Tax Deductible Clothing: What You Can and Cannot Claim

Is All Work Clothing Tax Deductible?

Wouldn’t it be great if all clothes worn to work could be claimed as business expenses? Unfortunately, under New Zealand’s tax laws, this isn’t possible.

Tax Deductible Business-Related Clothing

To qualify as tax-deductible, clothing must serve a specific business purpose. Here are the main categories:

• Health and Safety Gear

Clothes required for health and safety reasons is tax-deductible. This includes protective clothing, uniforms, or any gear needed to meet workplace safety regulations. For example, safety boots, gloves, and high-visibility vests used in hazardous work environments can be claimed as business expenses.

• Branded Clothing

If your clothing is branded with your company’s logo and used exclusively for business purposes, it’s deductible. Items like branded polo shirts, jackets, and hats worn during work-related activities or at promotional events are eligible for a deduction.

Is Personal Clothing Deductible?

The general rule is that anything worn primarily for personal use, even if it’s worn at work, is not tax-deductible clothing. Here’s what typically falls into this category:

• Everyday Wear

Standard business attire, such as suits, blouses, or trousers, is not deductible. These items are considered personal clothing, even if worn to the office or client meetings. Since they don’t meet the specific requirements for business clothing, they fall under personal expenses.

• Fashionable Items

Even if you purchase trendy outfits to look professional, they aren’t deductible unless they are part of a uniform or branded with your company’s logo. Fashionable items, no matter how work-appropriate, do not qualify for a tax deduction.

Need Clarity on What’s Deductible?

If you’re still unsure whether your clothing is tax deductible, please get in touch. Business Like NZ has been providing professional, yet affordable tax and business advice to the Auckland region and beyond for years!

If you would like to know more about tax deductible expenses in general, check out our blog: What expenses are tax-deductible?