Depends: sometimes pass it on to family or friends, ever even send some stuff to a Yoorslid here that was in trouble, sometimes selling (designer clothes in good condition) and sometimes in the container. If it is really worn out, such as socks and underwear, this is an ideal rag to degrease a chain or clean something out, for example.
Recycle or sell or give away or take them to the cycle or use them as cleaning cloths and then discard. In this blog, for example, I use old garments https://y.is/8mHtJ
I usually give away children's clothes to other children. My clothes often just go into the clothing container. However, if the clothing is worn or something, it disappears into the bin.