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 local sales tax on top of that. Your total rate is the state rate plus whatever your county and city have added. This means the rate you pay in New York City (8.875 percent) is different from the rate in Buffalo (8 percent) or rural areas that may be lower.
The rate that matters is the one where you make the purchase, not where you live. If you buy something in Manhattan, you pay Manhattan's rate. If you drive to a county with a lower rate and buy the same item there, you pay that lower rate instead.
Key Takeaways
- New York State's base sales tax is 4 percent, but counties add local tax on top, so your actual rate ranges from 4 percent to 8.875 percent depending on location.
- New York City has the highest combined rate at 8.875 percent because the city adds 4.5 percent to the state's 4 percent.
- Food bought at a grocery store is not taxed, but prepared food, restaurant meals, and hot takeout are taxed at the full rate.
- Clothing and footwear under $110 per item are not taxed, but items over that price are taxed on the full amount.
- You pay tax based on where you buy something, not where you live or where you use it.
County and city rates across New York
Each county sets its own local sales tax rate, which is added to the state's 4 percent. Some counties have also allowed their cities to add an additional city tax. The result is that rates vary significantly across the state.
New York City combines the state rate (4 percent) with the city rate (4.5 percent) and the Metropolitan Transportation Authority tax (0.375 percent) for a total of 8.875 percent. Westchester County is 8.875 percent. Erie County (Buffalo area) is 8 percent. Onondaga County (Syracuse area) is 8 percent. Rural counties in upstate New York may be as low as 4 percent or 4.75 percent. You can find your exact local rate by entering your address on the New York Department of Taxation and Finance website or by calling your county assessor's office.
What is and is not taxed in New York
Groceries are not taxed. This includes bread, milk, eggs, vegetables, fruit, meat, and other food you cook at home. It does not include prepared foods, hot foods, or meals you eat at a restaurant or buy ready-to-eat from a deli counter.
Clothing and footwear under $110 per item are not taxed. A shirt that costs $80 is not taxed. A coat that costs $150 is taxed on the full $150. Accessories like hats, gloves, and belts are taxed regardless of price. Shoes under $110 are not taxed; shoes over $110 are taxed on the full amount.
Prepared and restaurant food is taxed. This includes hot takeout, deli sandwiches, pizza, coffee, and anything you buy ready to eat. Cold takeout sandwiches from a grocery store are sometimes not taxed, but hot sandwiches are. When in doubt, ask the cashier whether the item is taxed.
Services are generally not taxed, with some exceptions. Haircuts, car repairs, and plumbing are not taxed. Certain services like dry cleaning, parking, and hotel rooms are taxed. Gasoline is taxed at the pump as part of the price you see.
How sales tax appears on your receipt
When you buy something, the store calculates the tax based on the item's price and your location. The tax is added to the subtotal and shown separately on your receipt. You do not pay tax on tax — the tax is calculated on the pre-tax price only.
Some stores round the total to the nearest cent. If your tax comes to $5.634, the store may round it to $5.63. This is legal in New York. Over time, rounding slightly favors the customer about half the time and the store the other half.
Sales tax on online and mail orders
New York requires most online retailers to charge sales tax on orders shipped to New York addresses, even if the retailer is based outside the state. This applies to large retailers like Amazon and most other major sellers. The tax rate charged is based on the delivery address, not the retailer's location.
Some smaller online sellers may not charge New York sales tax. If they do not, you are technically responsible for paying "use tax" to New York State on those purchases, though this is rarely enforced for individual buyers. The rate and rules are the same as sales tax.
Sales tax on vehicles and major purchases
Vehicle sales are taxed in New York, and the rate is the same as the general sales tax rate in your county. When you buy a car, the dealer calculates tax on the purchase price and adds it to your bill. If you trade in a vehicle, the tax is calculated on the net price (purchase price minus trade-in value), not the full purchase price.
Vehicles registered in New York must have sales tax paid before the title is transferred. If you buy a car out of state and bring it to New York, you may owe New York sales tax or use tax when you register it, depending on whether tax was paid in the other state.
Frequently Asked Questions
Do I pay sales tax if I buy something online and pick it up in the store?
Yes. You pay the sales tax rate of the location where you pick up the item, not where you ordered it from. If you order online from a store in Buffalo and pick it up at their New York City location, you pay New York City's 8.875 percent rate.
Is there sales tax on prescription medications?
No. Prescription medications are not taxed in New York. Over-the-counter medications like pain relievers and cold medicine are taxed at the full rate.
What if the cashier charges me the wrong tax rate?
Ask the cashier to recalculate or speak to a manager. If you believe you were overcharged, keep your receipt. You can contact the New York Department of Taxation and Finance to report it, though they typically handle business disputes rather than individual transactions.
Do I owe New York sales tax if I buy something while visiting from another state?
Yes. Sales tax is based on where you buy the item, not where you live. If you are visiting New York and make a purchase, you pay New York's sales tax rate for that location.