States That Exempt Clothing From Sales Taxes


If you like clothes, you probably dislike any state sales tax that is placed on them. Though the taxes may be relatively small, they do add up, particularly if you have growing children. Clothing is taxed differently, depending on the state. Some tax it at the general sales tax rate, while others exempt clothing when the cost is under a certain dollar amount. Still others exempt it altogether; in some states, there is no sales tax at all.

States With No Sales Tax

There are five states that have no general sales tax; naturally, this includes clothing. The five states are Alaska, Delaware, Montana, New Hampshire and Oregon. However, just because the state has no sales tax doesn't mean there isn't any taxes. For example, in Alaska, local municipalities can impose sales taxes as high as 7 percent. Delaware, Oregon and Montana don't have sales taxes, but they do have personal income taxes to make up for it.

Clothing Exemption

Four states completely exempt clothing from sales tax, as it is considered an undue burden on lower-income families. These states are Minnesota, New Jersey, Pennsylvania and Rhode Island. Minnesota also has a general sales tax of 6.875 percent -- food, prescription drugs and non-prescription drugs are also exempt. Some cities and counties add to the state's sales tax, but they cannot tax clothing. New Jersey also exempts footwear from taxation. Pennsylvania has a 6 percent general sales tax; Rhode Island's is 7 percent.

Exemption by Price

Three states exempt clothing by the price of the article of clothing you purchase. Connecticut does not charge sales tax on clothing if the article of clothing costs less than $50. In Massachusetts, the article of clothing must cost $75 before it requires that you pay sales tax. Vermont charges sales tax on articles of clothing that cost more than $110.

Tax Holidays

Of the states that charge sales tax on clothing, 13 of them and the District of Columbia have established annual sales tax holidays, typically near the beginning of the school year. Out of those states, 10 exempt clothing that costs less than $100. These states are Alabama, Georgia, Iowa, Missouri, Maryland, New Mexico, North Carolina, Tennessee, Texas and Virginia; the District of Columbia is also included. South Carolina exempts all clothing; Florida exempts clothing under $50 and Connecticut exempts clothing under $300. The tax holidays last from two to nine days, depending on the state.

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