January 28, 2025
Is There Sales Tax in Pennsylvania on Clothes: 2025 Guide for Businesses
Table of contents
Is There Sales Tax in Pennsylvania on Clothes?
No, most clothing is exempt from sales tax in Pennsylvania. Unlike many states, Pennsylvania does not apply its 6% state sales tax (plus local rates in Allegheny County at 7% and Philadelphia at 8%) to most everyday clothing and footwear.
CQ For more general information on Pennsylvania sales tax, visit Kintsugi's comprehensive guide: Pennsylvania Sales Tax Guide 2025: A Step-by-Step Guide for Businesses.
Clothing Category | Taxable? | Details |
|---|---|---|
Everyday Apparel | No | Most standard clothing items, such as shirts, pants, and shoes, are exempt. |
Formal Wear | Yes | Tuxedos, wedding gowns, and rented costumes are taxable. |
Sporting & Protective Gear | Yes | Cleats, pads, helmets, and specialized safety gear are taxable. |
Accessories | Yes | Jewelry, handbags, watches, and sunglasses are taxable. |
What is the General Policy on Pennsylvania Clothing Tax?
Most clothing is tax-free, but formal wear, accessories, and protective gear are taxable.
Businesses selling taxable clothing must collect and remit sales tax to the Pennsylvania Department of Revenue.
Allegheny County (7%) and Philadelphia (8%) impose higher local tax rates.
FAQs
Do you pay sales tax on clothes in Pennsylvania?
No, most clothing is exempt from sales tax in Pennsylvania, except for formal wear, sports gear, and accessories.
Are handbags taxed in PA?
Yes, handbags are subject to sales tax in Pennsylvania as they are considered taxable accessories.
What is the tax in Pennsylvania for shopping?
Pennsylvania's state sales tax rate is 6%, with an additional 1-2% in certain local jurisdictions like Allegheny and Philadelphia.
CQ For city-based, local sales tax rates in Pennsylvania, visit our Pennsylvania Local Sales Tax Directory and search for your city.
Non-Taxable vs. Taxable Clothing in Pennsylvania
Pennsylvania exempts most everyday clothing, but formal wear, accessories, and protective gear are taxable. Below is a more detailed breakdown:
Clothing Category | Taxable? | Details (Examples of Items) |
|---|---|---|
Everyday Apparel | No | T-shirts, jeans, sweaters, shorts, sneakers, casual dresses, socks, undergarments, pajamas, sandals, winter coats, hats, scarves, and gloves. |
Formal Wear | Yes | Tuxedos, wedding dresses, prom gowns, ball gowns, formal suits, evening wear, rented costumes, choir robes, and graduation gowns. |
Sporting & Protective Gear | Yes | Football pads, ski boots, ice skates, baseball gloves, golf shoes, shin guards, knee pads, safety goggles, reflective vests, and helmets. |
Accessories | Yes | Handbags, purses, wallets, belts, ties, jewelry, watches, sunglasses, umbrellas, scarves (fashionable, not for warmth), and costume jewelry. |
Work & Utility Clothing | Yes | Hard hats, steel-toe boots, welding gloves, fire-resistant overalls, scrubs, medical uniforms, aprons, police and firefighter uniforms. |
Costumes & Specialty Items | Yes | Theatrical costumes, cosplay outfits, Halloween costumes, mascot suits, wigs, theatrical makeup, stage accessories, and dance recital outfits. |
Kintsugi Intelligence automates location-based tax rate application, exemption management, and accurate reporting across all your one-click integrations to ERP, HR, and eCommerce systems like Shopify, BigCommerce, Amazon, Quickbooks, and Rippling.
Business Sales Tax Exemptions in Pennsylvania for Clothing
Certain clothing sales in Pennsylvania qualify for sales tax exemptions, primarily for resale, nonprofit organizations, and government purchases. Below is a breakdown of business exemptions and their requirements.
Table: Types of Sales Tax Exemptions for Clothing in Pennsylvania
Exemption Type | Eligibility | Required Documentation | Example Use Case |
|---|---|---|---|
Resale Exemption | Retailers buying inventory for resale | A clothing store purchases $10,000 in wholesale inventory tax-free. | |
Nonprofit Organizations | 501(c)(3) charitable organizations using clothing for their mission | Application for Sales Tax Exemption for Nonprofit Organizations (REV-72)**** | A homeless shelter buys winter coats tax-free for distribution. |
Government Purchases | Federal, state, and local government agencies | Pennsylvania Exemption Certificate (REV-1220) or official purchase order | A police department buys uniforms without paying sales tax. |
Interstate Sales | Clothing shipped outside Pennsylvania | Proof of shipment and delivery address | A retailer sells and ships $5,000 in clothing to a New York customer tax-free. |
Manufacturer Purchases | Clothing used as raw materials for production | A sportswear company buys fabric to produce shirts tax-free. |
Note on PA Nonprofit Exemption
For the Nonprofit Organizations exemption, nonprofits must first apply for tax-exempt status using the Application for Sales Tax Exemption for Nonprofit Organizations (REV-72). Once approved, they can use the Pennsylvania Exemption Certificate (REV-1220) for tax-exempt purchases.
Detailed Breakdown of Each Exemption Type in Pennsylvania
Pennsylvania offers sales tax exemptions for resale, nonprofit, government, interstate, and manufacturing purchases, with certain exceptions. Each exemption requires specific documentation, such as a resale certificate (REV-1220) or proof of shipment for out-of-state sales.
Pennsylvania Resale Exemption
Retailers and wholesalers can purchase tangible personal property, such as clothing inventory, without paying sales tax if the items will be resold.
Requires a Pennsylvania Sales Tax Exemption Certificate (REV-1220) provided to the supplier.
Misuse (buying items for personal use) can result in fines or revocation of exemption status.
Example: A boutique in Pittsburgh buys $50,000 in wholesale dresses tax-free with an REV-1220 certificate, saving $3,000 (6% tax exemption).
Pennsylvania Nonprofit Organizations
501(c)(3) nonprofits are eligible for sales tax exemptions when purchasing clothing for charitable use.
Must provide a valid Pennsylvania tax-exempt certificate to vendors at the time of purchase.
Example: A nonprofit church purchases 500 winter coats for donation, saving $1,500 in tax (6% on $25,000).
Pennsylvania Government Purchases
Purchases made directly by government agencies (federal, state, or local) are exempt from sales tax.
The agency must provide an exemption certificate or use an official purchase order.
Example: A state police department orders new uniforms, avoiding $4,000 in tax (8% on $50,000 in Philadelphia).
Pennsylvania Interstate Sales Exemption
Clothing shipped outside Pennsylvania is not subject to Pennsylvania sales tax.
The retailer must document proof of shipment, including invoices and shipping records.
Example: A Philadelphia retailer sells and ships $20,000 in clothing to a customer in Ohio, saving $1,600 in Pennsylvania sales tax (8%).
Pennsylvania Manufacturer Purchases Exemption
Businesses producing clothing (e.g., textile factories) may purchase raw materials tax-free.
Requires a valid manufacturing exemption certificate.
Example: A sportswear company buys $100,000 in fabric and sewing supplies, saving $6,000 (6% tax exemption).
Table: Example Savings for PA Businesses Using Clothing Exemptions
Businesses in Pennsylvania can save thousands annually by leveraging sales tax exemptions. For example, a retailer purchasing $50,000 in inventory for resale saves $3,000 (6%), while a manufacturer buying $100,000 in raw materials saves $6,000.
Exemption Type | Purchase Amount | Tax Rate | Tax Savings |
|---|---|---|---|
Resale Purchase | $50,000 inventory | 6% | $3,000 |
Nonprofit Purchase | $25,000 in coats | 6% | $1,500 |
Government Uniforms | $50,000 in police uniforms | 8% (Philadelphia) | $4,000 |
Out-of-State Sale | $20,000 shipped to Ohio | 8% (Philadelphia) | $1,600 |
Manufacturer Supplies | $100,000 in raw materials | 6% | $6,000 |
Table: Requirements for PA Businesses Claiming Clothing Exemptions
Pennsylvania businesses must provide valid exemption certificates (REV-1220), maintain detailed records, verify eligibility, and correctly classify sales.
Requirement | Details |
|---|---|
Proper Documentation | Businesses must provide valid exemption certificates (REV-1220 for resale, nonprofit exemption form, government exemption). |
Record-Keeping | Maintain invoices, shipping records, and exemption forms for at least 4 years in case of audits. |
Resale vs. Personal Use | Resale exemption cannot be used for personal purchases—misuse may result in fines or tax liability. |
Shipping Verification | Out-of-state shipments require proof of delivery to qualify for exemption. |
Periodic Renewal | Some exemptions (e.g., nonprofit status) must be renewed periodically. |
CQ For more details on Pennsylvania sales tax exemptions, read Kintsugi's guide: The Pennsylvania Sales Tax Exemption: 2025 Business Guide.
Table: Summary of Sales Tax Compliance for Businesses in Pennsylvania
Pennsylvania clothing retailers must comply with state tax regulations, correctly apply sales tax exemptions, and manage reporting requirements. Below are the most important factors:
Consideration | Details |
|---|---|
Sales Tax Exemptions | Everyday clothing (e.g., shirts, pants, coats, and shoes) is tax-exempt, while formal wear, accessories, and protective gear are taxable. |
Taxable vs. Non-Taxable Items | Retailers must classify inventory properly. Mislabeling taxable items (e.g., formal wear, handbags) as exempt can lead to compliance issues. |
Local Tax Variations | Pennsylvania has a 6% statewide tax, but Allegheny County (7%) and Philadelphia (8%) impose higher local sales taxes on taxable clothing. |
Resale Exemptions | Retailers purchasing inventory for resale must collect valid resale certificates from wholesalers to avoid sales tax on inventory, especially when considering the implications of economic nexus. |
Out-of-State Sales | Clothing shipped outside Pennsylvania to states like New Jersey is not subject to Pennsylvania sales tax, but retailers may need to collect tax in the destination state. |
Sales Tax Collection & Remittance | Businesses selling taxable clothing (e.g., formal wear, accessories, protective gear) must collect and remit sales tax to the Pennsylvania Department of Revenue. |
Filing & Reporting | Retailers must file sales tax returns on a monthly, quarterly, or annual basis, depending on sales volume. Late filings can result in penalties. |
Audit Compliance | Retailers should keep detailed records of taxable and non-taxable sales, customer exemptions, and tax filings to prepare for potential audits. |
Notes
Retailers must distinguish between taxable and non-taxable clothing.
Businesses in Allegheny County and Philadelphia must charge higher local sales taxes.
Valid resale certificates are required to avoid paying sales tax on inventory purchases.
Automate Sales Tax in Pennsylvania on Clothes for Your Business
Managing Pennsylvania sales tax compliance can be complex, from verifying local tax rates to tracking exemptions and meeting filing deadlines.
Kintsugi simplifies this process with powerful automation tools designed for modern businesses.
Challenge | How Kintsugi Helps | Benefits |
|---|---|---|
Clothing Tax Exemptions | Automatically identifies and applies Pennsylvania’s tax exemptions for most clothing items (e.g., shirts, pants, shoes). | Ensures compliance and reduces overpayment. |
Taxable Apparel Tracking | Differentiates taxable items (e.g., formal wear, accessories) from exempt clothing. | Prevents underpayment and penalties. |
Sales Tax Rate Accuracy | Automates calculations for Pennsylvania’s 6% state tax and local taxes where applicable. | Ensures precise tax collection. |
Exemption Certificate Management | Tracks and validates resale and nonprofit exemption certificates. | Reduces audit risks. |
Detailed Reporting | Generates accurate sales tax reports for state filings, separating taxable and exempt transactions. | Saves time and ensures compliance. |
Audit Preparation | Centralizes transaction and exemption certificate records for seamless audit readiness. | Minimizes penalties and risks. |
Streamlining Compliance With Kintsugi's Pennsylvania Sales Tax Guide
Let Kintsugi handle the complexities of Pennsylvania sales tax so you can focus on growing your business. Visit our Product Platform and Pricing pages to learn more and get started today!
