We explore in this paper the efficient clustering of item data. Different from those of the traditional data, the features of item data are known to be of high dimensionality and sparsity. In view of the features of item data, we devise in this paper a novel measurement, called the association-taxonomy similarity, and utilize this measurement to perform the clustering. With this association-taxonomy similarity measurement, we develop an efficient clustering algorithm, called algorithm AT (standing for Association-Taxonomy), for item data. Two validation indexes based on association and taxonomy properties are also devised to assess the quality of clustering for item data. As validated by the real dataset, it is shown by our experimental results that algorithm AT devised in this paper significantly out-performs the prior works in the clustering quality as measured by the validation indexes, indicating the usefulness of association-taxonomy similarity in item data clustering.