Is there a reason to wear special nice clothing on Hanukkah?
I would guess not as since there is no festive meal, it doesn't seem like it is a festive day.
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The Kaf HaChaim http://hebrewbooks.org/pdfpager.aspx?req=14422&st=&pgnum=340 says that there are 3 levels of nicer clothing. The nicest ones are for Yom Tov, the next level is for Shabbos, and the lower level is for Chol HaMoed, Rosh Chodesh, Chanuka & Purim.