New York Sales Tax Rate and What It Covers

New York State charges a sales tax of 4 percent on most goods and services you buy. Your city or county adds its own tax on top of that, so your total rate depends on where you live. In New York City, for example, the combined rate is 8.875 percent. In Buffalo it is 8 percent. In smaller towns it may be lower or higher.

The tax applies when you buy physical items — clothing, groceries, electronics, furniture — and also when you pay for certain services like haircuts, dry cleaning, and repairs. You pay it at the register or it gets added to your bill. The seller collects it and sends it to the state and local government.

Some things are not taxed. Unprepared food you buy to cook at home — raw vegetables, meat, bread, milk — has no sales tax. Prescription medications have no tax. Clothing and footwear under $110 per item have no tax. Medical equipment prescribed by a doctor has no tax. The rules can be specific, so if you are unsure whether something is taxed, ask the cashier or check the receipt.

Key Takeaways

  • New York State charges 4 percent sales tax, and your city or county adds more, so your total rate ranges from about 7 percent to 8.875 percent depending on where you live.
  • Sales tax applies to most goods and many services, but not to unprepared food, prescription drugs, or clothing under $110.
  • The seller collects the tax at the point of sale and remits it to the state and local tax authority.
  • Online purchases from out-of-state sellers may or may not be taxed depending on whether the seller has a physical presence in New York.

Where Your Sales Tax Rate Comes From

Your total sales tax is made up of layers. The state takes 4 percent. Then your county adds a tax — this ranges from 3 percent to 4.75 percent depending on the county. Some cities add an additional local tax on top of that. New York City adds 0.375 percent on top of the state and county rates, which is why the city total reaches 8.875 percent.

You can find your exact rate by entering your address on the New York Department of Taxation and Finance website, or by asking a cashier. The rate does not change based on what you buy — it is the same whether you are buying a shirt or a sandwich (if that sandwich is prepared food, which is taxed).

What Counts as Taxable and What Does Not

The line between taxed and untaxed items is sometimes counterintuitive. Unprepared groceries — raw chicken, lettuce, apples, pasta, flour — are not taxed. But if you buy a rotisserie chicken from the grocery store deli, that is prepared food and is taxed. A sandwich from a deli counter is taxed. A loaf of bread is not.

Clothing and footwear under $110 per item are not taxed, but items over that threshold are. A $100 pair of shoes is tax-free. A $150 pair is taxed. Accessories like belts, hats, and gloves are taxed regardless of price. Clothing for animals is taxed.

Medical devices prescribed by a doctor — wheelchairs, hearing aids, diabetic testing supplies — are not taxed. Over-the-counter medicines and vitamins are taxed. Prescription medications are not taxed. Haircuts, manicures, and other personal services are taxed. Gym memberships are not taxed.

Online and Out-of-State Purchases

If you order something online from a company that has no physical location in New York, you may not see sales tax added at checkout. However, New York law requires you to pay sales tax on those purchases anyway — it is called use tax, and you owe it whether the seller collects it or not. In practice, most people do not pay use tax on small personal purchases, but the law says you should.

Large online retailers like Amazon now collect New York sales tax on most orders because they have warehouses or other operations in the state. Smaller sellers may not. If you buy from an out-of-state seller with no New York presence and no tax is charged, you are technically liable for the use tax, though enforcement is rare for individual consumers.

How Businesses Handle Sales Tax

If you own a business in New York, you must register for a sales tax permit with the Department of Taxation and Finance. You collect the tax from customers, hold it in a separate account, and send it to the state on a schedule — usually monthly or quarterly depending on your sales volume. You file a return showing how much you collected and how much you owe.

Businesses can deduct certain purchases from their taxable sales. If you buy materials to resell, you do not pay sales tax on those materials — you only collect tax when you sell the finished product. If you buy equipment for your business, you may or may not pay tax depending on what it is. A business accountant or the Department of Taxation and Finance can advise on what you can deduct.

Sales Tax on Specific Services

Services are taxed inconsistently in New York. Haircuts, manicures, and other personal grooming services are taxed. Dry cleaning and laundry services are taxed. Repair services — fixing a phone, repairing a shoe, fixing a car — are taxed. Plumbing, electrical work, and other contractor services are taxed.

But some services are not taxed. Legal services are not taxed. Medical services provided by a doctor or dentist are not taxed. Gym memberships and fitness classes are not taxed. Babysitting and nanny services are not taxed. Tutoring and educational services are not taxed. If you are unsure whether a service is taxed, ask the provider before you pay.

Frequently Asked Questions

Why is my receipt total higher than the price on the shelf?

Sales tax is added at the register, not included in the shelf price. New York law allows stores to display prices without tax included. Your total bill includes the item price plus the sales tax rate for your location. Check your receipt to see the tax amount broken out separately.

Do I pay sales tax on groceries?

Unprepared groceries — raw meat, vegetables, bread, milk, eggs — are not taxed. Prepared or ready-to-eat food is taxed. A rotisserie chicken, deli sandwich, or hot pizza is taxed. A frozen dinner is taxed. A raw chicken breast is not. When in doubt, ask the cashier before checkout.

What if I buy something out of state and bring it back to New York?

You owe New York use tax on items you buy out of state and bring home, even though you did not pay sales tax when you bought them. The tax rate is the same as the sales tax rate in your county. In practice, this is rarely enforced for personal purchases, but the law requires it.

Are online purchases always taxed?

Large online retailers now collect New York sales tax on most orders. Smaller sellers may not, especially if they have no physical presence in New York. If tax is not collected, you owe use tax on the purchase. The seller is not required to collect it, but you are required to pay it.

Can I get a sales tax refund?

New York does not offer sales tax refunds to individual shoppers. If you believe you were charged tax incorrectly, contact the store where you made the purchase. Businesses can sometimes recover overpaid sales tax by filing a claim with the Department of Taxation and Finance, but this requires documentation and proof of error.