New York's statewide sales tax is 4 percent, but your actual rate depends on your county
New York State charges a base sales tax of 4 percent on most goods and services. However, counties and cities can add their own tax on top of that. Your total rate is the state rate plus your local rate combined. This means the rate you pay in New York City (8.875 percent) is different from the rate in Buffalo (8 percent) or rural counties (as low as 7 percent).
The rate that applies to you is determined by where the sale happens, not where you live. If you buy something in Manhattan, you pay Manhattan's rate. If you buy the same thing in Westchester County, you pay Westchester's rate. Online purchases are taxed based on the seller's location or, in some cases, the buyer's address — the rule depends on the seller's setup.
Key Takeaways
- New York State's base sales tax is 4 percent, but counties add 3 to 4.875 percent on top, making your total rate between 7 and 8.875 percent depending on location.
- Food bought at grocery stores is not taxed, but prepared food, candy, and soda are taxed at the full rate.
- Clothing and footwear under $110 per item are exempt from sales tax; items over that threshold are taxed.
- Services like haircuts, repairs, and professional fees are generally not taxed, but some services tied to goods (like installation) may be.
Sales tax rates by county and major cities
New York City has the highest combined rate at 8.875 percent (4 percent state plus 4.875 percent city and county). Westchester County is 8.875 percent. Most other counties fall between 7 and 8.5 percent. Some rural counties in upstate New York have rates as low as 7 percent.
The rate can vary even within a county. Some cities or special districts add an extra fraction of a percent. If you need the exact rate for a specific address, the New York State Department of Taxation and Finance publishes a searchable database on its website where you can enter a zip code or address.
What is and is not taxed in New York
Groceries are not taxed. This includes bread, milk, eggs, vegetables, meat, and other food you cook at home. Prepared food — sandwiches from a deli, hot pizza, restaurant meals — is taxed at the full rate. Candy and soda are also taxed, even if you buy them at a grocery store.
Clothing and footwear under $110 per item are exempt. A shirt that costs $80 is not taxed. A coat that costs $150 is taxed on the full amount. The $110 threshold applies per item, not per purchase. Accessories like hats, belts, and gloves are taxed regardless of price.
Most services are not taxed. Haircuts, medical visits, car repairs, plumbing, and legal advice are not subject to sales tax. However, if a service includes a taxable product — for example, a salon that sells you shampoo along with a haircut — the shampoo is taxed but the haircut is not.
Installation and labor tied to goods may be taxed. If you buy a refrigerator and pay for delivery and installation, the installation charge is usually taxed. The rule depends on whether the labor is considered part of the sale of the good or a separate service.
How sales tax is calculated at checkout
Sales tax is calculated on the subtotal of taxable items only. If you buy a $50 shirt (taxable), a $20 book (not taxed in New York), and a $10 sandwich (taxed), the tax is applied only to the $60 in taxable items. The math is straightforward: $60 × your local rate = tax owed.
At a physical store, the register calculates this automatically. Online, the tax should appear in your cart before you complete the purchase. If you are buying from an out-of-state seller who does not collect New York tax, you may owe use tax on that purchase when you file your state income tax return — though most individual consumers do not report this.
Tax-free shopping week in New York
New York holds a sales tax holiday once a year, usually in early September, lasting about a week. During this period, most clothing and footwear under $110 are sold without sales tax. The exact dates change year to year, and the state announces them in advance on the Department of Taxation and Finance website.
Other items — electronics, school supplies, and general merchandise — are not included in the tax-free week. Only clothing and footwear may have access to. The holiday is meant to reduce the cost of back-to-school shopping.
Resale certificates and business purchases
If you are a business buying goods for resale, you can provide a resale certificate to avoid paying sales tax on your purchase. The tax is then collected when you sell the item to a customer. You must register with the New York State Department of Taxation and Finance and obtain a resale certificate number to use this exemption.
Resale certificates are not available to individual consumers. If you are buying something for personal use, you pay sales tax regardless of whether you plan to resell it later.
Frequently Asked Questions
Do I pay sales tax on online purchases from New York sellers?
Yes. If the seller has a physical presence in New York or meets certain sales thresholds, they must collect and remit New York sales tax based on your delivery address. Most major online retailers now collect tax on New York purchases.
What if I buy something online from out of state and it ships to New York?
If the seller does not collect New York sales tax, you technically owe use tax on the purchase. However, this is rarely enforced for individual consumers. The tax would be reported on your state income tax return if you choose to pay it.
Are prescription medications taxed in New York?
No. Prescription drugs are exempt from sales tax. Over-the-counter medications like aspirin or cold medicine are also not taxed. However, vitamins and supplements are taxed unless they are prescribed by a doctor.
Is there sales tax on haircuts or salon services?
No. Haircuts, coloring, and styling services are not taxed. If you buy a product at the salon — shampoo, conditioner, or styling products — that product is taxed, but the service itself is not.
Can I return an item and get the sales tax back?
When you return an item for a refund, the sales tax is refunded along with the purchase price. If you exchange an item for a different one, tax is recalculated based on the new item's price and your location at the time of exchange.