Fifty State Survey on the Sales Tax Treatment of Diapers
Alison M. Weir, J.D., National Diaper Bank Network, with assistance from Yale Law School’s
Arthur Liman Research Project (Spring 2012), Matthew Smith, Irina Vaynerman, Tara Rice
Most Common Means by which Diapers are Exempt
Sale tax policies vary tremendously among the states, and there is little consistency
between the states regarding taxation of diapers. The following survey identifies the sales tax
policy of each state regarding diapers and, for those states that do not exempt diapers, identifies
any exemptions to the tax that might be the basis of a campaign to extend sales tax exemption to
diapers.
Five states do not have a sales tax for any items. These states include: Alaska, Delaware,
Montana, New Hampshire, and Oregon.
Several states currently exempt diapers from sales taxation. These states include:
Massachusetts (under the exemption: healthcare items), Minnesota (under the exemption:
clothing), New Jersey (under the exemption: clothing), New York, Pennsylvania, Rhode Island
(under the exemption: clothing), and Vermont (under the exemption: clothing).
Certain states exempt adult diapers, but not baby diapers, from sales taxation:
Connecticut, Maryland, and North Dakota.
Wisconsin exempts cleaning services for cloth diapers; however disposable and cloth
diapers are not tax exempt.
In some states which otherwise tax sales of diapers, diapers are exempt during annual
sales tax holidays. These states include Alabama, Arkansas, Florida, Georgia, Iowa, Louisiana,
Mississippi, Missouri, New Mexico, North Carolina, Oklahoma, South Carolina (baby diapers
only), Tennessee, Texas, and Virginia.
Most states tax both cloth and disposable diapers. In those states, items which are exempt
from sales tax include prescription drugs, groceries, medical supplies, and baby products
(Texas). Some states do not exempt any items from the state sales tax.
1
Fifty State Survey
STATE
IS THERE A
SALES TAX?
ARE DIAPERS
SUBJECT TO
THE TAX AND AT
WHAT RATE?
Alabama
Yes, 4% but up to
10% with local
surtax.1
Yes, 4% but up to
10% with local
surtax.
Alaska
No.3
No.
Arizona
Not technically, but it
has a transaction
privilege tax (TPT)
which essentially
serves like a sales tax
with an effective rate
of 6.6% for the
consumer and up to
10.6%.4
Yes, 6% base.
Yes, anywhere from
6.6% to 10.6%.
Food products for home
consumption and
prescription drugs and
certain medical devices
are exempt.
Yes, 6% base.
Yes, 7.25% but up to
9.75% in different
cities.7
Yes, 7.25% but up to
9.75% in different
cities.8
Prescription drugs are
the only exempt item.
Additionally, groceries
are only taxed at 1.5%.5
Arkansas also has a
sales tax holiday once a
year and diapers are
exempt during this
time.6 Diapers are
exempt under the
clothing category.
Prescription drugs and
groceries are exempt.
Arkansas
California
ARE THERE ANY
OBVIOUS SALE
TAX EXEMPTIONS
THAT COULD BE
APPLIED TO
DIAPERS?
Prescription drugs are
exempt.
Alabama has a sales tax
holiday once a year and
diapers are exempt
during that holiday.2
Diapers are exempt
under the clothing
category
NOTES
.
1
http://www.ador.state.al.us/salestax/staterates.html
See eAlabama 810-6-3-.65; http://www.revenue.alabama.gov/salestax/STHolidayQuickRefSheet12.pdf
3
http://www.tax.alaska.gov/programs/programs/index.aspx?10002
4
http://www.modelcitytaxcode.org/pdf/CombinedRateSheet.pdf
5
http://www.dfa.arkansas.gov/offices/exciseTax/salesanduse/Documents/whatsnew2011.pdf
6
http://www.dfa.arkansas.gov/offices/exciseTax/salesanduse/Documents/holidayItemized.pdf
7
http://www.boe.ca.gov/sutax/pdf/Pending_Rates.pdf
8
http://www.boe.ca.gov/sutax/pdf/Pending_Rates.pdf
2
2
Yes, 2.9% but up to
8%.9
Yes, 2.9% but up to
8%. 10
Connecticut
Yes, 6.35%.14
Baby diapers, yes,
6.35%.15
Adult diapers are
tax exempt.
Delaware
No.
No
Florida
Yes, 6%, but up to
7.5%.18
Yes, 6%, but up to
7.5%.19
Colorado
Groceries are exempt.11
Prescription drugs and
durable medical
equipment are
exempt,12 but medical
supplies (including
diapers) are not.
Adult diapers are
exempt under exempt
medical goods and
equipment:
“Disposable pads used
for incontinency. Sales
of certain disposable
pads prepared for use in
the manner of a diaper
or as an underpad, and
commonly used by
persons who are
incontinent.”16 Conn.
Gen. Stat. §12-412(53)
However, disposable
and cloth diapers for
babies are not exempt.
Non-profit
organizations
may be exempt
from paying sales
tax.13
A full list of
exemptions is
available online.17
Prior exemptions
for clothing and
nonprescription
medicine were
repealed in 2011.
Non-profit
organizations
may be exempt
from paying sales
tax.
Delaware
imposes a gross
receipts tax on the
seller of goods or
provider of
services in the
state. Business
and occupational
license tax rates
range from 0.096
percent to
1.92 percent,
depending upon
the category of
business activity.
Groceries and
prescription drugs are
exempt.
Non-profit
organizations
may be exempt
9
http://www.colorado.gov/cms/forms/dor-tax/dr1002.pdf
http://www.colorado.gov/cms/forms/dor-tax/dr1002.pdf
11
http://www.colorado.gov/cms/forms/dor-tax/dr1002.pdf
12
Colo. Rev. Stat. §39-26-717.
13
Colo. Rev. Stat. §39-26-718.
14
http://www.cga.ct.gov/2011/rpt/2011-R-0238.htm
15
http://www.cga.ct.gov/2011/rpt/2011-R-0238.htm
16
http://www.cga.ct.gov/2011/pub/chap219.htm#Sec12-412.htm
17
http://www.ct.gov/drs/cwp/view.asp?a=1477&Q=269920&drsPNavCtr=|40829|#40951
18
http://dor.myflorida.com/dor/taxes/sales_tax.html
19
http://dor.myflorida.com/dor/taxes/sales_tax.html
10
3
Diapers are exempt
during the sales tax
holiday once a year.20
Groceries are exempt.
Georgia has a sales tax
holiday, during which
diapers are exempt.
Georgia
Yes, 4% but up to
7%.21
Yes, 4% but up to
7%.
Hawaii
Hawaii does not have
a sales tax; instead,
Hawaii has a general
excise tax, which is
assessed on all
business activitiesbut that's usually
passed on to the
consumer at a rate of
4%, and the
maximum HI sales
tax after local
surtaxes is 4.712%.23
Yes under the
general excise tax,
4%, and the
maximum HI sales
tax after local
surtaxes is 4.712%.
Idaho
Yes, 6%24
Yes, 6%
Prescription drugs are
exempt.25
Illinois
Yes, 6.25% but up to
11.5%.
Yes, 6.25% but up to
11.5%.
Qualifying food, drug,
medicines, and medical
appliances have sales
tax of 1% plus local
home rule tax,
depending on the
location where
purchased.27 Hygiene
products, including
from paying sales
tax.
The Georgia
legislature is
currently trying to
revive its sales
tax holiday, but
the last time they
had one was in
2009.22
While Hawaii
does not have a
sales tax, it does
have a general
excise tax which
applies to almost
all sales of goods
and services. The
general excise tax
is charged to the
business rather
than the
customer, but the
business may
pass some or all
of the tax on to
their customers.
Certain nonprofits may be
exempt from
paying sales tax if
their organization
is specifically
exempt.26
Non-profits may
be exempt from
the sales tax.
20
http://dor.myflorida.com/dor/tips/pdf/tip11a01-03.pdf
https://etax.dor.ga.gov/salestax/salestaxrates/LGS_2012_Apr_Rate_Chart.pdf
22
http://gbpi.org/wp-content/uploads/2012/03/HB-993_factsheet-_LC-34-3380S.pdf
23
http://www6.hawaii.gov/tax/a7_faq.htm#get
24
http://tax.idaho.gov/i-1109.cfm#suhttp://tax.idaho.gov/i-1109.cfm#sub13
25
http://tax.idaho.gov/i-1109.cfm#sub13
26
http://tax.idaho.gov/pubs/EBR00050_09-29-2006.pdf.
27
See: http://iltax.com/LegalInformation/regs/part130/130-310.pdf;
http://www.ilga.gov/commission/jcar/admincode/086/086001300C03110R.html
21
4
baby and adult diapers,
are specifically
excluded from the
reduced rate.
Indiana
Yes, 7% but up to
9%.28
Yes, 7% but up to
9%.29
Groceries and
prescription drugs are
exempt.
Iowa
Yes, 6% but up to
7%.30
Yes, 6% but up to
7%.31
Kansas
Yes, 6.3% but up to
8.65%.33
Yes, 6.3% but up to
8.65%.34
Kentucky
Yes, 6%.36
Yes, 6%.37
Diapers are exempt
during the sales tax
holiday32 as one of
many items exempt
during the sales tax
holiday. Other items
include: clothing items,
school supplies, sports
equipment.
There are no
exemptions. The
Kansas legislature is
considering creating a
sales tax holiday.35
Groceries are exempt.38
Louisiana
Yes, 4%.39
Yes, 4%.40
Non-profit
organizations
may be exempt
from paying sales
tax.
Private non-profit
educational
institutions are
exempt from
paying sales tax,
but other
nonprofit
organizations are
not.
Non-profit
organizations
may be exempt
from paying sales
tax.
Non-profit
organizations
may be exempt
from paying sales
tax.
Prescription drugs and
food for home
consumption are
exempt.
Diapers are exempt
during the sales tax
holiday which happens
annually.41 The
exemption applies
statewide to all
consumer purchases of
28
http://www.in.gov/dor/3885.htm
http://www.in.gov/dor/3885.htm
30
http://www.iowa.gov/tax/educate/faqsales.html
31
http://www.iowa.gov/tax/educate/faqsales.html
32
http://www.iowa.gov/tax/educate/STHList.pdf
33
http://www.ksrevenue.org/pdf/StateLocalSalesRates.pdf
34
http://www.ksrevenue.org/pdf/StateLocalSalesRates.pdf
35
http://www.bizjournals.com/wichita/morning_call/2012/02/kansas-legislature-considering-sales.html
36
http://revenue.ky.gov/business/salesanduse.htm
37
http://revenue.ky.gov/business/salesanduse.htm
38
http://revenue.ky.gov/NR/rdonlyres/332F2097-1179-4EBC-989F-C5074B482593/0/sufacts_v6n2.pdf
39
http://www.revenue.louisiana.gov/sections/faq/default.aspx?type=gen&cat=SLS
40
http://www.revenue.louisiana.gov/sections/faq/default.aspx?type=gen&cat=SLS
41
http://revenue.louisiana.gov/sections/general/hottopics/salestaxholiday.aspx#ind-eligible.
29
5
Maryland
Yes: 5% for general
services and use; 7%
for lodging and
prepared food; and
10% for short term
auto rental
Yes, 6%
Massachusetts
Yes, at 6.25%
No. Diapers are not
taxed in MA. They
fall explicitly under
the statutory
exception for
healthcare items.45
Michigan
Yes, at 6%
Yes at 6%.
Minnesota
Yes, at 6.875% with
some local
variation.46
No. Diapers are not
taxed in MN. They
are exempt from
taxation as
clothing.47
Maine
Yes at 5%.
Baby diapers, Yes at
6%
Adult incontinence
pads, No.
tangible personal
property, other than
vehicles subject to
license and title and
meals furnished for
consumption on the
premises where
purchased, including togo orders, provided that
the property is not for
use in a business, trade,
or profession.42
Grocery staples are not
taxed. They are defined
as items normally
consumed for human
nourishment. 43
Non-profit
organizations
may be exempt
from paying sales
tax.
Certain items which
qualify as "medicine"
and are therefore
exempt from the sales
tax are analogous to
diapers: baby oil, baby
powder, sanitary
napkins, and tampons.
Additionally, adult (but
not infant) diapers are
exempt from the sales
tax as disposable
medical supplies.44
Michigan exempts food
and prescription drugs.
There are
exemptions for
non-profit groups
and other entities.
42
http://revenue.louisiana.gov/sections/general/hottopics/salestaxholiday.aspx#ret-eligible
http://www.state.me.us/revenue/salesuse/Bull12.pdf
44
http://individuals.marylandtaxes.com/usetax/medical.asp
45
http://www.noreascon.org/exhibits/dealersinfo/sls_use.pdf
46
http://taxes.state.mn.us/sales/pages/publications_fact_sheets_by_name_sales_fact_sheet_by_name.aspx
47
http://www.revenue.state.mn.us/businesses/sut/factsheets/FS105.pdf
43
6
Mississippi
Yes, at 7%
Yes, at 7%.
Missouri
Yes, at 4.225%, but
up to 10.725%
Yes, at 4.225%, but
up to 10.725%
Montana
Nebraska
No
Yes, at 5.5% but up
to 7%
No
Yes, at 5.5% but up
to 7%
Nevada
Yes, at 6.85%%. but
up to 8.10%
Yes, at 6.85%%. but
up to 8.10%
New
Hampshire
New Hampshire does
not have a general
sales tax.52
Yes, at 7%.
No.
New Jersey
There is a medicine and
drug exemption.48
Mississippi has a sales
tax holiday which
includes diapers.
There is an exemption
for medical equipment
and drugs. However,
incontinent pants are
specifically excluded
from the exemption.49
Missouri has a sales tax
holiday, although not
all cities participate.
Diapers are included in
the holiday.
Non-profit
organizations
may be exempt
from paying sales
tax.
Home medical supplies
and prescription
medicines are
exempted; however .
“items for personal
comfort, hygiene, or
cosmetic purposes,” are
specifically excluded
from the exemption.50
Groceries are exempt to
the extent that they
include unprepared
food.51
Nonprofit
organizations
may be exempt
from paying sales
tax.
No. They are exempt
as clothing.53
New Mexico
Yes, at a base rate of
5.125%, up to
8.188%.
Yes, at a base rate of
5.125%, up to
8.188%.
Diapers are exempt
during New Mexico’s
sales tax holiday.54
New York
Yes, at a base rate of
4% and up to
8.825%.
No, under the
exemption for
clothing. The
exemption may not
Diapers are included in
the clothing exemption
and incontinence
supplies are identified
48
http://www.dor.ms.gov/taxareas/sales/Exemptionssalestax.html
http://dor.mo.gov/faq/business/exempt.php#q11
50
http://www.revenue.ne.gov/legal/regs/slstaxregs.html#050
51
Nev. R.S. 372. 284; http://www.leg.state.nv.us/nrs/NRS-372.html#NRS372Sec284; see also
http://tax.state.nv.us/about%20taxes%20and%20faqs.html#Taxability_of_items
52
http://www.revenue.nh.gov/faq/gti-rev.htm
53
N.J.S.A. 54:32N-8.4; http://www.state.nj.us/treasury/taxation/pdf/saletaxcloth.pdf
54
http://www.scribd.com/doc/18110481/New-Mexico-Taxation-and-Revenue-Department
49
7
apply to locally
applied sales taxes
as medical supplies
exempt from sales tax.55
North
Carolina
Yes, at a base rate of
4.75%, and up to 7%
Yes, at a base rate of
4.75%, and up to 7%
Diapers are exempt
during periodic sales
tax holidays.56 Diapers
are exempt under the
clothing category.
North Dakota
Yes, at a base rate of
5%, and up to 7.5%
Baby diapers, yes, at
a base rate of 5%,
and up to 7.5%
Adult diapers, no.
Adult diapers are
exempt, under the
category of Diabetic,
Bladder Dysfunction
and Ostomy Supplies.57
Ohio
Yes, at a base rate of
5.5%, and up to 8.5%
Yes, at a base rate of
5.5%, and up to
8.5%
Food and prescription
drugs and some medical
supplies, but not
incontinence supplies,
are exempt.
Oklahoma
Yes, at a base rate of
4.5%, and up to
9.15%
Yes, at a base rate of
4.5%, and up to
9.15%
Prescription drugs are
exempt. Diapers are
exempt during periodic
sales tax holidays.58
Diapers are exempt
under the clothing
category.
Oregon
No.
Rhode Island
No. The state does
not have a sales tax.
Yes, at a base rate of
6%, and up to 8%.
Yes, at 7%.
South
Carolina
Yes, at a base rate of
6%, and up to 8.5%.
Pennsylvania
No, diapers are
exempt.59
No, diapers are
exempt as clothing.60
Yes, at a base rate of
6%, and up to 8.5%.
Certain non-profit
health or meal
delivery
organizations
may be exempt
from paying sales
tax.
Sales to
charitable
nonprofits
operating only
within Ohio may
be exempt.
Certain medical devices
are exempt, but not
incontinence pads.
Baby diapers are
exempt during sales tax
holidays. 61
55
http://www.tax.ny.gov/pdf/publications/sales/pub822.pdf; http://www.tax.ny.gov/pdf/memos/sales/m06_6s.pdf;
http://www.tax.ny.gov/pdf/publications/sales/pub718c.pdf
56
http://www.dornc.com/taxes/sales/holiday_exempt.pdf
57
ND 57-39.2, http://www.legis.nd.gov/cencode/t57c39-2.pdf; http://www.nd.gov/tax/salesanduse/pubs/guide/gl21810.pdf. A bill was introduced in February 2011 to exempt clothing from the sales tax, but this bill was defeated
in the ND Senate. http://legis.nd.gov/assembly/62-2011/bill-status/senate/SB2333.PDF
58
http://www.tax.ok.gov/rules/sth6509.pdf
59
61 Pa. Code. §9.2; http://www.pacode.com/secure/data/061/chapter9/s9.2.html
60
Reg. S.U. 07-13; http://www.tax.ri.gov/regulations/salestax/07-13.php
8
South Dakota
Yes, at a base rate of
4%, and up to 6%62
Yes, at a base rate of
4%, and up to 6%63
Tennessee
Yes, at a base rate of
7.0%, and up to
9.75%.
Yes, at a base rate of
7.0%, and up to
9.75%.
Texas
Yes, at a base rate of
6.25%, and up to
8.25%
Yes at a base rate of
6.25%, and up to
8.25%
Utah
Yes, at a base rate of
4.7%, and up to
8.35%
Yes, at a base rate of
4.7%, and up to
8.35%
Prescription drugs and
certain medical supplies
are exempt. The statute
is silent on the question
of incontinence pads;
the language, however,
suggests that
incontinence supplies
acquired with a
prescription would be
tax exempt.64
Diapers are exempt
during periodic sales
tax holidays.65
There is an exemption
for baby products, but
the exemption does not
include diapers.66
Diapers (adult and
baby) are exempt
during the Texas sales
tax holiday.67
Grocery food is subject
to a reduced sales tax
rate of 3%.
Sales of medication
Non-profit
organizations
may be exempt
from paying sales
tax.
Non-profit
organizations
may be exempt
from paying sales
tax.
Non-profit
organizations
may be exempt
from paying sales
61
S.C. Code §12-36-2120. http://www.scstatehouse.gov/code/t12c036.php#12-36-2120. N.B., a bill to remove the
tax exemption for durable medical devices was recently passed by the South Carolina General Assembly. See H.
3747
62
http://www.state.sd.us/drr2/businesstax/municipaltax/municipaltaxrates_July12.htm#AKASKA, Note, Tribal
communities, although not subject to S.D. tax, do apply a sales tax between 2 and 4% which is split between the
state and the tribe. See S.D. Dept of Revenue “Tribal” Fact Sheet, dated Dec. 2011.
63
http://www.state.sd.us/drr2/businesstax/municipaltax/municipaltaxrates_July12.htm#AKASKA, Note, Tribal
communities, although not subject to S.D. tax, do apply a sales tax between 2 and 4% which is split between the
state and the tribe. See S.D. Dept of Revenue “Tribal” Fact Sheet, dated Dec. 2011.
64
S.D. Code §10-45-14.12 reads
if the medical device is prescribed by prescription by a physician, chiropractor, optometrist,
dentist, podiatrist, or audiologist. The term, medical device, means any instrument, apparatus,
implement, contrivance, or other similar or related article, including a component, part, or
accessory, that is prescribed for use on a single patient and that is:
(1)
Recognized in the official National Formulary, or the United States Pharmacopoeia,
or any supplement to them;
(2)
Intended for use in the diagnosis of disease or other conditions, or in the cure,
mitigation, treatment, detection, or prevention of disease, of the human body; or
(3)
Intended to affect the structure or any function of the human body, and that does
not achieve any of its primary intended purposes through chemical action within or on the human
body and that is not dependent upon being metabolized for the achievement of any of its primary
intended purposes.
http://www.state.sd.us/drr2/businesstax/publications/st/salestaxguide.pdf
65
http://www.tn.gov/revenue/salestaxholiday/STH%20Alpha%20List.pdf
66
http://www.window.state.tx.us/taxinfo/taxpubs/tx96_280.pdf
67
http://www.window.state.tx.us/taxinfo/taxpubs/tx98_490/tx98_490.html
9
bought with a
prescription are tax
exempt.
Vermont
Yes, at a base rate of
6%, and up to 7%
No, diapers are
exempt as clothing.
Virginia
Yes, at a base rate of
4%, and up to 5%.
Yes, at a base rate of
4%, and up to 5%.
Washington
Yes, at a base rate of
6.5%, and up to
9.5%.
Yes, at a base rate of
6.5%, and up to
9.5%.
West Virginia
Yes, at a base rate
6% and up to 7% in
two cities.
Yes, at a base rate
6% and up to 7% in
two cities.
Wisconsin
Yes, at a base rate of
5%, and up to 5.5%
Yes at a base rate of
5%, and up to 5.5%.
Wyoming
Yes, at a base rate of
4%, and up to 6%.
Yes, at a base rate of
4%, and up to 6%.
tax on purchases
pursuant to a
contract or in
excess of $1000
Clothing is exempt.68
Diapers are included in
the definition of
“clothing.”69
Virginia taxes eligible
food items at a reduced
rate of 2.5%, subject to
an additional 1% local
tax. Virginia exempts
"durable medical
devices" from sales tax
but not diapers. Diapers
are exempt during a
sale tax holiday held in
August for clothing and
school supplies..70
Certain food and
prescription drugs are
exempt.71
Food for human
consumption is taxed at
a reduced rate.
Medications and
medical supplies with a
prescription are exempt
from the tax.
Until recently cloth
diapers and diaper
cleaning services were
exempt. Cloth diapers
are no longer exempt
but the cleaning
services remain
exempt.72
Food for home
consumption, water
delivered by pipeline or
truck, medical devices
and medical supplies
are exempt as “essential
for human goods and
services.”73 The
statute does not speak
Certain nonprofits
may be exempt
from sales tax.
Non-profit
organizations
may be exempt
from paying sales
tax.
Non-profit
organizations
may be exempt
from paying sales
tax.
68
32 V.S.A. §9741.
32 V.S.A. §9701(24)(A)(x)
70
See Va. Code §58.1-611.2; http://www.tax.virginia.gov/Documents/2011%20August%20FAQs.pdf
71
Wash. Ann. Code §§458-20-18801 and 458-20-244
72
http://www.dor.state.wi.us/pubs/pb201.pdf
73
Wyo. S. 39-15-105
69
10
directly to diapers.
11