New York's statewide sales tax is 4 percent, but your actual rate depends on your county
The New York State sales tax is 4 percent on most purchases. However, counties and cities can add their own local sales taxes on top of that amount. Your total sales tax rate ranges from 4 percent to 8.875 percent depending on where you live and what you buy. The state collects the 4 percent; counties collect between 0 and 4.875 percent more.
When you see a price tag in a New York store, the sales tax shown at checkout includes both the state rate and your local rate combined. You do not pay them separately — the register calculates the total. What matters for your budget is the final number you see, not how it breaks down between state and local.
Key Takeaways
- New York State charges 4 percent sales tax on most goods, and counties add between 0 and 4.875 percent on top of that.
- New York City has the highest combined rate at 8.875 percent; other counties range from 4 percent to 8.75 percent.
- Some items are exempt from sales tax in New York, including most groceries, prescription medications, and clothing under $110.
- The sales tax rate you pay is determined by where the sale happens, not where you live or where you are from.
Sales tax rates by major New York counties
New York City (which includes New York, Kings, Queens, Bronx, and Richmond counties) has a combined rate of 8.875 percent — the highest in the state. Westchester County is 8.875 percent. Nassau and Suffolk counties on Long Island are both 8.875 percent. Rockland County is 8.625 percent. Erie County (Buffalo area) is 8.75 percent.
Upstate counties vary more widely. Onondaga County (Syracuse area) is 8 percent. Monroe County (Rochester area) is 8 percent. Albany County is 8 percent. Tompkins County (Ithaca area) is 8 percent. Some smaller rural counties in the North Country and Catskills have rates as low as 4 percent, which means they collect no local tax on top of the state rate.
The rate you pay is determined by the location where the purchase happens, not by where you live. If you buy something in New York City, you pay 8.875 percent even if you live in a county with a lower rate. If you buy something in a 4 percent county, you pay 4 percent even if you live in the city.
What is and is not taxed in New York
Groceries and food are not subject to sales tax in New York. This includes bread, milk, vegetables, meat, eggs, and other items you buy at a supermarket to cook at home. However, prepared foods — restaurant meals, deli items, hot foods — are taxed at the full rate.
Prescription medications are not taxed. Over-the-counter medicines like aspirin and cold medicine are taxed. Clothing and footwear under $110 per item are not taxed; items over $110 are taxed on the full price. A $105 shirt is tax-free; a $115 shirt is taxed.
Most other goods are taxed: gasoline, household supplies, electronics, furniture, and tools. Services vary — haircuts are taxed, but labor on repairs may not be, depending on the type of work. If you are unsure whether something is taxed, ask the cashier or check the receipt after purchase.
How sales tax is collected and reported
Businesses collect sales tax from customers at the point of sale and send it to New York State. The state keeps the 4 percent and distributes the local portion to counties and cities. Businesses file sales tax returns monthly or quarterly depending on their volume. The New York Department of Taxation and Finance oversees collection and enforcement.
If you own a business in New York, you must register for a sales tax permit before you start selling taxable items. You collect the tax from customers, hold it in a separate account, and remit it on schedule. Failure to collect or remit sales tax can result in penalties and interest.
Sales tax on online purchases
Online retailers must collect New York sales tax on orders shipped to New York addresses. This applies whether the retailer is based in New York or elsewhere. The tax rate is based on the delivery address, not the seller's location. If you order something online to be delivered to your New York address, you pay the sales tax rate for that address.
Some older online retailers do not collect New York sales tax, but this is becoming less common. If you receive an order without tax charged, you may owe use tax — a tax on items you buy outside New York for use inside it. Most individuals do not report use tax on personal purchases, but it is technically owed.
Sales tax on vehicles and large purchases
Vehicle purchases are taxed at the full local sales tax rate. When you buy a car in New York, the dealer collects sales tax based on the purchase price and the location of the sale. If you buy a $25,000 car in New York City, you pay $2,218.75 in sales tax (8.875 percent). The same car in a 4 percent county costs $1,000 in tax.
Some people try to avoid sales tax by buying a vehicle out of state and registering it in New York. The state charges use tax on out-of-state purchases, and the Department of Motor Vehicles collects it when you register the vehicle. You cannot avoid New York sales or use tax on a vehicle by buying it elsewhere.
Frequently Asked Questions
What is the sales tax rate where I live?
Your rate depends on your county. New York City and surrounding counties (Westchester, Nassau, Suffolk) are 8.875 percent. Most other populated counties are 8 percent. Rural counties can be as low as 4 percent. You can find your exact rate on the New York Department of Taxation and Finance website by entering your address, or ask a local business.
Are groceries taxed in New York?
Most groceries are not taxed — milk, bread, vegetables, meat, and eggs are all tax-free. Prepared foods and restaurant meals are taxed. Some items blur the line: a rotisserie chicken from a supermarket deli is taxed, but raw chicken is not. When in doubt, check your receipt.
Do I pay sales tax on clothes?
Clothing and footwear under $110 per item are not taxed in New York. A pair of $80 shoes is tax-free; a pair of $150 shoes is taxed on the full $150. Accessories like belts, hats, and gloves are taxed regardless of price.
Why is sales tax different in different counties?
New York State sets the base rate at 4 percent. Counties and cities can add local sales tax to fund local services and infrastructure. Wealthier counties near New York City chose higher rates; rural counties chose lower rates or none at all. The result is variation across the state.
Do I owe sales tax on items I buy online from out of state?
Yes. New York charges use tax on items purchased outside the state for use inside it. Most online retailers now collect New York sales tax automatically. If they do not, you technically owe use tax when the item arrives, though most individuals do not report it on personal purchases.