exempt clothing under $110 include Dutchess, Putnam, Monroe, Columbia, and Chautauqua, so buying a $90 shirt in Rochester or Poughkeepsie costs the same as buying it in Brooklyn: no tax at all.4Department of Taxation and Finance. Publication 718-C Sales and Use Tax Rates on Clothing and Footwear
Counties That Still Charge Local Tax
As of 2025, the following jurisdictions charge their full local rate on clothing under $110:4Department of Taxation and Finance. Publication 718-C Sales and Use Tax Rates on Clothing and Footwear
- Suffolk County: 4.75%
- Westchester County: 4.375% (4.875% in Yonkers)
- Rockland County: 4.375%
- Nassau County: local tax applies
- Orange County: 4.125%
- Saratoga County: 3%
In these areas, a $90 shirt is exempt from the 4% state tax but still carries the local rate. In Suffolk, that’s about $4.28 on a $90 shirt. The state Department of Taxation and Finance updates the full list in Publication 718-C, and a jurisdiction’s election can change once a year, effective March 1.2Department of Taxation and Finance. Clothing and Footwear Exemption Combined state and local rates across New York run from 7% to 8.875%.5Department of Taxation and Finance. New York State Sales and Use Tax Rates by Jurisdiction
What Counts as Exempt Clothing
Everyday garments qualify: shirts, pants, dresses, coats, socks, underwear, sneakers, and boots. The exclusions are where shoppers get caught. These items are always taxable, no matter the price:6Department of Taxation and Finance. Lists of Exempt and Taxable Clothing, Footwear, and Items Used to Make or Repair Exempt Clothing
- Accessories: jewelry, watches, handbags, purses, and wallets
- Costumes: Halloween and party costumes, and rented formal wear such as tuxedos2Department of Taxation and Finance. Clothing and Footwear Exemption
- Protective and sport equipment: sport, motorcycle, and bicycle helmets; non-prescription safety glasses and goggles; protective masks and pads; baseball fielders’ gloves; hockey gloves; ice skates
The line runs between clothing and equipment. A soccer jersey is exempt; shin guards are taxable. Running shoes are exempt; ice skates are taxable.6Department of Taxation and Finance. Lists of Exempt and Taxable Clothing, Footwear, and Items Used to Make or Repair Exempt Clothing
Coupons, Discounts, and Gift Cards
Whether a discount can push an item under $110 depends on who’s absorbing the cost. Store coupons and store-issued discounts reduce the selling price for the threshold calculation. A $120 jacket marked down to $99 with a store coupon qualifies as exempt.7Department of Taxation and Finance. Sales and Use Tax Exemption on Clothing, Footwear, and Items Used to Make or Repair Exempt Clothing
Manufacturer’s coupons don’t. Because the manufacturer reimburses the retailer for the discounted amount, the store still collects the full price, and the sale is still treated as full-price for tax purposes. A $115 pair of shoes with a $10 manufacturer’s coupon is taxed as a $115 sale.7Department of Taxation and Finance. Sales and Use Tax Exemption on Clothing, Footwear, and Items Used to Make or Repair Exempt Clothing
Gift cards aren’t taxed when you buy them. Tax is calculated when you redeem the card, based on the item’s selling price before the gift card is applied.8Department of Taxation and Finance. Sales Tax Treatment Relating to the Sale and Redemption of Certain Prepaid Discount Vouchers Using a $50 gift card toward a $90 shirt in a full-exemption locality still costs zero in tax.
Alterations
Alteration charges are not taxable in New York if two conditions are met: the charge is reasonable, and it appears as a separate line item on the receipt. When both are true, the alteration fee is also excluded from the $110 threshold calculation.9Department of Taxation and Finance. Taxability of Alterations to Clothing
Bundle the alteration into the clothing price, and it counts toward $110. A $98 pair of pants with a $20 alteration charge folded into the total becomes a $118 taxable sale.9Department of Taxation and Finance. Taxability of Alterations to Clothing Ask the retailer to list alterations separately.
Shipping Charges
Delivery follows the item. Shipping on an exempt clothing purchase is also exempt; shipping on a taxable item is taxable. If an order mixes taxable and exempt items under a single combined shipping charge, the entire delivery fee is treated as taxable. Retailers that split shipping proportionally between taxable and exempt items on the invoice let you avoid paying tax on the exempt portion.10Department of Taxation and Finance. Shipping and Delivery Charges
Online and Out-of-State Orders
The same rules apply to online purchases, and the tax is calculated based on where the order ships, not where the seller is. Marketplace providers like Amazon are required to register with New York and collect the applicable tax on third-party sales.2Department of Taxation and Finance. Clothing and Footwear Exemption Buy a $90 sweater from an out-of-state site and have it shipped to Suffolk County, and Suffolk’s local tax should be added at checkout; ship it to a Manhattan address, and no tax applies.
When a seller doesn’t collect New York tax, you owe use tax at the same rate the sale would have carried. Use tax is reported on your state income tax return.
Returns
Tax refunds on returned clothing track the refund itself. Get a full refund, get the full tax back. If the store keeps part of the price through a restocking fee or partial credit, the tax refund is limited to the portion of the price actually returned.11Department of Taxation and Finance. Advisory Opinion TSB-A-09(29)S – Refund of Sales Tax on Returns On a $100 item where the store refunds $50, you get $50 back plus the tax attributable to that $50.