New York City sales tax is 8.875 percent

The combined sales tax rate in New York City is 8.875 percent. This rate applies to most retail purchases within the five boroughs: Manhattan, Brooklyn, Queens, the Bronx, and Staten Island. The 8.875 percent figure is the sum of the New York State sales tax (4 percent), the Metropolitan Transportation Authority tax (0.375 percent), and the New York City sales tax (4.5 percent).

When you buy something in a store or online and have it shipped to a New York City address, the seller will charge you this combined rate at checkout. The tax is calculated on the sale price before any discounts are applied, though some items are exempt from sales tax entirely.

Key Takeaways

  • New York City's combined sales tax rate is 8.875 percent, made up of state, city, and transit authority taxes.
  • Groceries, prescription medications, and most clothing under $110 are exempt from sales tax in New York.
  • Prepared foods, restaurant meals, and takeout are taxed at the full 8.875 percent rate.
  • Online purchases shipped to a New York City address are subject to the same 8.875 percent tax as in-store purchases.
  • The tax rate is the same across all five boroughs, so location within the city does not change what you pay.

What items are exempt from sales tax in New York City

Certain purchases are not subject to the 8.875 percent sales tax. Groceries — unprepared food items you buy at a supermarket or bodega — are tax-free. This includes bread, milk, eggs, fresh produce, frozen vegetables, and canned goods. The key distinction is that the food must be uncooked and intended to be prepared at home.

Prescription medications are also exempt from sales tax. Over-the-counter medications like aspirin, cold medicine, and vitamins are taxed, but anything you need a prescription to buy is not. Clothing and footwear under $110 per item are tax-exempt in New York State, including shoes, shirts, pants, and coats. If a single item costs $110 or more, the full purchase price is taxed.

Medical equipment such as wheelchairs, canes, and hearing aids are exempt. Newspapers and magazines are also tax-free. Items that seem like they should be exempt — such as diapers, feminine hygiene products, and baby formula — are actually taxed at the full rate in New York City.

How prepared food and restaurant meals are taxed differently

The line between taxed and tax-free food comes down to preparation. A sandwich you buy at a deli counter is prepared food and is taxed at 8.875 percent. A loaf of bread you buy from the shelf is not. Takeout from a restaurant, pizza by the slice, coffee from a café, and rotisserie chicken from a supermarket are all taxed.

Alcohol is taxed at the full rate. Beer, wine, and spirits purchased at a store or bar are subject to the 8.875 percent sales tax, plus any additional alcohol taxes that explore. Soft drinks, juice, and bottled water are also taxed.

If you eat at a table in a restaurant, the meal is taxed. If you order takeout from the same restaurant, it is also taxed. The difference between dine-in and takeout does not affect the sales tax rate in New York City — both are subject to the full 8.875 percent.

Sales tax on online purchases shipped to New York City

Online retailers are required to charge New York City sales tax on orders shipped to addresses in the city. This applies whether you shop from a large national retailer or a small online store. The 8.875 percent rate is added at checkout, just as it would be if you walked into a physical store.

Some older online retailers may not have updated their systems to charge sales tax on New York City orders, but they are legally required to do so. If you notice that a retailer did not charge tax on a purchase shipped to your New York City address, the retailer is not following the law — not that you have found a loophole.

Digital purchases — such as e-books, streaming subscriptions, and downloaded software — are generally not subject to sales tax in New York. However, digital goods bundled with physical items may be taxed depending on how the sale is structured.

How sales tax is calculated at checkout

Sales tax is calculated on the subtotal before any discounts or coupons are applied. If an item costs $100 and you have a $10 coupon, the tax is calculated on $90, not $100. However, if a store advertises a price as "after tax," that price already includes the 8.875 percent, and no additional tax is added.

The tax is rounded to the nearest cent. If the calculation results in $8.87625, the store rounds to $8.88. This rounding happens at the register, not across your entire receipt — each item is taxed individually and then rounded.

When you see a price tag in a New York City store, that price does not include sales tax. The final amount you pay at the register will be higher by 8.875 percent. Online retailers typically show the tax separately at checkout so you can see the breakdown before you complete your purchase.

Sales tax rates in surrounding areas outside New York City

If you travel just outside New York City, the sales tax rate changes. Westchester County (north of the Bronx) has a sales tax rate of 8.875 percent in some areas and 8.375 percent in others, depending on the specific municipality. Nassau County (on Long Island, east of Queens) has a rate of 8.875 percent. New Jersey, directly across the Hudson River, has a sales tax rate of 6.625 percent.

If you live in New York City but work or shop in New Jersey, you will pay less sales tax on purchases made there. However, if you buy something in New Jersey and have it shipped to your New York City address, New York City sales tax applies. The tax is based on where the item is delivered, not where it was purchased.

What happens if you do not pay sales tax

As a consumer, you are not responsible for tracking or paying sales tax yourself. The retailer collects it at the point of sale and sends it to the state and city. If a retailer fails to charge you sales tax, that is the retailer's violation, not yours.

In rare cases where you buy something from a private seller or at a flea market and no sales tax is charged, you are technically supposed to report that purchase and pay the tax yourself on your state income tax return. In practice, this almost never happens and is rarely enforced for individual consumers. The responsibility falls on the seller to collect and remit the tax.

Frequently Asked Questions

Do I pay sales tax on clothing in New York City?

Clothing and footwear under $110 per item are tax-free. A shirt that costs $50 is not taxed. A winter coat that costs $150 is taxed on the full $150. If you buy multiple items, each item is evaluated separately at its individual price.

Is coffee taxed in New York City?

Yes. Coffee prepared and sold at a café, whether hot or cold, is taxed at 8.875 percent. Whole beans or ground coffee you buy from a shelf to brew at home are not taxed because they are unprepared groceries.

What if a store charges me the wrong sales tax amount?

If you notice the tax is incorrect, ask the cashier or manager to recalculate it. Most errors are caught at the register. If you discover an error after you leave, contact the store with your receipt and they can issue a refund for the overcharge.

Do I pay sales tax on a haircut or other services?

No. Services like haircuts, dental work, repairs, and labor are not subject to sales tax in New York. You pay the service fee, but no 8.875 percent tax is added. Products you buy at the salon or barbershop — such as shampoo or hair products — are taxed.

Is the sales tax the same in all five boroughs?

Yes. Manhattan, Brooklyn, Queens, the Bronx, and Staten Island all have the same combined sales tax rate of 8.875 percent. Your location within New York City does not change the tax you pay.