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, every county in New York adds its own local tax on top of that, ranging from 3.5 to 4.75 percent. Your total sales tax rate is the state rate plus your county 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 like Hamilton County (7.5 percent).

The rate that applies to your purchase is determined by where the sale takes place, not where you live. If you buy something in Manhattan, you pay Manhattan's rate. If you buy the same item in Westchester County, you pay Westchester's rate. This matters when you shop near county lines or order items for delivery to a specific address.

Key Takeaways

  • New York State's base sales tax is 4 percent, and every county adds between 3.5 and 4.75 percent on top of that.
  • Your total sales tax rate depends on which county the sale occurs in, not where you live.
  • New York City has the highest combined rate at 8.875 percent; rates are lower in most other counties.
  • Groceries, prescription medications, and certain medical equipment are exempt from sales tax in New York.
  • Restaurant meals and prepared foods are taxed, but raw ingredients you buy at a grocery store are not.

County-by-county rates and where to find your local rate

New York has 62 counties, and each one sets its own local sales tax rate. The state publishes the complete list on the Department of Taxation and Finance website. New York City (which includes five counties: New York, Kings, Queens, Bronx, and Richmond) charges 8.875 percent. Westchester County charges 8.875 percent. Nassau and Suffolk counties on Long Island charge 8.875 percent. Counties in upstate New York typically charge between 7 and 8 percent.

To find your county's exact rate, search the New York Department of Taxation and Finance website for "sales tax rates by county" or call your county assessor's office. The rate can change if your county legislature votes to adjust it, though this happens infrequently. If you are buying something online for delivery to a New York address, the seller should charge the sales tax rate for the county where the item will be delivered.

What is and is not taxed in New York

Groceries are not taxed in New York, but prepared foods are. This means a loaf of bread, milk, and raw chicken you buy at a supermarket have no sales tax. A sandwich from a deli counter, a rotisserie chicken, or a hot pizza are all taxed. The rule is roughly: if you can eat it without further preparation, it is taxed. If you have to cook or prepare it, it is not.

Prescription medications are not taxed. Over-the-counter medications like aspirin or cold medicine are taxed. Medical equipment such as wheelchairs, canes, and diabetic testing supplies are not taxed if you have a prescription or doctor's order. Clothing and footwear are not taxed in New York, with the exception of items like bathing suits and athletic wear that are considered sportswear in some contexts — the rules here are narrow and specific to the item.

Services are generally not taxed in New York, with specific exceptions. Haircuts and salon services are taxed. Repairs to tangible goods (fixing a watch, repairing shoes) are taxed. Dry cleaning is taxed. Admission to movies, concerts, and sporting events is taxed. Rental of hotel rooms is taxed. Rental of cars is taxed.

How sales tax is calculated and charged

Sales tax is calculated on the sale price of the item, before any discounts or coupons are applied. If an item costs $100 and you have a $10 coupon, you pay sales tax on $90. If an item is on sale for 20 percent off, you pay sales tax on the discounted price, not the original price.

At a physical store, the cashier adds the sales tax to your total at checkout. Online retailers are required to charge New York sales tax on orders shipped to New York addresses, though enforcement varies and some smaller sellers do not. If you buy something online from out of state and no sales tax was charged, you are technically required to report that purchase and pay "use tax" to New York State when you file your income tax return — though most individuals do not do this and it is rarely enforced.

Sales tax on specific purchases: vehicles, fuel, and utilities

Vehicle purchases are taxed at the full sales tax rate of your county. If you buy a car for $25,000 in New York City, you owe $2,218.75 in sales tax (8.875 percent). Some people attempt to register a vehicle in a lower-tax county to reduce this cost, but New York taxes based on where the vehicle is registered, and the state has rules against this practice.

Gasoline and diesel fuel are not subject to sales tax in New York. However, they are subject to state and federal excise taxes, which are included in the price you see at the pump. Electricity and natural gas used in your home are not subject to sales tax. Heating oil is not subject to sales tax.

Frequently Asked Questions

What is the sales tax rate in New York City?

New York City's combined sales tax rate is 8.875 percent. This applies to all five boroughs: Manhattan, Brooklyn, Queens, the Bronx, and Staten Island. The rate is made up of the 4 percent state tax plus 4.875 percent in local taxes.

Do I pay sales tax on clothes in New York?

Clothing and footwear are not taxed in New York. This includes everyday items like shirts, pants, shoes, and coats. The exemption does not apply to accessories like hats, gloves, or belts in most cases, though the rules can be specific to the item.

Is restaurant food taxed?

Yes. Prepared food, including restaurant meals, takeout, and deli items, is subject to sales tax. Groceries you buy raw and prepare at home are not taxed. The distinction is whether the food is ready to eat or requires further preparation.

What if I buy something online from another state?

If the online retailer ships to a New York address, they are required to charge New York sales tax. If they do not, you are technically required to pay use tax when you file your state income tax return, though this is rarely enforced for individual purchases.

Are prescription drugs taxed in New York?

Prescription medications are not taxed. Over-the-counter drugs like pain relievers and cold medicine are taxed. Medical equipment prescribed by a doctor, such as wheelchairs or diabetic supplies, is also not taxed.