The current sales tax rate in New York City
New York City's sales tax is 8.875%. This rate combines the New York State sales tax of 4%, the Metropolitan Transportation Authority tax of 0.375%, and the New York City sales tax of 4.5%. The 8.875% applies to most purchases you make within the five boroughs — Manhattan, Brooklyn, Queens, The Bronx, and Staten Island.
The rate has been in place since 2010 and does not change by neighborhood or by which borough you shop in. Whether you buy something in Midtown Manhattan or in a store in the Rockaways, you pay the same 8.875% tax on taxable items.
Outside New York City but still in New York State, the rate is lower. Westchester County, for example, charges 8.875% as well, but Nassau and Suffolk counties on Long Island charge 8.875% and 8%, respectively. If you are shopping near the city border, the rate depends on where the store is located, not where you live.
Key Takeaways
- New York City's sales tax rate is 8.875%, made up of state, city, and transit authority taxes combined.
- The rate applies uniformly across all five boroughs and has not changed since 2010.
- Food bought at a grocery store is not taxed, but prepared food and restaurant meals are taxed at the full 8.875%.
- Clothing and footwear under $110 per item are exempt from sales tax in New York State, including in the city.
- The tax is added at the register; the price tag you see does not include it.
What is and is not taxed in New York City
Most goods are taxed, but several categories are exempt. Groceries — items you buy at a supermarket to cook at home — are not taxed. This includes bread, milk, vegetables, meat, and canned goods. However, prepared food, hot food, and anything you eat at a restaurant or buy ready-to-eat is taxed at 8.875%.
Clothing and footwear under $110 per item are exempt from New York State sales tax, which means they are also exempt in the city. A $100 shirt is not taxed. A $150 coat is taxed. If you buy multiple items together, each item is evaluated separately at its individual price.
Prescription medications are not taxed. Over-the-counter drugs and vitamins are taxed. Diapers, feminine hygiene products, and incontinence products became exempt from New York State sales tax in 2022, so you do not pay tax on these items in the city either.
Services are generally not taxed. A haircut, dental work, or car repair does not have sales tax added. However, some services bundled with products — such as installation or delivery — may be taxed depending on how the business structures the charge.
How the tax breaks down by source
The 8.875% rate is not a single tax. It is four separate taxes stacked on top of each other. Understanding the breakdown can help you see why New York City's rate is higher than many other places.
| Tax Component | Rate | What It Funds |
|---|---|---|
| New York State Sales Tax | 4% | General state revenue |
| New York City Sales Tax | 4.5% | City services and operations |
| Metropolitan Transportation Authority Tax | 0.375% | Subway, bus, and commuter rail funding |
| Total | 8.875% |
The MTA tax was added in 2010 as a dedicated funding source for public transit. Before that, the city rate was 8.5%. The MTA portion does not go to the city general fund; it is earmarked specifically for the subway system, buses, and the Long Island Rail Road and Metro-North Railroad.
Sales tax on online and mail orders
If you order something online from a retailer and have it shipped to a New York City address, you owe sales tax at the 8.875% rate. This applies whether the retailer is based in New York or out of state. Most large online retailers now collect and remit this tax automatically.
Small retailers and marketplaces sometimes do not collect New York sales tax. If you buy from a seller who does not collect it, you are technically responsible for paying it yourself as "use tax" when you file your New York State income tax return. In practice, most individuals do not report this, but the obligation exists.
If you buy something out of state and bring it into New York City, you do not owe sales tax on it. The tax applies to purchases made for use in the city, not to items you already own.
Tax-free shopping periods in New York
New York State runs a back-to-school tax-free week each year, usually in late August. During this period, most clothing, footwear, and school supplies under certain price thresholds are sold without sales tax. The exact dates change each year, and not all items may have access to — the state publishes a detailed list before the week begins.
There is no general holiday shopping tax-free period in New York City or New York State. The back-to-school week is the only annual sales tax holiday. Some other states offer tax-free periods for hurricane preparedness or energy-efficient appliances, but New York does not.
Frequently Asked Questions
Do I pay sales tax on groceries in New York City?
No. Unprepared food you buy at a grocery store — vegetables, meat, bread, milk, canned goods — is not taxed. However, prepared food, hot food, and anything sold ready-to-eat is taxed at 8.875%. A rotisserie chicken from the supermarket is taxed; raw chicken is not.
Are clothes tax-free in New York City?
Clothing and footwear under $110 per item are exempt from sales tax in New York City. Items over $110 are taxed. Accessories like belts, hats, and gloves are also exempt if they are under $110. Each item is taxed individually based on its own price.
Why is New York City's sales tax so high?
The 8.875% rate combines state tax (4%), city tax (4.5%), and a dedicated tax for public transit (0.375%). The MTA tax was added in 2010 to fund the subway system. Other major cities have lower rates because they do not have a dedicated transit tax or have lower state and local rates.
Do I owe sales tax on things I buy online?
Yes. If you order something online and have it shipped to a New York City address, you owe sales tax at 8.875%. Most major retailers collect this automatically. Smaller sellers may not, in which case you are technically responsible for reporting it as use tax on your state return.
Is there a sales tax holiday in New York City?
New York State has a back-to-school tax-free week each August, usually lasting one week. During this period, most clothing, footwear, and school supplies under certain price limits are sold without tax. There is no other annual sales tax holiday in the city or state.