In January 2026, Kim Kardashian's SKIMS paid $200,000 to settle with New Jersey—not for dodging taxes, for charging sales tax on bathing suits.

New Jersey classifies swimwear as exempt clothing but SKIMS treated it as taxable athletic apparel. Same product, different classification, $200,000 consequence.

If a billion-dollar brand with a full finance team gets a swimsuit's tax classification wrong, the rules are exactly as counterintuitive as they sound.

Clothing tax by state: the apparel tax map

Most states treat clothing the same as any other product. California, Texas, Florida, and roughly 30 others don't give clothing special treatment. In those states, sales tax will be relatively straightforward. Elsewhere, be on the lookout.

Some of my favorite weird apparel sales tax rules

As someone who's worked in sales tax compliance for longer than he'd like to admit, here are some of my favorite (read: crazy confusing) sales tax rules related to apparel and clothing.

The bowling shirt/shoe split (NJ, PA)

In New Jersey, a bowling shirt is exempt apparel since it's "suitable for ordinary street wear." Bowling shoes? Taxable sport equipment.

Same brand and transaction, but different tax treatment because the state draws the line at whether you'd wear it to grab coffee.

For your store: If you sell athleisure, this is your daily reality. A moisture-wicking golf polo? Clothing. Cleated golf shoes? Sport equipment. The distinction lives in your product tax codes, and your platform won't assign them for you.

The patchwork tax (MN, RI)

Say you're the coolest brand I can remember from my youth, Abercrombie and Fitch, and you're selling what I assume is a very cool hoodie with patches on it. Sell that sweatshirt in places like Minnesota and Rhode Island and you're good to skip the sales tax. If someone logs on to buy a replacement patch, you better make sure you're collecting tax. The line between what is exempt clothing and what is taxable accessory comes down to the final product.

For your store: Be cautious when selling interchangeable items like clothing and accessory sets, and modular jewelry—the taxability splits at the component level. One SKU is exempt, the next is taxable, and they ship in the same box.

The furry factor (MN, NJ, PA)

Multiple states exempt clothing but carve out fur. The catch: "fur clothing" is not always defined by the label. In Pennsylvania, it's defined by a value ratio—fur value must exceed three times the next most valuable component.

Faux fur? Exempt. Real mink trim on a wool coat where the trim is two times the wool value? Still exempt. Bump it to 3.1 times? Taxable.

For your store: Material cost fluctuations flip an item's classification mid-season. Your fabric sourcing decisions have tax consequences.

The fancy fee (NY, MA, RI, CT)

New York exempts clothing under $110 per item from the state's 4% sales tax. At $110, the full tax kicks in on the entire amount. A $109 hoodie has $0 state tax, while a $110 hoodie has $4.40 state tax. A $1 price increase creates a $5.40 price difference. And each NY county decides independently whether to match the state exemption.

Massachusetts exempts clothing up to $175 per item, but only taxes the amount above $175. A $200 jacket incurs tax on $25. Rhode Island does the same at $250.

The difference: New York uses "cliff" math (under $110, exempt; at $110, fully taxable). Massachusetts and Rhode Island use "slice" math (exempt up to the threshold, taxed on the overage). Connecticut skips thresholds but applies a 7.75% luxury rate to clothing over $1,000.

For your store: Your cart needs to handle per-item threshold math differently in each of these states. And if you price products near any of these thresholds, you're making a tax decision whether you realize it or not.

The taxable tux (PA, NY)

A $5,000 bespoke business suit? Exempt. It's "everyday ordinary wearing apparel."

A $100 polyester tuxedo rental? Taxable. It's "formal day or evening apparel."

Pennsylvania doesn't care about the price tag, it cares about the occasion. Office wear is clothing and evening wear is a taxable category—despite that scene in Step Brothers.

For your store: How you merchandise matters. If the same blazer shows up in your "Evening Wear" collection instead of "Office Essentials," you've shifted its classification risk in PA. Product taxonomy and marketing taxonomy are not separate conversations when sales tax is involved.

Is it taxable? try this logic tree

For every product you sell and every state you sell it in, your sales tax solution needs to answer this decision tree correctly. Here's just an example.

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"General clothing" generally means designed for everyday bodily wear and suitable for street use. The line is not about the material or the brand but about intended use. Talk to each state's department of revenue or peruse some legal precedent to learn more. Or talk to us.

The big takeaway

The hard part isn't figuring it out once. It's figuring it out every time, across a seemingly innumerable number of rates, rules, and classifications. Unless you know exactly what you're selling, who you're selling it to, and exactly where you're selling it, it's probably time to look into Anrok.

FAQ: clothing sales tax by state

Which states don't charge sales tax on clothing?

Five states have no sales tax at all (NH, OR, MT, DE, AK*). Eight additional states exempt clothing with caveats: NJ, PA, MN, and VT use definition-based exemptions, while NY, MA, RI, and CT use threshold-based exemptions. The remaining ~30+ states tax clothing like any other product.

Is clothing taxable in New York?

Clothing and footwear under $110 per item are exempt from New York's 4% state sales tax. At $110, the full tax applies to the entire amount. Local tax depends on the county. Costumes and rented formal wear are not eligible for the exemption.

Are costumes taxable?

Minnesota and Rhode Island classify costumes as exempt clothing. New York excludes costumes from its under-$110 exemption, making them fully taxable. Costume masks sold separately are taxable accessories in both MN and RI, even though the costume itself is exempt.

Are belt buckles and clothing accessories taxable?

In states exempting clothing, accessories are carved out as taxable. Minnesota and Rhode Island both list "belt buckles sold separately" as taxable accessories in their statutes. Handbags, jewelry, wallets, and cosmetics also fall in the taxable accessories category.

How does Massachusetts tax clothing over $175?

Massachusetts exempts clothing and footwear up to $175 per item. Only the amount above $175 is taxed (slice math). A $200 jacket incurs tax on $25. Rhode Island uses similar slice math at a $250 threshold.

Does Alaska have sales tax on clothing?

Alaska has no statewide sales tax, but local municipalities levy their own with their own rules. Whether clothing is taxable depends on the specific locality.