NYC sales tax is 8.875 percent on most purchases

New York City's combined sales tax rate is 8.875 percent. This is made up of the New York State sales tax (4 percent), the Metropolitan Transportation Authority tax (0.375 percent), and the New York City sales tax (4.5 percent). The rate applies to most goods and some services you buy within the five boroughs.

The rate is the same across Manhattan, Brooklyn, Queens, the Bronx, and Staten Island. If you buy something in a different New York county outside the city, the rate will be lower — typically between 7 and 8.375 percent depending on the county.

Sales tax is added at the point of sale. The price on the shelf or menu is almost always the pre-tax price, so you pay the tax on top of the listed amount. Online purchases shipped to an NYC address are also subject to sales tax.

Key Takeaways

  • NYC sales tax is 8.875 percent on taxable goods and services, made up of state, city, and transit authority taxes combined.
  • Groceries, prescription medications, and most clothing under $110 are exempt from sales tax in New York.
  • Restaurant meals, prepared foods, and most services (haircuts, repairs, professional services) are taxable at the full 8.875 percent rate.
  • The tax rate is the same across all five boroughs, but counties outside NYC have lower rates.

What is and is not taxed in New York City

Not everything you buy is subject to the 8.875 percent rate. New York has specific exemptions that matter for everyday purchases.

Exempt items include unprepared groceries (bread, milk, vegetables, meat from a butcher counter), prescription medications, and most clothing and footwear. Clothing is exempt regardless of price, though accessories like belts, scarves, and hats are taxable. Children's clothing is also exempt.

Taxable items include prepared or ready-to-eat food (sandwiches from a deli, pizza, coffee), restaurant meals, toiletries, over-the-counter medications, and most services. A haircut, dry cleaning, car repair, and plumbing work are all taxed at 8.875 percent.

The line between "prepared" and "unprepared" food matters. A rotisserie chicken from a grocery store is taxable because it is prepared. Raw chicken is not. A salad bar is taxable; loose vegetables are not. If you are unsure, ask the cashier or check the receipt — it will show whether tax was charged.

How sales tax affects your household budget

The 8.875 percent rate adds up quickly on large purchases. A $100 item costs $108.88 after tax. A $1,000 purchase costs $1,088.75. Over a year, the tax on groceries, services, and taxable goods can be several hundred dollars for a typical household.

If you are budgeting for a major purchase — furniture, electronics, appliances — remember to factor in the tax. Some retailers advertise prices before tax, so the final cost at checkout will be higher than the displayed price.

For business owners and self-employed people, sales tax collected from customers must be remitted to New York State. If you operate a business in NYC, you will need to register for a sales tax permit and file returns, usually monthly or quarterly depending on your sales volume.

Sales tax on online and out-of-state purchases

If you order something online and have it shipped to an NYC address, you owe sales tax at the 8.875 percent rate. Most major retailers now collect this tax automatically at checkout, so you see the full amount including tax before you pay.

Some smaller online sellers may not collect NYC sales tax at the time of purchase. In that case, technically you owe the tax to New York State as a "use tax" — but this is rarely enforced for individual purchases. If you are running a business and buying inventory online, you should track these purchases and report the use tax on your sales tax return.

If you pick up an order in person at a store outside NYC and bring it into the city, you do not owe additional tax. The tax is based on where the sale happens, not where you use the item.

Sales tax on services and professional work

Most services in NYC are taxable. This includes haircuts and salon services, dry cleaning, car repairs, plumbing, electrical work, and home renovation. The contractor or service provider charges you the 8.875 percent tax on their labor and materials.

Professional services like accounting, legal information, and consulting are generally not taxable. However, if a professional also sells you a product as part of the service, the product portion may be taxed. For example, an optometrist's exam is not taxed, but the eyeglasses or contact lenses are.

When you receive an invoice for services, the tax should be listed separately. If you are paying for a service and unsure whether tax applies, ask the provider before the work begins.

How to find the exact tax on a specific purchase

The easiest way to know the exact tax on something is to ask at the register or check your receipt after purchase. The receipt will show the pre-tax subtotal, the tax amount, and the total.

If you are planning a purchase and want to calculate the tax in advance, multiply the pre-tax price by 0.08875. For example: $100 × 0.08875 = $8.88 in tax, for a total of $108.88.

For items you are unsure about — whether something counts as prepared food, whether a service is taxable — the New York Department of Taxation and Finance website has a searchable database of taxable and exempt items. You can also call the department's helpline at 518-457-5181 during business hours.

Frequently Asked Questions

Is clothing always tax-free in NYC?

Most clothing and footwear is tax-free in New York, regardless of price. However, accessories like belts, scarves, gloves, and hats are taxable. If you are unsure whether an item counts as clothing or an accessory, the receipt will show whether tax was charged.

Do I pay sales tax on groceries?

Unprepared groceries — raw vegetables, meat, dairy, bread, and canned goods — are not taxed. Prepared or ready-to-eat foods like rotisserie chicken, deli sandwiches, and salad bar items are taxed at 8.875 percent. The distinction is whether the food is ready to eat when you buy it.

What about sales tax on restaurant meals?

Restaurant meals, including takeout and delivery, are taxed at 8.875 percent. This applies whether you eat in the restaurant or take the food home. The tax is calculated on the pre-tip total and appears on your bill before you add a tip.

Do I owe sales tax if I buy something online from outside New York?

If the item is shipped to an NYC address, you owe sales tax at 8.875 percent. Most online retailers collect this automatically. If they do not, you technically owe use tax to New York State, though this is rarely enforced for individual purchases.

Is there a difference in sales tax between the five boroughs?

No. The sales tax rate is 8.875 percent across Manhattan, Brooklyn, Queens, the Bronx, and Staten Island. However, if you buy something in a county outside NYC — like Westchester or Long Island — the rate will be lower.