New York's sales tax is 4 percent on most goods and services, but your total tax bill depends on your county

New York State charges a base sales tax of 4 percent on tangible goods and many services. However, most counties and cities add their own local sales tax on top of that. Your actual rate — what you see on a receipt — is the state 4 percent plus your local rate combined. In New York City, for example, the total is 8.875 percent. In Buffalo, it's 8 percent. In some rural counties, it's as low as 7 percent. The rate you pay depends entirely on where you make the purchase.

Sales tax is collected at the point of sale by the business selling to you. The business then sends that money to New York State and to the local tax authority. You don't file anything yourself for sales tax — it's built into the price you pay.

Key Takeaways

  • New York State's base sales tax is 4 percent, but counties and cities add local tax on top, making your total rate between 7 and 8.875 percent depending on location.
  • Most physical goods are taxed, but groceries, prescription medications, and some clothing under $110 are exempt.
  • Services like haircuts, repairs, and restaurant meals are taxed, though takeout and delivery have the same rate as dine-in.
  • The business collecting the tax sends it to the state and local authorities — you don't file or pay sales tax separately.
  • If you buy something in one county and use it in another, you pay tax based on where you made the purchase, not where you live.

What is and isn't taxed in New York

Most items you buy in a store are subject to sales tax: clothing, electronics, furniture, toys, and household goods all get taxed at your local rate. However, some categories are exempt. Groceries — unprepared food you cook at home — are not taxed. This includes bread, milk, vegetables, meat, and canned goods. But prepared food, snacks, and anything you eat in a restaurant or buy ready-to-eat is taxed.

Prescription medications are exempt from sales tax in New York. Over-the-counter medicines like aspirin or cold medicine are taxed. Clothing and footwear under $110 per item are exempt, but items over that price are taxed on the full amount. A $120 coat is taxed; a $90 shirt is not.

Services are generally taxed. A haircut, car repair, plumbing work, and appliance repair all have sales tax added. Restaurants charge tax on all meals, whether you eat there or take it home. Digital services like streaming subscriptions, e-books, and software downloads are taxed as well.

How local rates work across New York counties

New York has 62 counties, and each one sets its own local sales tax rate on top of the state's 4 percent. The local rate ranges from 3 percent to 4.875 percent. New York City — made up of five counties (New York, Kings, Queens, Bronx, and Richmond) — has a combined local rate of 4.875 percent, bringing the total to 8.875 percent. Westchester County's local rate is 4.5 percent, for a total of 8.5 percent. Upstate counties like Tompkins (Ithaca) have a 4 percent local rate, for a total of 8 percent.

Some counties have different rates in different towns or cities within them. For example, a town might have a slightly lower rate than the county average. When you buy something, the rate that applies is the one where the business is located, not where you live or where you'll use the item.

You can find your exact local rate by entering your address on the New York Department of Taxation and Finance website, or by asking a cashier. Most receipts also show the tax rate applied.

When you don't pay sales tax

Certain buyers and purchases are exempt from sales tax in New York. Resellers — businesses that buy goods to resell them — don't pay sales tax on their purchases if they have a resale certificate. They collect tax from their customers instead. If you own a small business and buy inventory, you would use a resale certificate to avoid paying tax on those purchases.

Nonprofit organizations registered with New York State can often buy goods and services without paying sales tax. Schools, hospitals, and charities typically may have access to, though they must provide proof of their nonprofit status.

Some items are exempt regardless of who buys them. Besides groceries and prescription drugs, these include newspapers, certain agricultural equipment, and items used in manufacturing. If you're unsure whether something is exempt, the business selling it should be able to tell you.

Sales tax on online and out-of-state purchases

If you buy something online from a retailer based outside New York, you may still owe New York sales tax. The rule depends on whether the seller has a physical presence in New York (called "nexus"). Large retailers like Amazon, Walmart, and Target have warehouses or offices in New York, so they collect New York sales tax on orders shipped to New York addresses. Smaller online retailers may not collect it.

If a seller doesn't collect New York sales tax at checkout, you are technically responsible for paying it yourself through a "use tax" return. In practice, most individual buyers don't file use tax returns. However, if you make frequent large purchases from out-of-state sellers, you may want to keep records.

When you buy something in another state and bring it into New York to use, you don't owe New York sales tax. The tax was already paid where you bought it. However, if you buy something in a state with no sales tax (like New Hampshire) and bring it to New York, you don't owe New York tax either — the exemption applies to the purchase, not the location where you use it.

Sales tax on vehicles and major purchases

Vehicles are taxed differently than regular goods. When you buy a car in New York, you pay sales tax on the purchase price at your local rate. If you trade in an old vehicle, the tax is calculated on the net price (the new car price minus the trade-in value). You pay the tax when you register the vehicle with the Department of Motor Vehicles, not at the dealership.

If you buy a vehicle out of state and register it in New York within 30 days, you owe New York sales tax on it. The rate is based on where you register it, not where you bought it. If you wait more than 30 days, you may still owe the tax, depending on the circumstances.

Real estate — buying a house or land — is not subject to sales tax in New York. Instead, there is a separate transfer tax (also called a mansion tax in some areas) that applies to certain property sales. That is a different tax with different rules.

How to understand your receipt

Your receipt shows the subtotal (the price before tax), the tax amount, and the total. The tax line should show the rate applied — for example, "Tax (8.875%)" in New York City. If you're buying multiple items at different tax rates (like groceries and a magazine), the receipt may show separate tax calculations.

If you notice the tax rate seems wrong, check your location. A receipt from a store in one county will show that county's rate, even if you live in another county. If you believe the rate is genuinely incorrect, you can report it to the New York Department of Taxation and Finance.

Keep receipts if you need them for business deductions or to track purchases for personal records. Receipts also serve as proof if you ever need to dispute a charge or return an item.

Frequently Asked Questions

Do I pay sales tax if I buy something online and pick it up in the store?

Yes. If you order online and pick up at a store location in New York, you pay the sales tax rate for that store's location. The tax is calculated at checkout based on the store address you select for pickup.

Is there sales tax on clothing in New York?

Clothing and footwear under $110 per item are exempt. Items priced at $110 or more are taxed. A pair of shoes for $105 is not taxed; a pair for $115 is taxed on the full $115.

What's the difference between sales tax and use tax?

Sales tax is collected by the seller at the time of purchase. Use tax is a tax you owe on items you buy without paying sales tax — usually out-of-state purchases. Most individual buyers don't file use tax returns, but the obligation exists if a seller didn't collect tax.

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

Yes. Services like haircuts, repairs, cleaning, and personal care are subject to sales tax in New York. The tax is added to the service charge.

Can I get a refund of sales tax if I return an item?

Yes. When you return an item and receive a refund, the sales tax is refunded as well. The refund amount should match what you originally paid, including tax.