Sales tax in New York is a tax on the purchase price of most goods and some services, collected by the seller at the point of sale.
New York has a statewide sales tax rate of 4 percent. Most counties add their own local sales tax on top of that, so the total rate you pay depends on where you buy. In New York City, for example, the combined rate is 8.875 percent. In Erie County it is 8 percent. In some rural counties it is lower. The seller is responsible for collecting the tax from you and sending it to the state and local tax authorities.
You do not file sales tax yourself as a buyer — the store handles it. But if you own a business that sells taxable items, you must register with the New York Department of Taxation and Finance, collect sales tax from customers, and file returns on a schedule the state sets. The frequency depends on how much you sell: high-volume sellers file monthly, smaller sellers file quarterly or annually.
Key Takeaways
- New York's statewide sales tax rate is 4 percent, but your total rate includes local county and city taxes, which vary by location.
- Sales tax applies to most physical goods and to some services like hotel stays, restaurant meals, and certain repairs, but not to groceries, prescription drugs, or most clothing under $110.
- If you buy something online from a seller with a physical presence in New York, sales tax is charged; if the seller has no New York location, tax may not be collected at checkout.
- Business owners must register with the New York Department of Taxation and Finance before opening and file sales tax returns on a schedule based on their sales volume.
What goods and services are taxed in New York
Most physical items are subject to sales tax: clothing, electronics, furniture, tools, and household goods. Restaurant meals and prepared foods are taxed. Hotel and motel stays are taxed. Haircuts and salon services are taxed. Repairs to tangible property — fixing a car, repairing a watch, replacing a phone screen — are taxed.
Some things are not taxed. Groceries and food you prepare at home are exempt. Prescription drugs are exempt. Clothing and footwear under $110 per item are exempt (anything over $110 is taxed). Newspapers and magazines are exempt. Most medical equipment is exempt. Certain services like legal information and accounting are not subject to sales tax.
The line between taxable and exempt can be confusing. A candy bar is taxed. A loaf of bread is not. A hot pizza slice is taxed; a cold pizza slice you take home is not. If you are unsure whether something you sell or buy is taxable, the New York Department of Taxation and Finance publishes detailed guidance on its website, organized by industry and product type.
Sales tax rates by location in New York
The statewide rate is 4 percent. Every county adds a local rate on top of that. The combined rate ranges from 7 percent in some upstate counties to 8.875 percent in New York City. The table below shows the combined rate in major areas.
| Location | Combined Sales Tax Rate |
|---|---|
| New York City (all five boroughs) | 8.875% |
| Westchester County | 8.875% |
| Nassau County | 8.875% |
| Suffolk County | 8.875% |
| Erie County (Buffalo area) | 8% |
| Monroe County (Rochester area) | 8% |
| Onondaga County (Syracuse area) | 8% |
| Albany County | 8% |
| Tompkins County (Ithaca area) | 7% |
The rate that applies is the rate where the sale takes place. If you buy something in a store in New York City, you pay the NYC rate. If you buy the same item in a store in Tompkins County, you pay the Tompkins rate. If you buy online, the rate depends on where the seller's business is located or where the item is shipped to — this varies by seller.
How sales tax works when you buy online
If you order from a retailer that has a physical store, warehouse, or office in New York, the retailer must collect New York sales tax at checkout. This includes large online retailers like Amazon that have fulfillment centers in the state. The tax is calculated based on the shipping address you provide.
If you order from a seller with no physical presence in New York — a small business in another state, for example — the seller may not collect New York sales tax at checkout. In that case, you are technically responsible for paying "use tax" on the purchase, which is the same rate as sales tax. Most individual buyers do not pay use tax, but it is owed under New York law. If you run a business and make tax-exempt purchases from out-of-state sellers, you should keep records in case the state asks about them.
Some online marketplaces like eBay and Etsy collect sales tax on behalf of their sellers. Check your receipt to see whether tax was included. If you are unsure, contact the seller or the marketplace.
What business owners need to do about sales tax
If you own a business that sells taxable goods or services in New York, you must register with the New York Department of Taxation and Finance before you start selling. You will receive a sales tax ID number. You then collect sales tax from customers on every taxable sale and file returns with the state on a schedule it assigns to you.
The filing schedule depends on your sales volume. If you sell more than $300,000 per year, you file monthly. If you sell between $75,000 and $300,000 per year, you file quarterly. If you sell less than $75,000 per year, you file annually. You can request a different schedule if your situation changes. You file returns through the New York Department of Taxation and Finance's online system, TPAC (Tax Processing and Compliance).
You must keep records of all sales, including receipts and invoices, for at least three years. If you claim that a sale was exempt from tax — for example, a sale to a reseller who has a resale certificate — you must keep the resale certificate on file. The state can audit your records at any time, and penalties for not collecting or filing sales tax correctly can be substantial.
Resale certificates and tax-exempt sales
If you buy goods to resell them, you do not pay sales tax on the purchase. Instead, you provide the seller with a resale certificate, which is a form that tells the seller you are buying for resale and are exempt from tax. You must have a valid resale certificate number from the New York Department of Taxation and Finance to use this exemption.
Other entities can also buy tax-exempt: nonprofits, schools, government agencies, and certain medical facilities. Each has its own exemption rules and documentation requirements. If you are a business owner and a customer claims an exemption, ask for proof — a resale certificate, a tax-exempt organization letter, or other documentation — before you skip the tax. If you do not collect tax when you should have, you are responsible for paying it to the state yourself.
Frequently Asked Questions
Do I have to pay sales tax on clothes in New York?
Clothing and footwear under $110 per item are exempt from sales tax. Items over $110 are taxed. A pair of jeans for $80 is not taxed. A winter coat for $150 is taxed on the full amount. If you buy multiple items, each item is evaluated separately at its individual price.
What is the difference between sales tax and use tax?
Sales tax is collected by the seller when you buy something in New York. Use tax is a tax you owe on items you buy from out-of-state sellers who do not collect New York sales tax. The rate is the same. Most individual buyers do not pay use tax, but businesses that make tax-exempt purchases from out-of-state sellers should track them.
Can I get a refund of sales tax I already paid?
No. Sales tax is final once you pay it. You cannot get a refund by returning the item to another state or by claiming you did not know you owed it. If a seller charged you tax on an exempt item by mistake, you can ask the seller for a refund, but the state will not refund it directly to you.
Do I need a sales tax ID if I sell things online as a side business?
Yes. If you sell taxable goods or services in New York, even part-time or online, you must register for a sales tax ID before you start. This includes selling through platforms like eBay, Etsy, or Facebook Marketplace. Failure to register can result in penalties and back taxes owed.
What happens if I do not file sales tax returns on time?
The New York Department of Taxation and Finance charges penalties for late filing and late payment. Penalties start at 5 percent of the tax owed and can increase. If you cannot file on time, contact the department to request an extension or set up a payment plan before the important date passes.