New Jersey does not charge sales tax on clothing and shoes — making it one of the most shopper-friendly states in the US. Whether you’re buying a $30 t-shirt or a $500 designer coat, you pay the listed price and nothing more. For shoppers crossing the border from New York, Pennsylvania, or Connecticut, this tax exemption alone can save hundreds of dollars per trip at the outlets and malls in NJ.
What is Exempt from Sales Tax in NJ?
New Jersey exempts most clothing and footwear from its 6.625% state sales tax. This applies year-round with no minimum or maximum purchase amount — unlike some states that only exempt clothing during specific “tax holiday” weekends. The exemption covers:
- All types of clothing: shirts, pants, dresses, coats, suits, underwear, socks
- Footwear: sneakers, boots, heels, sandals, dress shoes
- Children’s clothing and baby items
- Athletic and sports apparel worn as clothing
What is NOT Exempt?
Not everything you buy in a clothing store is tax-free. NJ does charge sales tax on certain items, including:
- Handbags and purses — taxable at 6.625%
- Jewelry and watches — taxable
- Belts and wallets — taxable
- Sunglasses — taxable (unless prescription)
- Protective gear (helmets, safety equipment) — taxable
- Sports equipment (golf clubs, skis, etc.) — taxable
How Much Can You Save?
The savings depend on where you’re coming from and how much you spend. Here’s how NJ compares to neighboring states on clothing purchases:
- New York City: 4.5% state + 4.5% city = 8.875% tax on clothing over $110 per item
- Pennsylvania: 6% sales tax on clothing (with some exceptions)
- New Jersey: 0% on all clothing and shoes, always
On a $1,000 shopping trip, a New York City shopper would pay up to $88.75 in tax alone. In NJ, that same purchase costs exactly $1,000 — making the NJ outlet trip worth the drive even before you factor in the outlet discounts of 25–70% off retail.
Best Places to Shop Tax-Free in NJ
Every mall and outlet in New Jersey offers tax-free shopping on clothing. The best destinations for maximizing your savings combine NJ’s tax exemption with outlet-level discounts:
- Woodbury Common Premium Outlets (technically in NY, but just across the border — NY has no tax on clothing under $110 per item)
- Gloucester Premium Outlets — Simon outlet with 90+ stores in South Jersey
- Atlantic City Outlets (The Walk) — Tanger Outlets right in downtown Atlantic City
- Garden State Plaza — One of the largest malls in NJ, 300+ stores in Paramus
- The Mall at Short Hills — NJ’s top luxury shopping destination
- Flemington Outlets — Small but charming outlet village in Hunterdon County
Extra Savings: Outlet Discounts + No Tax
New Jersey outlets already offer merchandise at 25–70% below regular retail prices. Add the 0% clothing tax and you’re looking at significantly lower costs compared to shopping at a regular full-price store in a taxed state. To maximize savings even further, sign up for VIP Shopper Club memberships at Simon and Tanger outlets, which provide free coupon books worth hundreds of dollars in additional discounts. Read more about how to get coupons and deals at NJ malls.