Clothing and footwear purchased in New York for less than $110 each are exempt from the state’s sales tax. However, a 4% state sales tax will be added to any item that costs more than $110. Additionally, depending on the county or city where the purchase is made, local sales taxes may be applicable. For instance, the combined state and local sales tax rate in Albany County is 8%, compared to 8.875% in New York City.
Although the laws and levies may vary, many other US states impose taxes on apparel. For instance, regardless of price, New Jersey imposes a 6.625% sales tax on the majority of clothing purchases. Conversely, Connecticut’s 6.35% sales tax is not applied to apparel or footwear that costs less than $50 per item. Oregon is your best option if you’re seeking for the state with the lowest sales tax on apparel. There is no sales tax levied by the state on any products, including apparel and footwear. Although additional taxes may be applicable, Delaware, Montana, New Hampshire, and Alaska are also tax-free states.
Another state that permits tax-free shopping is Massachusetts. Every year, in August typically, the state celebrates a tax-free weekend during which most articles of clothes and footwear priced under $175 are exempt from the 6.25% sales tax. Other purchases, like computers and school supplies, are also exempt from taxes throughout this weekend.
Not all clothing, meanwhile, is exempt from Massachusetts’ sales tax. Aprons, for instance, that are worn for work-related purposes are regarded as taxable items because they are not regarded as “clothing” by state legislation. Similar to this, even when sold alongside apparel products, accessories like purses, jewelry, and watches are subject to taxation.
Unless you are operating a business out of your rental property, Massachusetts law prohibits you from deducting rent. Although there might be other exemptions and deductions that apply to your situation, Massachusetts does not consider rent to be a deductible item for personal income tax purposes.
Finally, while there is a clothes tax in New York, it only applies to purchases that cost more than $110. It’s crucial to check the local sales tax laws before making a purchase because other states may have different regulations and charges. States like Oregon and Delaware may be your best pick if you’re seeking for tax-free shopping opportunities, while Massachusetts hosts an annual tax-free weekend. It’s vital to read the tiny print because not every clothing is exempt from sales tax.