NYC sales tax is 8.875%, made up of state and city portions combined
New York State charges 4% sales tax on most purchases. New York City adds another 4.875% on top of that, for a total of 8.875%. This combined rate applies to most goods and some services you buy within the five boroughs — Manhattan, Brooklyn, Queens, the Bronx, and Staten Island.
The tax is calculated on the sale price before you pay. When you see a price tag, that amount does not include sales tax; the tax gets added at checkout. A $100 item in NYC costs $108.88 after tax.
Sales tax rates outside New York City are lower because they do not include the city portion. If you buy the same item in upstate New York, you pay only the 4% state tax. This difference matters if you shop near city borders or order from out-of-state sellers.
Key Takeaways
- NYC sales tax is 8.875%: 4% from New York State plus 4.875% from the city.
- The tax applies to most physical goods and to certain services like haircuts, dry cleaning, and repairs.
- Groceries, prescription medications, and most clothing under $110 are exempt from sales tax in New York.
- Tax is calculated on the sale price and added at the register; it is not included in the displayed price.
- Online purchases from out-of-state sellers may not have tax added, but New York requires you to pay use tax on those items yourself.
What items are taxed and what are not
Most physical goods sold in NYC are taxed. Clothing, electronics, furniture, books, toys, and household items all have the 8.875% tax added at checkout. The main exception is clothing and footwear under $110 per item — those are tax-exempt. A $100 shirt is not taxed; a $150 coat is.
Groceries and food for home consumption are not taxed. This includes bread, milk, vegetables, meat, frozen dinners, and canned goods. Restaurant meals and prepared food are taxed, because they are considered ready-to-eat rather than groceries.
Prescription medications are exempt from sales tax. Over-the-counter drugs like aspirin or cold medicine are taxed. Medical equipment like wheelchairs or hearing aids may be exempt depending on the specific item.
Services are taxed differently than goods. A haircut, manicure, or massage is taxed. Dry cleaning and laundry services are taxed. Car repairs are taxed. However, professional services like accounting, legal advice, or medical care are generally not taxed.
How sales tax appears on your receipt
When you check out, the cashier or register shows the subtotal first, then adds the 8.875% tax as a separate line item. The final total is what you pay. On a receipt, you will see "Subtotal," then "Tax," then "Total."
For online purchases from retailers based in New York, the tax is usually added automatically before you complete the purchase. For purchases from out-of-state retailers, many do not add New York tax at checkout. New York State law requires you to track these purchases and pay "use tax" on your own, though most individuals do not.
If you are buying multiple items, tax is calculated on each taxable item separately, then added together. A $50 shirt (taxed) and a $20 loaf of bread (not taxed) would have tax applied only to the shirt.
Who collects the tax and where it goes
The store or business collects sales tax from you at the point of sale. They then send that money to New York State, which splits it between the state and the city. The city portion (4.875%) goes to the New York City Department of Finance.
Businesses are responsible for remitting the tax they collect, usually monthly or quarterly depending on their size. If a business fails to collect or remit sales tax, they can face penalties and interest.
You do not file sales tax yourself as a consumer. The business handles all reporting and payment to the government.
Sales tax on specific NYC purchases
| Item or Service | Taxed? | Notes |
|---|---|---|
| Clothing under $110 | No | Each item must be under $110 to be exempt |
| Clothing $110 and over | Yes | Full 8.875% applies |
| Groceries | No | Food for home consumption only |
| Restaurant meals | Yes | Prepared food is taxed |
| Prescription drugs | No | Over-the-counter drugs are taxed |
| Haircuts and salon services | Yes | Full 8.875% applies |
| Dry cleaning | Yes | Full 8.875% applies |
| Car repairs | Yes | Parts and labor both taxed |
Sales tax outside NYC and online purchases
If you buy something in another New York State county, you pay only the 4% state tax, not the city portion. Westchester County, for example, has a 7% combined rate. New Jersey has no sales tax on clothing and a lower rate overall.
Online purchases from out-of-state retailers often do not have New York tax added. However, New York State requires you to pay "use tax" on those purchases yourself — it is the same rate as sales tax (8.875% in NYC) and covers the same items. Most people do not report use tax, but technically it is owed.
If you order from Amazon, Walmart, or another major retailer, they usually add New York tax automatically because they have a physical presence in the state. Smaller out-of-state sellers may not.
Frequently Asked Questions
Why is NYC sales tax higher than other parts of New York?
The city adds its own 4.875% tax on top of the state's 4%. Other counties have lower local tax rates or none at all. The city uses this revenue for local services and infrastructure.
Do I pay sales tax on clothing if it is under $110?
No. Each individual clothing item under $110 is exempt. A $100 shirt is not taxed. A $150 coat is taxed on the full amount. Accessories like belts, hats, and gloves are taxed regardless of price.
Is sales tax included in the price I see on the tag?
No. The price on the tag is before tax. The 8.875% is added at checkout. A $50 item will cost $54.44 after tax in NYC.
What happens if I buy something online from a store outside New York?
If the retailer does not have a physical location in New York, they may not add tax at checkout. New York State law says you owe use tax on that purchase, but enforcement is rare for individual consumers.
Are groceries taxed if I buy them at a restaurant or deli?
It depends. Groceries you take home are not taxed. Food prepared and ready to eat — like a sandwich from a deli counter or a meal at a restaurant — is taxed. A loaf of bread from the shelf is not taxed; a sandwich made to order is.