New York City's combined sales tax rate is 8.875 percent

New York City charges 8.875 percent sales tax on most purchases. This rate is the sum of three separate taxes: 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 has been the same since 2010.

The 8.875 percent applies to tangible goods — items you can touch and take home. Clothing under $110 per item is exempt, and groceries are not taxed. Services like haircuts, repairs, and professional fees are generally not subject to sales tax in New York City, though there are exceptions.

If you buy something in New York City and take it to another state, you pay the New York City rate at the register. If you buy something in another state and bring it to New York City, you do not pay sales tax again — you already paid it where you bought it.

Key Takeaways

  • New York City sales tax is 8.875 percent on most goods, made up of state, city, and transit taxes combined.
  • Clothing items under $110 per item and groceries are not subject to sales tax in New York City.
  • Services like haircuts, repairs, and professional services are generally not taxed, with some exceptions.
  • The rate applies to the purchase price before tax, so a $100 item costs $108.88 after tax.
  • Restaurants and prepared food are taxed, but unprepared groceries from a supermarket are not.

What items are taxed and what items are not

Sales tax in New York City applies to most physical goods you buy in a store or online for delivery to a New York City address. Electronics, furniture, books, toys, and household items all carry the full 8.875 percent tax. Clothing and footwear are taxed unless the item costs less than $110 — if a shirt is $109.99, no tax; if it is $110 or more, tax applies to the full price.

Groceries sold in a supermarket or food store are not taxed. This includes milk, bread, vegetables, meat, canned goods, and frozen foods. However, prepared food — anything ready to eat — is taxed. A sandwich from a deli counter, a rotisserie chicken, or food from a restaurant all carry sales tax. The line is whether the food requires further preparation at home.

Services are generally not taxed. A haircut, a car repair, a plumber's visit, or an accountant's fee do not have sales tax added. However, if you buy a product as part of a service — such as paint that a contractor applies to your wall — the product portion may be taxed depending on how the invoice is written.

How sales tax is calculated on your receipt

Sales tax is calculated on the subtotal of taxable items only. If you buy a $50 shirt (taxable), a $20 book (taxable), and a $10 loaf of bread (not taxable), the tax is 8.875 percent of $70, which is $6.21. Your total is $86.21.

The tax is rounded to the nearest cent on each transaction. If the tax calculates to $6.214, it rounds down to $6.21. If it calculates to $6.215, it rounds up to $6.22. This rounding happens at the register, not on each item.

Online purchases delivered to a New York City address are subject to the same 8.875 percent rate. The retailer collects the tax at checkout and sends it to New York State and New York City. If you order from out of state and the retailer does not collect tax, you are technically responsible for reporting and paying the tax yourself on your state tax return — though this is rarely enforced for individual purchases.

Clothing and footwear exemptions

Clothing and footwear under $110 per item are not taxed in New York City. This applies to shirts, pants, dresses, coats, shoes, socks, hats, gloves, and belts. The $110 threshold is per item, not per purchase — you could buy ten $109 shirts and pay no tax on any of them.

Once an item reaches $110 or more, the entire price is taxed. A $150 coat is taxed on the full $150, not just the amount over $110. Items that are considered clothing accessories — like scarves, ties, and handbags — are also exempt if under $110.

Athletic and protective gear can be more complicated. A pair of sneakers under $110 is exempt. A pair of work boots under $110 is exempt. However, items like sports equipment (a baseball glove, a tennis racket) are taxed even if under $110, because they are not considered clothing.

Restaurant and prepared food tax

Any food prepared for immediate consumption is taxed at 8.875 percent. This includes restaurant meals, takeout from a deli, food from a food truck, and items from a prepared foods section of a supermarket. A sandwich made at the deli counter, a rotisserie chicken, a slice of pizza, and a salad from a salad bar are all taxed.

The tax applies whether you eat in the restaurant or take the food out. A $20 meal at a sit-down restaurant and a $20 takeout meal are both taxed the same way. Some restaurants add the tax to your bill; others include it in the menu price. Either way, the tax is owed.

Groceries you prepare at home are not taxed. Raw chicken, uncooked pasta, fresh vegetables, and ingredients you buy to cook with carry no sales tax. The distinction is preparation: if the store or restaurant prepared it for you to eat now, it is taxed. If you are buying ingredients to prepare yourself, it is not.

Frequently Asked Questions

Do I pay sales tax on online purchases shipped to New York City?

Yes. If an online retailer ships to a New York City address, they collect 8.875 percent sales tax at checkout. Major retailers like Amazon, Walmart, and Target all collect New York City sales tax on deliveries to the city. Smaller retailers may or may not collect it, depending on their tax setup.

Is there sales tax on haircuts and salon services?

No. Haircuts, hair coloring, manicures, and other personal services are not subject to sales tax in New York City. However, if you buy a product at the salon — like shampoo or nail polish — that product is taxed separately.

What if a clothing item is exactly $110?

Items at exactly $110 are taxed. The exemption applies to items under $110, meaning $109.99 and below. Once the price reaches $110.00 or higher, the full price is subject to the 8.875 percent tax.

Do I pay sales tax on prescription medications?

No. Prescription medications are not subject to sales tax in New York. Over-the-counter medications like pain relievers and cold medicine are also not taxed. However, other items sold in a pharmacy — like vitamins, shampoo, or greeting cards — are taxed.

Is there sales tax on gym memberships or fitness classes?

No. Memberships and class fees for gyms, yoga studios, and fitness centers are not subject to sales tax. These are considered services, not taxable goods. However, if you buy fitness equipment or clothing at the gym, those items are taxed.