Is clothing taxable in Vermont?

by Sarah Craig September 2, 2023

Please note: This blog was originally published in 2019. It’s since been updated for accuracy and comprehensiveness.

In most states, clothing is generally considered tangible personal property and subject to sales tax. But a few US states consider clothing tax exempt, and Vermont is one of them.

This post will cover what e-commerce businesses with sales tax nexus in Vermont need to know about selling clothes in the state.

When is clothing tax exempt in Vermont?

Clothing is tax exempt, but clothing accessories or equipment, protective equipment, and sports clothing/equipment are taxable.

Common tax exempt clothing in Vermont includes:

Aprons, household & shop
Coats & jackets
Boots
Hats & caps
Sandals
Scarves
Wedding apparel
Sneakers
Socks & stocking
Steel-toed shoes

Common taxable clothing in Vermont includes:

Belt buckles sold separately
Costume masks sold separately
Briefcases
Cosmetics
Handbags
Handkerchiefs
Jewelry
Nonprescription sunglasses
Umbrellas
Wallets
Watches
Wigs & hairpieces

Vermont provides a long list of what is tax exempt and what is taxable here.

How to automate Vermont sales tax collection

Do you sell clothing online? Vermont is just one of a few US states, like Massachusetts and New Jersey, where clothing is generally not taxable. If you accidentally collect sales tax on a product that isn’t taxable, you create a negative customer experience. No one wants your customer to back out of their shopping cart in favor of a competitor who gets tax right.

But if you don’t collect sales tax on a product that was actually taxable, you end up owing that sales tax out of pocket when it comes time to file your sales tax returns with the state.

That’s why TaxJar has your back. With the TaxJar API, you can be sure you’re collecting the right amount of sales tax. Our product tax codes ensure you collect the right amount of sales tax in Vermont whether you are selling boots or umbrellas.

Further, most e-commerce businesses have nexus in multiple states. For example, clothing priced under $110 is non-taxable at the state level in New York, while clothing is generally taxable in a majority of US states. With TaxJar, you’ll collect the right amount of sales tax from every customer, in every state, every time.

Ready to automate sales tax collecting, reporting and filing? To learn more about TaxJar and get started, visit TaxJar.com/product.