New York sales tax is 4 percent statewide, plus local taxes that range from 3.5 to 4.75 percent, making your total between 7.5 and 8.75 percent depending on where you shop.
The state collects a flat 4 percent on most purchases. On top of that, your county adds its own rate, and some cities add more. A bottle of water that costs $1.00 in one neighborhood might ring up at $1.08 in another, three miles away. The difference comes down to local tax districts, not the store's choice.
What you pay depends entirely on the address where the sale happens. If you buy something in Manhattan, you pay Manhattan's rate. If you drive to a store in Westchester, you pay Westchester's rate. Online orders shipped to your address are taxed at your delivery location's rate, not where the seller is based.
Key Takeaways
- New York's state sales tax is 4 percent, and every county adds a local tax on top of that, so your total rate is never just 4 percent.
- The lowest combined rate in the state is 7.5 percent (in some parts of upstate New York), and the highest is 8.75 percent (in parts of New York City and surrounding areas).
- Your tax rate is determined by the address where you make the purchase, not where you live or where the business is located.
- Clothing and footwear under $110 per item are exempt from sales tax in New York, but the exemption applies only to the portion under $110.
Sales tax rates by county
New York has 62 counties, and each one sets its own local rate. The state publishes the combined rate for every county on the Department of Taxation and Finance website. Most counties fall between 7.5 and 8.5 percent.
New York City (which includes the five boroughs: Manhattan, Brooklyn, Queens, the Bronx, and Staten Island) charges 8.875 percent. Westchester County charges 8.875 percent. Nassau and Suffolk counties on Long Island charge 8.875 percent. Upstate counties like Allegany, Cattaraugus, and Chautauqua charge 7.5 percent. Dutchess County charges 8.5 percent. If you live or shop near a county line, it is worth checking the exact rate before a large purchase.
What is and is not taxed
Most goods and services are taxed. Groceries, prepared food, gasoline, and household items all carry sales tax. But some categories are exempt or partially exempt.
Clothing and footwear under $110 per item are not taxed. If you buy a $100 shirt, you pay no tax. If you buy a $150 shirt, you pay tax on the full $150 (not just the $40 over the limit). Accessories like belts, hats, and gloves are taxed even if they cost under $110. Prescription drugs are not taxed. Non-prescription medicines and vitamins are taxed. Newspapers and magazines are not taxed. Most services—haircuts, repairs, professional fees—are not taxed. But some services are: dry cleaning, parking, and storage are all taxed.
How local tax districts work
Counties are divided into tax districts, and some districts add their own rate on top of the county rate. This is most common in cities and towns that need extra revenue. A city might add 0.25 percent to the county rate, making the total higher in that city than in the surrounding unincorporated areas of the same county.
The Department of Taxation and Finance maintains a complete list of tax rates by district. You can search by address or ZIP code to find the exact rate that applies to a specific location. If you are buying something at a store, the register will charge the rate for that store's address. If you are ordering online, the tax will be calculated for your delivery address.
Sales tax on online and mail orders
Online retailers must charge New York sales tax on orders shipped to New York addresses. The tax is based on the delivery address, not the seller's location. A purchase shipped to Manhattan is taxed at the Manhattan rate, even if the seller is in another state.
This rule applies to most large retailers. Some smaller sellers may not collect tax, but you are responsible for reporting and paying the tax yourself on your state income tax return if the seller did not charge it. In practice, most major online retailers (Amazon, Walmart, Target, and others) collect and remit the tax automatically.
Sales tax on services and special items
Services are generally not taxed in New York, but there are exceptions. Repair services for tangible goods are not taxed. Installation services are not taxed. But dry cleaning, laundry, and storage are taxed. Parking is taxed. Telecommunications services (phone, internet, cable) are taxed. Utilities (electricity, gas, water) are not taxed.
Vehicles are taxed, but the tax is collected at the time of registration, not at the point of sale. Fuel is taxed at the pump. Cigarettes and e-cigarettes carry an additional excise tax on top of sales tax. Alcoholic beverages are taxed at the standard rate, plus an additional excise tax on beer, wine, and spirits.
Where to find the exact rate for your location
The New York Department of Taxation and Finance publishes a sales tax rate lookup tool on its website. You can enter your address or ZIP code and see the combined state and local rate that applies. The tool also shows you which tax districts are included in your area.
If you are a business owner or accountant, you can read the complete list of rates by county and district. The rates change occasionally when local governments adjust their rates, so if you are planning a major purchase or need the rate for tax purposes, check the official source rather than relying on a rate you saw months ago.
Frequently Asked Questions
Is clothing always tax-free in New York?
No. Only clothing and footwear under $110 per item are exempt. If a single item costs $110 or more, the entire purchase is taxed. Accessories like belts, scarves, and hats are taxed regardless of price.
Do I pay sales tax on groceries?
Most groceries are not taxed. Milk, bread, vegetables, and meat are all exempt. But prepared food, candy, and soda are taxed. If you are unsure whether a specific item is taxed, ask the cashier or check the receipt.
What is the sales tax rate in New York City?
New York City's combined sales tax rate is 8.875 percent. This applies to all five boroughs: Manhattan, Brooklyn, Queens, the Bronx, and Staten Island. The rate is the same whether you shop in a store or order online for delivery to a New York City address.
Do I have to pay sales tax on online orders from out-of-state sellers?
Yes, if the seller ships to a New York address, they must charge New York sales tax based on your delivery location. If they do not, you are responsible for reporting the tax on your state return, though most major retailers collect it automatically.
Are services like haircuts and repairs taxed?
Most services are not taxed. Haircuts, repairs, and professional services are exempt. But some services are taxed: dry cleaning, laundry, parking, and storage all carry sales tax.