Are Kids' Clothing Subject to Sales Tax?

Everyone · Explainer · Updated October 1, 2026 · LearnLife Editorial

What does sales tax on kids' clothing mean in everyday terms?

Sales tax is an extra charge added to the price of goods at the time of purchase, collected by the seller and passed on to the government. When kids’ clothing is subject to sales tax, the final amount you pay is the listed price plus a percentage determined by your state or local tax authority. For example, if a shirt costs $20 and the sales tax rate is 7%, you pay $21.40 total.

However, many states treat children's clothing as essential and exempt it from sales tax to reduce costs for families. This exemption can apply to all kids' clothing or just certain items or price ranges. For example, some states exempt clothing under a certain price (e.g., $100 per item) but tax anything above that. Other states may not exempt kids' clothing at all, taxing it just like adult clothes.

This means that the presence and amount of sales tax on kids' clothing vary significantly based on your location. If you live in a state or city with sales tax, make sure to check whether children’s clothing is included in the exemption list or if you’ll pay tax at checkout.

How does sales tax on kids' clothing work? A detailed hypothetical example

Imagine you live in State A, which taxes all clothing except kids’ clothes under $100 per item. You want to buy a winter coat for your child priced at $80, and the state sales tax rate is 6%. In this case, the coat is exempt, so you pay only $80. If you buy a second coat priced at $120, sales tax applies to the full amount. You pay:

$120 + (6% of $120) = $120 + $7.20 = $127.20 total.

Now suppose you live in State B, where all clothing is taxable at 5%, regardless of age or price. Buying that same $80 coat means you pay:

$80 + (5% of $80) = $80 + $4 = $84 total.

If you shop online from out-of-state sellers, your state might require you to pay use tax, which is similar to sales tax but paid directly by you to the state. For example, if you buy a $50 shirt from a state with no sales tax but use it in your home state with a 7% sales tax rate, you owe $3 in use tax. Some states have streamlined collection agreements where online sellers collect this tax at checkout, but many do not.

Knowing these rules can help you plan your purchases and budget accordingly.

Why does it matter to know if kids' clothing is taxed?

Understanding whether kids’ clothing is taxed affects your family budget, especially if you frequently buy clothes for growing children. Kids often need new clothing multiple times a year, so even a small tax rate can add up. Here’s why it matters:

• Budgeting: If you expect to pay sales tax on kids’ clothes, factor it into your shopping budget to avoid surprises. For example, for a $200 seasonal wardrobe at a 6% sales tax rate, you’d pay an additional $12.
• Shopping decisions: Knowing your state’s rules may guide you on when and where to shop. If your state has a sales tax holiday, you might delay purchases to save money.
• Online shopping: If you buy clothes online, understanding use tax laws helps you comply with state tax requirements and avoid penalties.
• Financial planning: Parents preparing tax documents or teaching kids about money can explain how taxes affect everyday purchases, including clothing.

By being informed, you can better manage expenses related to kids’ clothing and make smarter buying choices.

What common tax terms related to kids' clothing should you know?

• Sales tax: A tax imposed on retail sales, added at the time of purchase. This is the tax you pay on kids’ clothing if applicable in your state.
• Use tax: Tax owed when you buy something out-of-state without paying sales tax but use it in your home state. For example, ordering kids’ clothes online from a retailer that doesn’t charge sales tax may create use tax obligations.
• Tax exemption: A legal exclusion from sales tax. Many states exempt kids’ clothing as an essential item.
• Tax holiday: A temporary period when specific goods, often including kids’ clothing, are exempt from sales tax, such as during back-to-school events.
• Taxable item: An item subject to sales tax. Some clothes are taxable in certain states or above specific price points.
• Resale certificate: For businesses selling clothes, a certificate to avoid paying sales tax on inventory, since tax is collected from customers instead.

Understanding these terms helps clarify conversations about taxes and kids’ clothing purchases.

How can you find out your state’s rules about sales tax on kids' clothing?

To know if kids’ clothing is taxable where you live, follow these steps:

1. Visit your state’s department of revenue or taxation website. Search for “sales tax exemption for clothing” or “children’s clothing sales tax.”
2. Look for official publications or FAQs that describe taxable and exempt items. Many states have detailed lists or charts explaining which clothing items qualify for exemptions.
3. Check for price limits on exemptions, such as "clothing under $100 is exempt."
4. Note any local taxes that might apply on top of state sales tax. Some cities or counties add additional sales tax.
5. Review sales tax holiday dates if your state offers them, to plan tax-free shopping periods.
6. Contact the state tax department’s customer service if the information is unclear or if you want confirmation regarding specific clothing items.
7. Keep receipts showing sales tax paid, especially for online orders, to help with use tax reporting if needed.

By following these steps, you’ll get a clear understanding of your obligations and exemptions.

What are sales tax holidays and how do they affect kids’ clothing purchases?

Sales tax holidays are limited-time events where states waive sales tax on certain items, commonly including kids’ clothing, school supplies, and sometimes shoes. They usually last a few days or a weekend, often timed before the school year starts.

For example, during a sales tax holiday, you might buy a $75 coat for your child and pay no sales tax, even if normally taxed. Some states limit the exemption to clothing items priced below a certain threshold, such as $100 per item.

To take advantage:

• Check your state’s tax holiday dates well in advance.
• Make a shopping list to buy eligible items during the holiday period.
• Keep all receipts to prove purchases happened during the tax-free dates.
• Understand that sales tax holidays do not apply to online purchases unless the seller is located within the state and participates.

Sales tax holidays can save you money, but only if you plan ahead and understand the rules.

How does buying kids’ clothing online affect sales tax and use tax obligations?

Online shopping introduces complexity for sales tax on kids’ clothing. Here’s what happens:

• Remote sellers with a physical presence (nexus) in your state usually collect sales tax at checkout based on your shipping address. This means you pay sales tax automatically.
• Online sellers without nexus may not collect sales tax, so you might owe use tax directly to your state. For example, if you order kids’ clothing from a small out-of-state seller that doesn’t charge tax, you are responsible for reporting and paying that tax on your state return.
• Many states require taxpayers to report use tax on income tax forms or separate tax forms if sales tax was not collected.
• Keep detailed records of online purchases, including invoices and receipts, to report use tax correctly if applicable.

For parents, this means keeping track of online clothing purchases for kids and understanding when use tax applies. Some states provide worksheets or calculators to help estimate use tax owed.

What special situations relate to kids’ clothing and sales tax, such as resale or donations?

• Resale of kids’ clothing: If you run a business selling kids’ clothes, you generally need a resale certificate to avoid paying sales tax on inventory purchases. Instead, you collect sales tax when selling to customers. This ensures tax is only paid once.
• Donations of kids’ clothing: Giving away used clothing to charities typically doesn't involve sales tax. However, donating does not grant a sales tax refund. It might provide an income tax deduction if you itemize, but that is separate from sales tax and has its own rules.
• Secondhand sales: Sales tax rules for secondhand clothing sales vary. Some states tax sales at thrift stores, others don’t. If running a yard sale or informal sale, tax usually does not apply, but check local rules.
• Gift purchases: Buying kids’ clothing as gifts follows the same sales tax rules, so the purchaser pays sales tax if applicable.

Understanding these scenarios can help parents and caregivers avoid tax surprises.

Frequently asked questions

Are kids' shoes taxed the same way as kids' clothing?

Shoes often have separate tax rules. Some states exempt kids' clothing but not shoes, or vice versa. Check your state’s sales tax guidelines to see if kids' shoes are taxable.

Can I claim a refund for sales tax paid on kids' clothing?

Generally, no. Sales tax is final at purchase. Refunds might be possible if you were incorrectly charged, but you must contact the seller or state tax authority promptly.

Does the tax exemption for kids' clothing apply to accessories like hats and gloves?

It depends on state law. Some states include accessories as part of kids’ clothing exemptions; others tax them separately. Verify local rules to be sure.

How do states define “kids’ clothing” for tax purposes?

Definitions vary. Some states specify age limits (e.g., clothing sized for children under 14), types of garments included or excluded, or price limits for exemptions. Always review your state’s exact definition.

What should I do if I notice sales tax charged incorrectly on kids' clothing?

Ask the retailer for clarification or correction at purchase. If the issue isn’t resolved, contact your state tax department to report the error and seek guidance.

Does the federal government tax kids’ clothing sales?

No. Sales tax is imposed by states and local governments. There is no federal sales tax on clothing or any other goods.