New York City sales tax is 8.875 percent

The combined sales tax rate in New York City is 8.875 percent. This rate is the sum of the New York State sales tax (4 percent), the Metropolitan Commuter Transportation District tax (0.375 percent), and the New York City sales tax (4.5 percent). The rate applies to most goods and some services you buy within the five boroughs.

The 8.875 percent rate has been in place since 2010. It applies uniformly across Manhattan, Brooklyn, Queens, the Bronx, and Staten Island. If you buy something outside New York City but within New York State, the rate will be lower — typically 4 to 4.875 percent depending on the county.

Key Takeaways

  • New York City sales tax is 8.875 percent on most goods, made up of state, city, and transportation district taxes combined.
  • Clothing and footwear under $110 per item are not subject to sales tax in New York.
  • Groceries, prescription medications, and most prepared foods are either tax-free or taxed at a lower rate.
  • The tax applies at the point of sale, and the seller is responsible for collecting and remitting it to the state.

What is and is not taxed in New York City

Most physical goods are taxed at 8.875 percent. Clothing and footwear are an exception: items under $110 per piece are tax-free, but anything $110 or above is taxed. A pair of shoes priced at $109.99 has no tax; a pair at $110 or more does.

Groceries sold for home consumption are not taxed. This includes bread, milk, vegetables, meat, and canned goods. However, prepared foods — sandwiches, hot pizza, rotisserie chicken, food from a salad bar — are taxed. The distinction is whether you eat it there or take it home to prepare further.

Prescription medications are not taxed. Over-the-counter drugs like aspirin or cold medicine are taxed. Medical equipment such as wheelchairs, canes, and diabetic testing supplies are not taxed if prescribed by a doctor.

Services are generally not taxed in New York, with narrow exceptions. Haircuts, dental work, and car repairs are not taxed. Telecommunications services (phone, internet, cable) are taxed. Parking garage fees are taxed, but parking meters are not.

How sales tax is collected and who pays it

The seller collects sales tax at the register and adds it to your bill. You pay the total amount, which includes the 8.875 percent tax. The seller then remits the collected tax to New York State, which distributes portions to the city and the transportation district.

You cannot avoid sales tax by paying cash instead of a card, or by shopping online if the seller has a physical location in New York. If you order from an out-of-state retailer that has no New York presence, you may not see tax added at checkout — but New York State considers this a use tax owed by you, not the seller. In practice, most people do not pay use tax on personal purchases.

Sales tax on online and mail orders

Large online retailers like Amazon, Walmart, and Target collect and remit New York sales tax on orders shipped to a New York address. This has been the case since 2019. The 8.875 percent rate applies to taxable items, just as it would in a physical store.

Smaller online sellers may not collect New York tax. If tax is not collected at checkout, the purchase is technically subject to New York use tax, which you would owe when you file your state income tax return. Most individuals do not report these purchases, and the state does not actively pursue collection from consumers.

Sales tax on services and digital goods

Most services are not taxed in New York. Haircuts, plumbing, legal advice, and medical care have no sales tax. However, certain services are taxed: telecommunications (phone, internet, cable), parking garage fees, and hotel rooms all carry the 8.875 percent rate.

Digital goods — ebooks, music downloads, software, and streaming subscriptions — are taxed in New York. If you buy an ebook or download a song, you pay 8.875 percent tax. Streaming services like Netflix and Spotify are also taxed.

Sales tax on restaurant meals and takeout

Restaurant meals are taxed at 8.875 percent, whether you eat in or take out. A sandwich from a deli counter is taxed. A slice of pizza from a pizza shop is taxed. A salad from a salad bar is taxed. The rule is that prepared food — food ready to eat without further preparation — is taxable.

Groceries you buy to cook at home are not taxed. A loaf of bread from a supermarket has no tax. A rotisserie chicken from a supermarket deli counter is taxed because it is prepared and ready to eat. The distinction can be confusing, but the key is whether the food is prepared for immediate consumption.

How to verify the tax on your receipt

Your receipt should show the subtotal, the tax amount, and the total. You can verify the math by multiplying the subtotal by 0.08875. For example, a $100 purchase should have $8.88 in tax (rounded), for a total of $108.88.

If you believe you were overcharged, check the receipt first. Some items may have been taxed when they should not have been — for instance, if clothing under $110 was taxed. If you spot an error, bring it to the cashier or manager immediately. For online orders, contact the retailer's customer service.

Frequently Asked Questions

Is sales tax included in the price shown in stores?

No. Prices shown in stores and online are before tax. The 8.875 percent tax is added at checkout. This is why a $10 item costs $10.89 after tax.

Do I pay sales tax if I buy something online from outside New York?

If the seller has a physical or economic presence in New York, they must collect tax. If they do not, tax is not collected at checkout. You technically owe use tax, but most consumers do not report it.

Is there a sales tax on groceries?

No. Groceries for home consumption — produce, meat, dairy, bread, canned goods — are not taxed. Prepared foods like deli sandwiches and hot pizza are taxed.

What clothing is not taxed?

Clothing and footwear under $110 per item are not taxed. Items $110 or above are taxed. Accessories like belts, hats, and gloves are taxed regardless of price.

Are prescription medications taxed?

No. Prescription drugs are not taxed. Over-the-counter medications like aspirin and cold medicine are taxed as regular goods.