Kim Kardashian’s Clothing Company Settles New Jersey Sales Tax Allegations

Sales Tax | January 20, 2026

Kim Kardashian’s Clothing Company Settles New Jersey Sales Tax Allegations

SKIMS has agreed to pay a $200,000 civil penalty to New Jersey to settle allegations that it collected sales tax on tax-exempt clothing items sold to New Jersey customers.

By Nicolas Fernandes
nj.com
(TNS)

An online apparel company co-founded by Kim Kardashian has agreed to pay a $200,000 civil penalty to New Jersey.

SKIMS will pay the fine to settle allegations that it collected sales tax on tax-exempt clothing items sold to New Jersey customers, the state Attorney General’s Office said Tuesday.

The office’s Division of Consumer Affairs alleged that SKIMS improperly charged sales tax to New Jersey customers between 2019 and 2024, violating the state’s Consumer Fraud Act.

State tax laws prohibit sales tax on everyday clothing and footwear items.

“As prices on everything from clothing to groceries soar, our office is committed to protecting our residents from unlawful practices that drive up the prices they pay at the register,” New Jersey Attorney General Matthew J. Platkin said. “We’re holding SKIMS accountable because their conduct harmed New Jersey consumers by requiring them to pay more than what they owed.”

In a consent order filed with the Division of Consumer Affairs, SKIMS agreed to pay the $200,000 penalty, implement new procedures to ensure New Jersey customers are not paying sales tax on tax-exempt items and continue issuing refunds to the customers who were improperly charged.

The company previously remitted the collected sales tax to the state Division of Taxation and began refunding impacted customers, officials said.

A spokesperson for SKIMS could not immediately be reached on Tuesday afternoon.

SKIMS, which was co-founded by Kardashian in 2019, markets itself as a body positivity and inclusivity apparel company. The company specializes in shape wear and undergarments, with sizes ranging from XXS to 5XL.

It made the list of TIME’s 100 Most Influential Companies of 2022.

Photo caption: Kim Kardashian is shown in a television ad for the clothing brand she co-founded, SKIMS.

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©2026 Advance Local Media LLC. Visit nj.com. Distributed by Tribune Content Agency LLC.

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