Yes, New York City charges sales tax on most purchases

New York City applies a sales tax of 8.875 percent to most goods and services you buy within the city. This rate is made up 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). The tax is added at the register — the price on the shelf does not include it.

The 8.875 percent rate applies to clothing, electronics, furniture, groceries at the checkout, restaurant meals, and most other items. Some purchases are taxed at lower rates or not taxed at all, depending on what you are buying and how you are buying it.

Key Takeaways

  • New York City sales tax is 8.875 percent on most purchases, added at the register.
  • Clothing and footwear under $110 per item are not taxed, but items over that threshold are.
  • Groceries sold in a supermarket are not taxed, but prepared foods and restaurant meals are.
  • Services like haircuts, dry cleaning, and repairs are taxed at the full 8.875 percent rate.
  • Online purchases from out-of-state sellers may or may not be taxed depending on the seller's location and sales volume.

What is and is not taxed in New York City

Clothing and footwear are not taxed in New York City if each item costs less than $110. A pair of jeans for $80 is tax-free. A winter coat for $150 is taxed. If you buy five items of clothing for $20 each, none of them are taxed — the $110 threshold applies per item, not to your total purchase.

Groceries sold in a supermarket or grocery store are not taxed. This includes bread, milk, vegetables, frozen foods, and canned goods. However, prepared foods — rotisserie chicken from the deli counter, a sandwich from the prepared foods section, or food from a restaurant — are taxed at 8.875 percent. The difference is whether the food is ready to eat when you buy it.

Services are taxed. A haircut, manicure, dry cleaning, shoe repair, and car wash all carry the full 8.875 percent tax. Prescription medications are not taxed, but over-the-counter medicines and vitamins are.

The $110 clothing threshold and how it works

New York State exempts clothing and footwear under $110 per item from sales tax. This is a state rule that applies everywhere in New York, including New York City. The threshold is per item, not per transaction.

If you buy a $50 shirt, a $60 pair of pants, and a $120 jacket in one transaction, you pay tax only on the jacket. The shirt and pants are under $110 each, so they are not taxed. Accessories like belts, hats, and scarves are also exempt if they cost less than $110.

Items that are not clothing — even if worn on the body — do not get this exemption. Eyeglasses, sunglasses, and watches are taxed at 8.875 percent regardless of price.

Restaurant meals and prepared foods

Any food or drink you buy ready to eat is taxed. This includes restaurant meals, takeout, food from a food cart, coffee from a café, and prepared items from a supermarket deli. The tax applies whether you eat it in the restaurant, take it home, or have it delivered.

The rule is straightforward: if the seller prepared it for you to eat, it is taxed. If you are buying raw ingredients to cook yourself, it is not. A rotisserie chicken from the supermarket deli counter is taxed. A raw chicken from the butcher counter is not.

Online purchases and out-of-state sellers

Whether you pay New York City sales tax on an online purchase depends on where the seller is located and how much they sell. Large online retailers like Amazon, Walmart, and Target collect New York sales tax on orders shipped to New York City addresses. Smaller sellers or sellers in other states may not.

If you buy from an out-of-state seller who does not collect New York tax, you are technically responsible for paying "use tax" — which is the same rate as sales tax — when you file your New York State income tax return. In practice, most individual shoppers do not report these purchases. The rule exists, but enforcement is rare for personal purchases.

Services that are always taxed

Personal services carry the full 8.875 percent tax in New York City. This includes haircuts and styling, manicures and pedicures, massage, dry cleaning, laundry, shoe repair, tailoring, and car washes. Veterinary services are also taxed.

Professional services — accounting, legal information, consulting — are generally not taxed. The difference is whether the service is personal care or a professional consultation. If you are unsure, ask the business before you pay.

Tax on specific items you might question

Candy and soda are taxed, but regular groceries are not. The rule is that anything sold in a supermarket as a grocery item is not taxed, except for candy, soda, and other items classified as "prepared food" or "candy." A bottle of water is not taxed. A bottle of soda is taxed.

Books and newspapers are not taxed in New York. A paperback novel, a hardcover book, and a newspaper all avoid sales tax. E-books and digital subscriptions are not taxed either.

Gasoline is taxed, but the tax is built into the price per gallon — you do not see it added at the pump. Cigarettes and tobacco products are taxed and also carry an additional state excise tax on top of the sales tax.

Frequently Asked Questions

Do I pay sales tax on a $110 item of clothing?

No. The exemption covers items under $110. An item that costs exactly $110 is not taxed. An item that costs $110.01 is taxed.

Is tax included in the price shown on the shelf?

No. The shelf price does not include sales tax. The 8.875 percent tax is added when you pay at the register. A $10 item will cost $10.89 after tax.

Do I pay sales tax on groceries if I order them for delivery?

No. Groceries are not taxed whether you buy them in the store or order them for delivery. Prepared foods and restaurant meals are taxed regardless of how you order them.

What happens if I buy something online from a seller outside New York?

If the seller does not collect New York tax, you may owe use tax when you file your state income tax return. Most individual shoppers do not report these purchases, and enforcement is uncommon for personal use items.

Are haircuts and salon services taxed?

Yes. All personal services including haircuts, manicures, massages, and dry cleaning are taxed at 8.875 percent in New York City.