New York sales tax is a tax added to the price of most goods and some services when you buy them

When you buy something in New York, the store adds sales tax to your bill at checkout. The tax rate depends on where you are in the state. New York has a base state sales tax of 4 percent, but most counties add their own tax on top of that. In New York City, for example, the total is 8.875 percent. In other parts of the state, the combined rate ranges from 7 percent to 8.875 percent depending on the county.

The store collects this tax from you and sends it to New York State and the county where the sale happened. You do not send in sales tax yourself — it is built into the price you pay at the register or online.

Key Takeaways

  • New York State charges 4 percent sales tax, and most counties add between 3 and 4.875 percent more, making the total range from 7 to 8.875 percent depending on location.
  • Sales tax applies to most physical goods like clothing, food, and electronics, but not to groceries, prescription medications, or most services.
  • The tax rate you pay is determined by where the sale happens, not where you live, so buying in different counties can result in different totals.
  • Online purchases from New York sellers are subject to sales tax; purchases from out-of-state sellers may or may not be taxed depending on whether that seller has a physical presence in New York.

What items are taxed and what are not

Most physical goods are subject to sales tax in New York. This includes clothing, electronics, furniture, toys, and household items. However, some categories are exempt. Groceries — unprepared food you buy at the store to cook at home — are not taxed. Prescription medications are also exempt. Over-the-counter medicines and vitamins are taxed.

Services are generally not taxed in New York, with some exceptions. A haircut, car repair, or plumbing service is not subject to sales tax. However, certain services like hotel rooms, parking, and prepared food (restaurant meals, takeout, and delivery) are taxed. The rule is not always obvious, so if you are unsure whether something will be taxed, ask the seller before you buy.

How sales tax rates vary by county

New York State sets the base rate at 4 percent, but each county can add its own local tax. This creates different totals across the state. New York City (which includes Manhattan, Brooklyn, Queens, the Bronx, and Staten Island) has the highest combined rate at 8.875 percent. Westchester County is 8.875 percent. Some rural counties have lower rates — for example, parts of upstate New York have rates as low as 7 percent.

The rate that applies is the one where the sale takes place, not where you live. If you live in a county with 7 percent tax but drive to a neighboring county with 8 percent tax to make a purchase, you pay 8 percent. This matters most for large purchases or if you live near a county border.

Sales tax on online purchases

If you buy something online from a seller based in New York, sales tax is added to your order. The rate depends on the delivery address — the tax is based on where the item is being shipped, not where the seller is located.

If you buy from an out-of-state seller, whether sales tax is charged depends on whether that seller has a physical presence in New York (called "nexus"). Large national retailers like Amazon, Walmart, and Target have warehouses or offices in New York, so they charge New York sales tax on orders shipped to New York addresses. Smaller out-of-state sellers may not charge it. You are responsible for paying use tax on untaxed out-of-state purchases, though most individual buyers do not report this on their taxes.

When sales tax does not apply

Certain purchases are completely exempt from sales tax in New York. These include groceries, prescription drugs, medical equipment prescribed by a doctor, and most services. Clothing and footwear under $110 are also exempt — this is called the "clothing exemption." If you buy a $150 coat, the full price is taxed. If you buy a $100 pair of shoes, no tax is charged. Items over $110 are taxed on the full amount, not just the portion above $110.

Resale items are not taxed if the seller has a resale certificate. This applies to businesses buying goods to resell, not to individual consumers selling used items. If you sell a used item to another person, no sales tax is involved.

How to find the sales tax rate for your area

The New York Department of Taxation and Finance maintains a list of all county and local sales tax rates. You can search by county or ZIP code on their website to find the exact rate that applies where you live or where you plan to make a purchase. Rates can change, so checking the official source is more reliable than relying on memory.

Most stores display the sales tax rate at checkout or on their receipts. If you are buying online, the rate is shown before you complete your purchase. If you see a rate that seems wrong for your location, contact the seller — they may have your address on file incorrectly.

Frequently Asked Questions

Why is the sales tax rate different in different counties?

New York State sets a base rate of 4 percent, but counties and cities can add their own local taxes to fund schools, roads, and services. Each county decides its own rate, which is why you see different totals across the state. This is legal under New York law.

Do I pay sales tax on groceries?

No. Unprepared food you buy at a grocery store — bread, milk, vegetables, meat — is not taxed. However, prepared food like deli sandwiches, hot pizza, or restaurant meals is taxed. The line between "prepared" and "unprepared" can be unclear; when in doubt, ask the cashier.

What is the clothing exemption?

Clothing and footwear under $110 per item are not taxed in New York. A $100 shirt is tax-free. A $150 coat is fully taxed. Accessories like hats, belts, and bags are taxed regardless of price. The exemption applies to the individual item, not your total purchase.

Do I owe sales tax on items I bought out of state and brought to New York?

Technically, you owe "use tax" on untaxed out-of-state purchases if you bring them into New York. In practice, individual consumers rarely report this. The tax is meant to prevent people from avoiding sales tax by shopping across state lines. If you buy a large item out of state, check whether the seller charged New York tax anyway.

Why was I charged sales tax on an online order when the seller is out of state?

Large retailers have offices, warehouses, or distribution centers in New York, which means they are required to charge sales tax on orders shipped to New York addresses. Smaller sellers without a physical presence in New York may not charge it. The rule is based on where the seller operates, not where they are incorporated.