New York sales tax is a tax on most goods and some services that you pay at the point of sale

When you buy something in New York, the seller adds sales tax to your bill. The state collects this tax and distributes it to state and local governments. The total rate you pay depends on where you are in New York — the state sets a base rate, but counties and cities can add their own local taxes on top of it.

As of 2024, New York State's base sales tax rate is 4 percent. Most counties add between 3 and 4.75 percent on top of that, bringing your total to somewhere between 7 and 8.875 percent depending on your location. New York City, for example, has a combined rate of 8.875 percent. Some counties charge less — Allegany County is 7 percent total.

You do not pay sales tax on everything. Groceries, prescription medications, and most clothing under $110 are exempt. Prepared food, restaurant meals, and non-prescription items are taxed. Services like haircuts, repairs, and professional fees are generally not taxed, though there are exceptions.

Key Takeaways

  • New York State charges 4 percent sales tax, but your actual rate is higher because your county and city add their own taxes, typically bringing the total to 7 to 8.875 percent.
  • Groceries and prescription drugs are not taxed, but prepared food, restaurant meals, and most other goods are taxed at the full rate.
  • Clothing items under $110 per item are exempt from sales tax, but items over that threshold are taxed.
  • The rate you pay depends on the location where you make the purchase, not where you live, so buying in different counties can result in different totals.

Where the sales tax rate changes by county and city

New York does not have one statewide sales tax rate. The state sets 4 percent, but then each county government adds a county tax, and some cities add a city tax on top of that. This means the rate changes as you move across the state.

New York City combines the state rate with a 4.5 percent city tax and a 0.375 percent metropolitan transportation tax for a total of 8.875 percent. Westchester County outside the city is 8.875 percent as well. Buffalo and Erie County are 8 percent. Some rural counties in upstate New York are as low as 7 percent.

The rate that applies is the one where the sale happens, not where you live. If you live in a county with 7 percent tax but drive to a neighboring county with 8 percent and make a purchase there, you pay 8 percent. Online purchases are more complicated — the seller's location and the type of item determine the rate, and New York requires out-of-state sellers to collect tax on orders shipped to New York addresses.

What is and is not taxed in New York

Groceries and food you prepare at home are not taxed. This includes bread, milk, vegetables, meat, frozen foods, and other items you buy at a supermarket to cook yourself. However, the moment that food is prepared or ready to eat, it becomes taxable. A rotisserie chicken from the grocery store deli counter is taxed. A sandwich from a restaurant is taxed. A hot pizza is taxed. A cold pizza slice from a vending machine is also taxed.

Clothing under $110 per item is exempt. A $100 shirt is not taxed. A $150 jacket is taxed. Shoes, hats, and accessories follow the same rule — if the item costs under $110, it is exempt; if it costs $110 or more, the entire purchase is taxed. This applies to new clothing only, not used clothing sold secondhand.

Prescription medications are not taxed. Over-the-counter medications, vitamins, and health supplements are taxed. Medical equipment like wheelchairs and hearing aids is not taxed if you have a prescription or medical documentation. Hygiene products like soap, shampoo, and toothpaste are taxed.

Services are generally not taxed unless they are specifically listed as taxable. A haircut is not taxed. A plumber's labor is not taxed. However, if you buy a product as part of that service — like a haircut plus a bottle of shampoo — the shampoo is taxed but the haircut is not. Repair services on tangible goods are not taxed, but the parts you buy are.

How sales tax is collected and who pays it

The seller collects sales tax from you at the register or checkout. The seller then sends that tax to New York State, which distributes it to the state treasury and to the local governments that imposed it. You do not send the tax directly to the government — the business handles that responsibility.

If a seller fails to collect or remit sales tax, the state can pursue the seller for back taxes and penalties. In rare cases where a seller does not collect tax and cannot be found, the state does not pursue the customer. Your responsibility is to pay what the seller charges at the register.

Some businesses are registered with New York as tax-exempt organizations — nonprofits, schools, and government agencies. These organizations do not pay sales tax on purchases they make for their operations. If you are shopping as an individual, you pay the full rate regardless of your income or status.

Sales tax on online and mail orders

Online retailers must collect New York sales tax on orders shipped to New York addresses. This applies whether the seller is based in New York or out of state. The rate charged is based on the delivery address, not the seller's location. If you order something online to be delivered to your home in Buffalo, you pay Buffalo's 8 percent rate.

Some smaller online sellers may not collect tax, particularly if they are based outside New York and do not have a physical presence in the state. If you receive an order without tax collected, you are technically responsible for reporting and paying that tax yourself through your state income tax return, though this is rarely enforced for individual purchases. Large retailers like Amazon, Walmart, and Target all collect New York sales tax on orders shipped to New York.

Mail orders and phone orders follow the same rule as online orders — tax is collected based on the delivery address in New York. If you order by mail from a catalog and have it shipped to a New York address, the seller should charge you New York sales tax.

Sales tax on vehicles and large purchases

Vehicle purchases are subject to sales tax in New York. When you buy a car, truck, or motorcycle, you pay sales tax on the purchase price. The rate is the same as the general sales tax rate in your county. If you buy a $25,000 car in New York City, you pay $2,218.75 in sales tax (8.875 percent). You pay this tax when you register the vehicle with the Department of Motor Vehicles, not at the dealership.

If you trade in a vehicle, the sales tax is calculated on the net amount — the sale price minus the trade-in value. If you buy a $25,000 car and trade in a vehicle worth $5,000, you pay sales tax on $20,000, not $25,000.

Vehicles purchased out of state and brought into New York are subject to New York sales tax if you register them here. You cannot avoid New York tax by buying a car in New Jersey or Pennsylvania and registering it in New York.

Frequently Asked Questions

Do I pay sales tax on groceries in New York?

No. Groceries you buy to prepare at home — bread, milk, vegetables, meat, frozen dinners, and similar items — are not taxed. However, prepared foods like rotisserie chicken, deli sandwiches, and restaurant meals are taxed at the full rate.

What is the sales tax rate in my county?

The rate depends on your specific county and city. New York State's base is 4 percent, but counties add 3 to 4.75 percent on top of that. New York City is 8.875 percent; Buffalo is 8 percent; Rochester is 8 percent. Check the New York Department of Taxation and Finance website or call your county assessor's office for your exact rate.

Do I have to pay sales tax on clothing?

Clothing under $110 per item is exempt from sales tax. A $100 pair of jeans is not taxed. A $150 jacket is taxed on the full amount. The $110 threshold applies to each individual item, not your total purchase.

Do online retailers charge New York sales tax?

Yes. Major online retailers collect New York sales tax on orders shipped to New York addresses. The rate charged is based on your delivery address. Some very small sellers may not collect tax, but you are responsible for reporting that tax on your state return if it is not collected.

Is sales tax added to the price shown online?

Not always. Some websites show the price before tax and add it at checkout. Others show the final price including tax. Check the website's checkout page to see whether tax is included or will be added. The final amount you pay will include the full sales tax rate for your delivery address.