No. Jogging bras are exempt from sales tax in Massachusetts according to Chapter 64H, Section 2 of the Massachusetts General Laws.
Handbags and Clothing
Handbags costing over $175 would be subject to the 6.25% sales tax rate on the amount over $175. Items costing less than $175 like most clothing articles are exempt from sales tax in Massachusetts. For example, yarn used to make clothing is not taxable.
General Sales Tax Information
Massachusetts has a statewide sales tax rate of 6.25%. This applies to retail sales of most tangible goods. Exceptions include:
- Food
- Health products
- Periodicals
- Clothing items under $175.
Income and Property Taxes
Regarding income tax, Massachusetts has a flat individual income tax rate of 5%. This rate applies to all taxable income. Voters recently approved an additional 4% income tax on amounts over $1 million starting in 2023.
Social Security benefits are not taxed. Retirement income from federal, state and local government plans is exempt as well. Property taxes average 1.14% of assessed home value statewide. Rates vary locally.
Sales Tax Rates and Exemptions
In Massachusetts, sales tax is legally required to be collected from all tangible, physical products being sold to a consumer. Exceptions to this tax include:
- Most food and grocery items
- Certain health and sanitation products
- Periodicals and newspapers
- Clothing items under $175
- Prescribed medical devices
Services like janitorial services are also exempt from sales tax in Massachusetts.
Tangible Personal Property Tax
Physical property like furniture, appliances, and vehicles are subject to the 6.25% statewide sales tax rate.
Business Sales Tax Compliance
For businesses, sales tax collection, filing and payments need to be handled correctly to avoid issues. Key requirements include:
- Determining if your business has nexus in Massachusetts
- Registering for a sales tax license
- Properly collecting and remitting sales tax
- Carefully tracking sales, refunds, and returns
- Filing returns and paying sales tax on time
Taxation on Clothing Brands
Clothing items under $175 are exempt from sales tax in Massachusetts. Items over $175 are taxable at 6.25%. Online sellers must charge sales tax on the amount over $175.
Other States Information
South Carolina has varying sales tax rates by city. Vermont exempts most clothing and footwear sales except accessories, protective gear, and recreational equipment.
States with no sales tax on clothing include Massachusetts, Minnesota, New Jersey, New York, Pennsylvania.
Online Purchases and Industry Margins
You must pay duty and taxes on all imported online purchases over $20. States with no sales tax: Alaska, Delaware, Montana, New Hampshire, Oregon.
Profit margins in the clothing industry range from 4% to 13%. Comparing markups to the cost of goods sold shows high profit percentages.