Clothing and footwear priced under $110 per item are exempt from New York’s 4% state sales tax. Whether local tax also drops off depends on the county, and New York City exempts these items fully. That rule comes straight from the New York Department of Taxation and Finance’s clothing and footwear exemption bulletin (Tax Bulletin ST-122).
This guide serves both sides of the counter. Sellers get the collection and nexus rules. Buyers get the plain answer on what is taxed and where.
Is Clothing Taxable in New York?
It depends on the price and the county. Clothing and footwear under $110 per item are exempt from New York’s 4% state tax, per Tax Bulletin ST-122. At $110 or more, the item is fully taxable at the combined local rate. Under $110, the local tax applies only if that county chose not to exempt it. New York City exempts these items completely.
| Scenario | Sales tax result | Source |
|---|---|---|
| Item under $110, sold in NYC | $0 (fully exempt) | NYC311 |
| Item $110 or more, sold in NYC | 8.875% | NY DTF Pub 718 |
| Item under $110, county that exempts (e.g., Putnam) | $0 | NY DTF Pub 718-C |
| Item under $110, county that does not (e.g., Erie/Buffalo) | 4¾% local only | NY DTF Pub 718-C |
How Does the $110 Clothing Exemption Work?
The exemption applies per item, not per receipt, according to Tax Bulletin ST-122. Ten shirts at $50 each are all exempt, even though the total is $500. The state’s own worked example confirms a $190 purchase of shirts, pants, and a dress is fully exempt because each item is under $110. The threshold is exact: $109.99 is exempt, $110.00 is fully taxable.
The state portion of the exemption is mandatory everywhere in New York. The local portion is each jurisdiction’s choice. Per the New York Department of Taxation and Finance, a county or city must separately elect the local exemption, and any change to that election takes effect only on March 1 of a given year. Materials used to make or repair exempt clothing, such as fabric, thread, yarn, buttons, and zippers, are also exempt when each item is under $110.
What Is the Sales Tax Rate on Clothing in NYC?
Clothing and footwear under $110 per item carry $0 tax in New York City. At $110 or more, they are taxed at the full combined rate of 8.875%, per NY DTF Publication 718. That headline rate is three separate levies stacked together, not one local tax. There is no partial or prorated exemption at the threshold.
| Component | Rate | Source |
|---|---|---|
| New York State sales/use tax | 4.0% | NY DTF Pub 718 |
| New York City local sales/use tax | 4.5% | NYC311 |
| Metropolitan Commuter Transportation District (MCTD) surcharge | 0.375% | NYC311 |
| Combined NYC rate | 8.875% | NY DTF Pub 718 |
The MCTD surcharge is set at three-eighths of one percent (0.375%) under New York Tax Law §1109. The New York Department of Taxation and Finance confirms it applies in NYC plus Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and Westchester counties.
Which New York Counties Tax Clothing Under $110?
Some do, some don’t. The local exemption is a binary choice each jurisdiction makes, listed locality by locality in Publication 718-C, effective March 1, 2025. Where a county exempts under-$110 clothing, buyers pay $0. Where it does not, the item skips the 4% state tax but still owes the local rate. Two counties in the same region can land on opposite sides.
| Locality | Exempts clothing under $110? | Local rate still charged if not exempt | Source |
|---|---|---|---|
| New York City | Yes (0%) | None | NY DTF Pub 718-C |
| Putnam County | Yes (0%) | None | NY DTF Pub 718-C |
| Nassau County | No | 4⅝% | NY DTF Pub 718-C |
| Erie County (Buffalo) | No | 4¾% | NY DTF Pub 718-C |
NYC’s local exemption is set out in its own official memorandum, TSB-M-05(10)S, issued August 2005.
What Clothing and Footwear Are Exempt in New York?
Everyday clothing and footwear qualify when priced under $110 per item, per the New York Department of Taxation and Finance clothing chart. Items that are not “clothing” stay taxable at any price. The split below tracks the DTF chart directly.
| Exempt if under $110 per item | Taxable at any price |
|---|---|
| Everyday clothing: shirts, pants, dresses, coats, socks | Handbags and wallets |
| Footwear: shoes, sneakers, boots, sandals | Jewelry, watches, and watch bands |
| Cloth diapers | Sport and protective equipment (helmets, shin guards, shoulder pads) |
| Fabric, thread, yarn, buttons, and zippers to make or repair exempt clothing | Costumes, umbrellas, wigs, and nonprescription sunglasses |
Source: NY DTF clothing chart and Tax Bulletin ST-122.
Medical items follow a separate rule. Prosthetic aids and devices are exempt from New York sales tax at any price, with no $110 cap, per New York Publication 822 (Taxable Status of Medical Equipment and Supplies, Prosthetic Devices, and Related Items). That list covers artificial limbs, orthopedic implants, and arch supports. The exemption comes from New York’s medical exemption, not the clothing rule, so it applies whether the item costs $50 or $500. Retailers serving customers with special needs should track it separately from the $110 threshold.
Are Accessories Taxable in New York?
Yes. Handbags, jewelry, watches, wallets, wigs, and umbrellas are not “clothing,” so they are taxed at any price, per the New York Department of Taxation and Finance clothing chart. This holds even when the accessory is bought alongside an exempt clothing item. A $40 handbag rung up with an exempt $60 shirt still owes tax on the handbag. Nonprescription sunglasses and skates fall in the same taxable bucket.
How Are Alterations, Rentals, and Costumes Taxed?
Costumes are taxable at any price, because the DTF clothing chart does not classify them as everyday clothing. Materials to make or repair exempt clothing, such as fabric and thread, stay exempt under $110 per item, per Tax Bulletin ST-122. Standalone alteration, repair, and rental charges follow the specific rules in Tax Bulletin ST-122; confirm the treatment of your exact transaction against that bulletin before you charge or pay tax. Do not assume a rental or a repair service tracks the $110 rule automatically.
How Do You Collect Sales Tax on Clothing in New York?
Register first, then apply the per-item rule by ship-to location. Sellers need a New York Certificate of Authority before making taxable sales, must configure their point-of-sale (POS) system for the item-level $110 threshold, and must use the correct rate for the delivery county because local exemption status varies. Follow these steps:
- Register for a New York Certificate of Authority.
- Determine nexus, whether physical or economic.
- Configure POS or tax software for the per-item $110 rule, not the order total.
- Apply destination-based rates by ship-to locality.
- Collect and validate exemption or resale certificates where they apply.
- File returns through New York Online Services on your assigned schedule.
| Nexus trigger | Threshold | Source |
|---|---|---|
| Physical nexus | Office, warehouse, employees, or inventory in New York | New York Department of Taxation and Finance |
| Economic nexus | Over $500,000 in gross receipts AND more than 100 transactions delivered into New York over the preceding four sales tax quarters | New York Department of Taxation and Finance |
Commenda’s New York sales tax guide walks the registration steps, and the US economic nexus threshold guide tracks the current triggers state by state.
Do Marketplace and Out-of-State Sellers Collect New York Clothing Tax?
Marketplaces handle it for third-party sellers. New York’s marketplace facilitator law requires platforms like Amazon, eBay, Etsy, and Walmart to collect and remit sales tax on sales delivered into New York. If you sell only through those platforms, you generally do not remit that tax yourself. You may still owe registration or zero-return filing obligations, so confirm your status with the New York Department of Taxation and Finance.
Direct-channel remote sellers get no such coverage. If you sell independently and cross New York’s economic nexus test, over $500,000 in gross receipts and more than 100 transactions into the state over the preceding four quarters, you must register and collect. The per-item $110 clothing rule and destination sourcing then apply to your sales just as they do to in-state retailers.
How Commenda Helps With New York Clothing Sales Tax
New York’s per-item $110 rule and its county-by-county local election are exactly the kind of detail that breaks manual tax setup. Commenda’s indirect tax software maps a single product tax code to each item, such as tagging a T-shirt as “clothing,” and applies the correct rate across every US state and local jurisdiction without per-state remapping. It tracks your physical and economic nexus, manages exemption certificates, and files returns on time.
Use the US economic nexus threshold guide to check where your sales create obligations, and the sales tax calculator to look up combined rates by location. Book a demo to get a free assessment of where your clothing sales create nexus exposure across the states.
