New Jersey is one of the few states in the U.S. that offers a sales tax exemption on most clothing and footwear. This tax-friendly policy benefits residents and visitors alike by making everyday apparel purchases more affordable. However, there are exceptions to this rule that shoppers should be aware of.
What Clothing Is Exempt from Sales Tax?
In New Jersey, most articles of clothing and footwear are not subject to the state’s 6.625% sales tax. This exemption includes:
Everyday apparel such as shirts, pants, dresses, and socks
Standard footwear like sneakers, boots, and sandals
Baby clothing and diapers
Since clothing is considered a basic necessity, the state has chosen to relieve consumers of sales tax when purchasing these items.
Is There No Sales Tax on Clothing in New Jersey?
What Clothing Is Still Taxable?
Despite the general exemption, certain types of clothing and related services are still subject to sales tax, including:
Fur Clothing – Any apparel made from real animal fur or containing more than three times the value of the fur than other materials.
Sporting Equipment – Items like ski boots, cleats, shoulder pads, and helmets are taxed because they are designed for specific sports rather than everyday use.
Custom Tailoring Services – Alterations and customization, such as hemming or embroidery, are considered taxable services.
Why Does New Jersey Have This Policy?
New Jersey’s tax exemption on clothing is designed to help consumers save money on essential goods. It also attracts shoppers from neighboring states like New York, where most clothing purchases over $110 are subject to sales tax. As a result, New Jersey retailers often see an influx of customers looking to take advantage of these tax savings.
Sales Tax on Clothing
If you’re shopping for clothing in New Jersey, you can enjoy tax-free purchases on most items. However, be mindful of exceptions like fur clothing, sporting equipment, and tailoring services, which remain taxable. Understanding these rules can help you make more informed shopping decisions and maximize your savings.
