New York – State Sales Tax Exemption for Clothing and Footwear

SALT Report 1460 – The New York State Department of Taxation and Finance issued a reminder for businesses and residents regarding the new clothing and footwear exemption.  Beginning April 1, 2012, any clothing or footwear that is sold for less than $110 will be exempt from the state’s 4% sales and use tax.  The exemption also applies to fabric, thread, yarn, buttons, hooks, zippers, and other items used to create or repair the now exempt items.

The following counties will fully exempt sales of less than $110 from local sales and use tax:

  • Chautauqua
  • Chenango
  • Columbia
  • Delaware
  • Greene
  • Hamilton
  • Madison (outside the City of Oneida)
  • New York City
  • Norwich
  • Tioga
  • Wayne

While the state sales tax exemption applies to items of clothing and footwear worn on the body, not all items qualify.  For example, jewelry, watches, tool belts, hard hats, and bicycle or motorcycle helmets will remain taxable.

For a detailed list of what is and is not exempt from the state sales and use tax, including merchandise ordered by mail, telephone, the Internet, or email, see TSB-M-06(6)S Year-Round Sales and Use Tax Exemption of Clothing, Footwear, and Items Used to Make or Repair Exempt Clothing.

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