Are Clothes Taxed in Massachusetts?
Massachusetts provides a sales tax exemption for clothing items priced at $175 or less. However, any amount exceeding $175 per item is subject to the state’s 6.25% sales tax.
How the Clothing Tax Works
If a clothing item costs $175 or less, no sales tax is applied.
If a clothing item costs more than $175, only the amount above $175 is taxed at 6.25%.
For example:
A jacket priced at $150 is not taxed.
A designer coat priced at $300 is taxed on $125 (the amount exceeding $175). The tax would be $7.81 (6.25% of $125).
This tax structure means that while many everyday clothing items remain untaxed, luxury apparel or high-priced specialty clothing may incur additional costs.
What Types of Clothing Are Taxed?
Most everyday clothing and footwear are exempt from sales tax if they fall under the $175 limit. However, certain specialized apparel and accessories are always taxable, regardless of price. These include:
Protective gear (e.g., safety goggles, helmets, and work gloves)
Athletic equipment (e.g., cleats, pads, and wetsuits)
Jewelry, handbags, and accessories
Clothing Tax Considerations for Businesses
Retailers in Massachusetts must correctly apply the 6.25% sales tax on eligible clothing items. Businesses should be aware of:
Properly categorizing items that are partially taxable (above $175 per item)
Ensuring accurate point-of-sale system settings for compliance
Understanding sales tax filing obligations for clothing sales
Are There Any Sales Tax Holidays?
Massachusetts typically holds an annual sales tax holiday, during which eligible items—including clothing—may be purchased tax-free, regardless of price. The dates for this event vary each year, providing an opportunity for consumers to save on high-ticket clothing purchases.
Conclusion
In Massachusetts, clothing items under $175 are tax-exempt, while any amount exceeding $175 per item is subject to the 6.25% sales tax. Shoppers should be mindful of this threshold, especially when purchasing high-end apparel. Retailers must also ensure compliance with these tax regulations to avoid miscalculations.
