Yes, New York City has sales tax, and it is among the highest in the country

New York City charges a combined sales tax of 8.875% on most purchases. This rate is made up of three layers: the New York State sales tax (4%), the Metropolitan Commuter Transportation District tax (0.375%), and the New York City sales tax (4.5%). The total varies slightly outside the city—upstate New York is typically 4% to 4.75%—but within the five boroughs, you will see 8.875% added to your receipt.

The tax applies to most goods you buy in stores, online orders shipped to a New York City address, and many services. Food you eat at a restaurant is taxed. Groceries you buy at a supermarket are not. Clothing under $110 is exempt, but a $150 coat is taxed. Understanding which items are taxed and which are not can help you budget more accurately and avoid surprises at checkout.

Key Takeaways

  • New York City's combined sales tax rate is 8.875%, split between state, city, and transportation district taxes.
  • Unprepared groceries, prescription medications, and clothing under $110 are exempt from sales tax in New York City.
  • Restaurant meals, prepared foods, and most services are subject to the full 8.875% sales tax.
  • Online purchases shipped to a New York City address are taxed at the same rate as in-store purchases.

What items are taxed and what are not

The New York City sales tax applies to most tangible goods, but there are important exceptions. Unprepared food—items you buy at a grocery store to cook at home—is not taxed. This includes raw vegetables, meat, dairy, bread, and canned goods. The moment that food is prepared or heated for when ready consumption, the tax applies. A rotisserie chicken at the supermarket is taxed. A head of lettuce is not.

Clothing and footwear under $110 per item are exempt from sales tax. A $100 pair of shoes: no tax. A $120 pair: taxed. Accessories like belts, hats, and gloves are also exempt if they cost less than $110. Once an item exceeds that threshold, the entire purchase is taxed, not just the amount over $110.

Prescription medications are not taxed in New York City. Over-the-counter medications like pain relievers, cold medicine, and vitamins are taxed. Medical equipment such as wheelchairs and crutches is also exempt, but only if prescribed by a doctor.

Services are generally taxed. Haircuts, dry cleaning, car repairs, and plumbing work all carry the 8.875% tax. Certain services are exempt—legal services, medical services, and dental services do not have sales tax added—but most everyday services you pay for do.

How online purchases are taxed

If you order something online and have it shipped to a New York City address, you pay the full 8.875% sales tax. This applies whether you order from a New York-based retailer or an out-of-state company. The retailer is responsible for collecting and remitting the tax to New York State.

Some older online retailers may not have collected sales tax on orders to New York in the past, but this changed after a 2018 Supreme Court ruling. Today, nearly all major retailers collect New York sales tax on orders shipped to the city. If you notice a retailer is not charging tax on a New York City delivery address, that is unusual and worth double-checking before completing your purchase.

Restaurant meals and prepared foods

Eating out in New York City means paying sales tax on your meal. The 8.875% tax applies to the food itself, not the tip. A $20 entrée becomes $21.78 after tax. Delivery orders from restaurants are also taxed at the same rate, whether you order through the restaurant's website, a delivery app, or by phone.

The tax applies to all prepared foods, including takeout from delis, pizza shops, and fast-casual restaurants. If you buy a sandwich at a deli counter, it is taxed. If you buy the same ingredients separately at the grocery store to make a sandwich at home, they are not. The distinction is whether the food is ready to eat when you purchase it.

Sales tax on services and repairs

Most services you pay for in New York City are subject to sales tax. A plumber's labor, an electrician's visit, a car repair, a haircut, and dry cleaning all include the 8.875% tax. The tax applies to the total bill, including parts and labor.

Some services are exempt. If you hire a lawyer, accountant, or doctor, no sales tax is added. Dental work is also exempt. But if you hire a handyman to fix something in your home, that labor is taxed. The line between a professional service (exempt) and a trade service (taxed) can be confusing, so it is worth asking before you commit to a job.

How sales tax appears on your receipt

On a store receipt, the sales tax is listed as a separate line item before your total. You will see the subtotal, then the tax amount, then the final total you owe. Some receipts break down the tax by component—showing the state portion, city portion, and MTA portion separately—but most just show one combined tax line labeled "Tax" or "Sales Tax."

Online receipts work the same way. When you check out, the site shows you the subtotal, then adds the 8.875% tax before showing your final charge. If you are ordering from outside New York City to a New York address, the tax should appear at checkout. If it does not, contact the retailer before completing your order.

Frequently Asked Questions

Is clothing always tax-free in New York City?

Clothing under $110 per item is tax-free. A $100 shirt is not taxed; a $120 shirt is. Accessories like belts, scarves, and hats follow the same rule. Once an item costs $110 or more, the entire purchase is taxed.

Do I pay sales tax on groceries?

Unprepared groceries are not taxed. Raw vegetables, meat, dairy, bread, and canned goods have no sales tax. Prepared foods—rotisserie chicken, deli sandwiches, hot soup—are taxed at 8.875%.

What is the MTA tax and why is it part of my sales tax?

The Metropolitan Commuter Transportation District tax is 0.375% of the 8.875% total. It funds the subway, buses, and commuter rail in the New York City area. It is automatically included in every sale you make in the city.

Do I pay sales tax on prescription medications?

Prescription medications are not taxed. Over-the-counter medications like aspirin, cold medicine, and vitamins are taxed at 8.875%.

Is sales tax added to restaurant tips?

No. Sales tax applies only to the food and drink you order, not to the tip you leave. A $50 meal with 8.875% tax becomes $54.44; any tip you add is separate.