Would you pay sales tax on clothing when in New York? Well, it depends on your taste in clothing but there may be ways to avoid it.

Sales tax is imposed on the purchase of clothing and footwear costing US$110.00 or more per item or pair as of August 1, 2009 so if your clothing or footwear is US$110.00 each, you will be paying almost 9% (4.000% State, 4.500% City and 0.375% MCTD) sales tax in New York City.

Time is running out if you want to beat the hike in clothing tax across New York State.

A four percent tax on clothing items of $110 or less takes effect on Friday, October 1st according to the state budget. The tax hike affects clothes and footwear. Diapers had been tax-free, but that exemption expires come October 1. Things change again next April 1 when the exemption kicks back in on clothing and footwear sold for $55 or less.

The policy differs from state to state with our neighboring states. Clothing and shoes are not taxed in New Jersey. Vermont exempts items of $110 or less from taxes. Pennsylvania has no tax on clothing.

Could this additional cost be avoided? Yes! Pennsylvania has no tax on clothing and in New Jersey, clothing and footwear are currently exempt from tax and remains exempt from tax so if you plan to shop at a store in New York City where the prices for shoes and clothing are above US$110.00 and the store has a location as well in the State of New Jersey, you may want to grab a NJ Transit train, bus or PATH train there so that you can shop at that location in the State of New Jersey to save.

Below are numerous stores that preteens, teens and young adults like to shop when looking for clothing, footwear and accessories.

* Abercrombie & Fitch
* Adidas Originals Store
* Alikat NYC
* American Eagle Outfitters
* Betwixt
* Bloomingdale’s
* Diesel
* Forréal
* Gap
* G.C. William
* GirlPROPS
* H&M
* Infinity
* L.L. Bean
* Macy’s
* Marsha D.D.
* Mavi Jeans Art
* NBA Store
* Niketown
* Old Navy
* Olive & Bette’s
* Paragon Sporting Goods
* The Puma Store
* Quiksilver
* Reaction Kenneth Cole
* Space Kiddets
* Tommy Hilfiger
* Urban Outfitters
* Wet Seal
* Yellow Rat Bastard
* Zara

Are you an International shopper? If so, some stores in New York (such as Macy’s) may provide an additional discount for showing your passport so be sure to to keep that in mind on your visit. Customer or Guest Service at the store will provide the information that you need.

Join us in our New York Forum if you have any comments or questions.