New York City's combined sales tax is 8.875 percent

New York City's sales tax rate is 8.875 percent. This is the total you pay when you buy taxable goods or services in the five boroughs—Manhattan, Brooklyn, Queens, The Bronx, and Staten Island. The rate combines 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 8.875 percent rate applies to most retail purchases: clothing, electronics, furniture, and prepared food. However, some items are taxed at a lower rate or not taxed at all. Understanding which items fall into each category helps you predict what you'll actually pay at checkout.

Key Takeaways

  • New York City's combined sales tax rate is 8.875 percent on most taxable goods and services.
  • Unprepared food—groceries like bread, milk, and vegetables—is not subject to sales tax in New York City.
  • Clothing and footwear under $110 per item are exempt from sales tax, but items over that threshold are taxed at the full rate.
  • Prepared food, restaurant meals, and takeout are taxed at 8.875 percent, even if you eat it at home.
  • The sales tax rate is the same across all five boroughs; it does not vary by neighborhood or district.

What is and isn't taxed in New York City

Not everything you buy in New York City is subject to the 8.875 percent rate. The most significant exemption is unprepared food—items you cook yourself. Milk, eggs, bread, fresh vegetables, frozen vegetables, and raw meat are not taxed. Once food is prepared for when ready consumption, the tax applies. A rotisserie chicken from a grocery store deli counter is taxed; a raw chicken from the butcher section is not.

Clothing and footwear have their own rule. Items priced under $110 are exempt from sales tax. A $100 pair of shoes is not taxed. A $120 pair is taxed at 8.875 percent on the full amount. This threshold applies per item, not per purchase, so you could buy five $20 shirts tax-free, but a $150 coat would be taxed.

Prescription medications and medical devices are not taxed. Over-the-counter medications like aspirin and cold medicine are taxed. Newspapers and magazines are not taxed, but books are not exempt either—they are taxed like other goods.

Prepared food and restaurant meals

Any food prepared for when ready consumption is taxed at 8.875 percent. This includes restaurant meals, takeout, deli sandwiches, pizza by the slice, coffee from a café, and food from food carts. The tax applies whether you eat it in the restaurant, take it home, or have it delivered.

The distinction between prepared and unprepared is sometimes unclear at the register. A pre-made salad from a grocery store salad bar is taxed. A bag of salad greens you assemble yourself is not. If you are unsure, ask the cashier before you pay—the store's point-of-sale system is programmed with the correct category for each item.

Services and other purchases

Sales tax applies to many services beyond goods. Haircuts, dry cleaning, and car repairs are taxed at 8.875 percent. Hotel rooms are taxed at a different rate—the city hotel tax is 5.875 percent on top of the room rate, making the total tax on lodging 14.75 percent. Parking garages and lots are taxed at 8.875 percent.

Digital goods and services are generally taxed. E-books, streaming subscriptions, and software downloads are subject to sales tax. Gym memberships and personal training sessions are taxed. Utilities—electricity, gas, and water—are not taxed.

How the tax appears on your receipt

When you check out, the cashier or register will show the subtotal, then add the sales tax, then show the total you owe. Some stores round the tax to the nearest cent; others calculate it precisely. If you pay with cash, you might receive a penny or two in change that reflects the rounding.

On your receipt, the tax line usually says "Tax" or "Sales Tax" and shows the amount in dollars and cents. If you are buying a mix of taxable and non-taxable items—for example, groceries and a magazine—the register calculates tax only on the taxable items. You do not need to do this math yourself; the store's system handles it.

Sales tax on online purchases

Online retailers must collect New York City sales tax on orders shipped to addresses in the city. This applies whether the retailer is based in New York or elsewhere. The tax is calculated based on your shipping address, not where the company is located. If you order something online and have it shipped to a New York City address, you pay 8.875 percent tax.

Some retailers display the tax at checkout; others add it after you enter your address. Either way, the final amount you pay includes the full 8.875 percent. This rule applies to most major retailers, though some smaller sellers may not yet be collecting the tax—but you are still legally responsible for it.

Frequently Asked Questions

Is the sales tax rate different in different parts of New York City?

No. The 8.875 percent rate applies across all five boroughs. Manhattan, Brooklyn, Queens, The Bronx, and Staten Island all have the same combined rate. There are no neighborhood-specific variations.

Why is the clothing exemption only for items under $110?

New York State law exempts clothing and footwear under $110 per item from sales tax as a way to reduce the tax burden on basic clothing needs. Items over $110 are considered luxury goods and are taxed. The threshold has been in place since 1997 and has not changed.

Do I have to pay sales tax on food I buy at a grocery store deli?

It depends on whether the food is prepared or unprepared. A pre-made sandwich, rotisserie chicken, or hot pizza slice is taxed. Raw ingredients—bread, cheese, deli meat you ask them to slice—are not taxed. Ask the cashier if you are unsure which category an item falls into.

What about sales tax on delivery services like food delivery apps?

The food itself is taxed at 8.875 percent. The delivery fee is usually not taxed, though some apps may add their own service charges. The sales tax on the food is calculated by the restaurant or store, not by the app.

Do I pay sales tax on items I return?

When you return an item, the store refunds the sales tax along with the purchase price. If you exchange an item for another of the same price, no new tax is charged. If you exchange it for something more expensive, you pay tax on the difference.