Vermont does not charge sales tax on clothing. The state’s general sales and use tax rate is 6%, but everyday apparel and footwear are fully exempt under 32 V.S.A. § 9741(45).1Vermont General Assembly. Vermont Code 32 VSA 9741 – Sales Not Covered There is no price cap. A $20 pair of jeans and a $2,000 designer coat are both tax-free at the register. The complication is that not everything you put on your body counts as “clothing” under Vermont law, and the line between an exempt garment and a taxable accessory is where shoppers get caught.
What Counts as Exempt Clothing
Vermont defines clothing as human wearing apparel suitable for general use.2Vermont General Assembly. Vermont Code 32 VSA 9701 – Definitions That phrase does the heavy lifting. If you could reasonably wear it walking down the street, running errands, or sitting at a desk, it’s almost certainly exempt. The statute’s list is broad:
- Everyday staples: shirts, pants, coats, jackets, dresses, underwear, and hosiery
- Footwear: shoes, boots, sneakers, sandals, slippers, and overshoes
- Cold-weather and rain gear: rainwear, scarves, earmuffs, gloves and mittens for general use
- Formal and special-occasion wear: wedding apparel, formal wear, neckties
- Uniforms, both athletic and nonathletic
Vermont also treats several items as clothing that people don’t always expect, including baby receiving blankets, bathing suits, lab coats, and costumes.2Vermont General Assembly. Vermont Code 32 VSA 9701 – Definitions
Accessories That Stay Taxable
Vermont separates “clothing accessories or equipment” from clothing itself and applies the full 6% tax to accessories.2Vermont General Assembly. Vermont Code 32 VSA 9701 – Definitions Common taxable accessories include:
- Jewelry and watches
- Handbags, wallets, and briefcases
- Nonprescription sunglasses
- Umbrellas
- Hair notions like barrettes, hair bows, and hair nets
- Cosmetics
- Wigs and hairpieces
The distinctions can be narrow. A belt is exempt clothing, but a belt buckle sold on its own is a taxable accessory.3Vermont Department of Taxes. What is Taxable and Exempt The same logic applies to patches and emblems sold separately from a garment.
Sport and Recreational Equipment
Athletic and recreational gear is its own taxable category. Vermont defines “sport or recreational equipment” as items designed for an athletic or recreational activity that are not suitable for general use.2Vermont General Assembly. Vermont Code 32 VSA 9701 – Definitions The test is whether the item works only for a specific activity or doubles as everyday wear.
Taxable sport equipment includes cleated or spiked athletic shoes, ballet and tap shoes, sport-specific gloves for baseball, bowling, boxing, hockey, or golf, goggles, shin guards, mouth guards, hand and elbow guards, life preservers, and roller and ice skates.3Vermont Department of Taxes. What is Taxable and Exempt Running sneakers are exempt because you can wear them anywhere. Football cleats are taxable because you can’t.
Edge Cases That Catch Shoppers
Costume Masks Sold Alone
A full Halloween costume is exempt clothing. A costume mask sold by itself is taxable, because the statute carves standalone masks out of the clothing definition.2Vermont General Assembly. Vermont Code 32 VSA 9701 – Definitions A bundled costume with an attached mask is tax-free; grabbing a mask off the rack triggers the 6% charge.
Diapers
Both child and adult diapers, including disposable ones, are exempt clothing in Vermont.2Vermont General Assembly. Vermont Code 32 VSA 9701 – Definitions That’s a meaningful difference from many states that still tax them.
Steel-Toed Boots vs. Safety Gear
Steel-toed shoes are listed by name as exempt clothing.2Vermont General Assembly. Vermont Code 32 VSA 9701 – Definitions More specialized workplace protective equipment, like breathing masks, face shields, and helmets, does not qualify. Vermont keeps a separate “protective equipment” category that remains taxable.1Vermont General Assembly. Vermont Code 32 VSA 9741 – Sales Not Covered
Sewing Supplies
This one genuinely surprises people. Fabric, thread, buttons, lace, yarn, and zippers are all taxable, even though the finished garment would be exempt.3Vermont Department of Taxes. What is Taxable and Exempt The same goes for sewing equipment like needles, scissors, patterns, and sewing machines.2Vermont General Assembly. Vermont Code 32 VSA 9701 – Definitions If you sew your own clothes, you pay 6% on every supply run.
Online Orders From Out of State
The exemption covers use tax as well as sales tax.4Vermont Department of Taxes. Sales and Use Tax Use tax is what Vermont charges on purchases where the seller didn’t collect Vermont sales tax, which most often happens with online orders. Because clothing is exempt from both sales and use tax, a jacket you order from an out-of-state website stays tax-free regardless of whether the retailer collects Vermont tax.
Accessories and sport gear are different. A watch or a pair of ice skates ordered online still carries a 6% Vermont use tax obligation. Most large online retailers now collect it automatically. If a seller doesn’t, the buyer is responsible for paying it.
Local Option Tax Towns
About two dozen Vermont municipalities add a 1% local option sales tax on top of the state’s 6% rate. Burlington, Rutland, Stratton, Stowe, and Montpelier are among the towns that have adopted it under 24 V.S.A. § 138.5Vermont General Assembly. Vermont Code 24 VSA 138 – Local Option Taxes The local tax only applies to transactions that are already subject to the state sales tax.6Vermont Department of Taxes. Local Option Tax
Since clothing is exempt at the state level, it’s also exempt from the local option tax. A sweater in Burlington rings up at $0 tax. Taxable items like jewelry or handbags in those towns carry the combined 7% rate: 6% state plus 1% local. The Vermont Department of Taxes keeps a current list of participating municipalities on its website.