State Renews Clothing Tax Break
Beginning April 1, New York state will once again exempt clothing, footwear and related items under $110 from the 8.875 percent sales tax. The sales tax is broken down as follows: 4 percent for the state, 4.5 percent for the city, plus .375 percent Metropolitan Commuter Transportation District surcharge.
The tax-free program applies to all qualified items purchased in person, over the Internet, by phone or by mail. The qualifying amount for the exemption has doubled since 2011, when it only applied to apparel costing at or below $55.
The sales tax cut – which is expected to save shoppers $210 million – is designed to provide much-needed help with clothing and footwear expenses.
The exemption will help consumers afford other necessities and will provide local businesses with a vital shot in the arm, retail experts said.