New York City sales tax is 8.875 percent
The combined sales tax rate in New York City is 8.875 percent. This rate is made up of the New York State sales tax of 4 percent, the Metropolitan Transportation Authority tax of 0.375 percent, and the New York City sales tax of 4.5 percent. The rate applies to most goods and some services you buy within the five boroughs.
The 8.875 percent rate has been in place since 2010 and applies uniformly across Manhattan, Brooklyn, Queens, the Bronx, and Staten Island. If you buy something in a different part of New York State outside the city, the rate will be lower — typically between 7 and 8.875 percent depending on the county.
Key Takeaways
- New York City's combined sales tax rate is 8.875 percent on most purchases of goods and certain services.
- Groceries, prescription medications, and most clothing under $110 per item are exempt from sales tax in New York City.
- Restaurant meals, prepared foods, and non-prescription items are taxed at the full 8.875 percent rate.
- The tax is collected by the seller at the point of sale and does not appear as a separate line item on all receipts.
What is and isn't taxed in New York City
Most physical goods are subject to the 8.875 percent tax. Clothing and footwear under $110 per item are exempt, but items over that threshold are taxed. A pair of shoes costing $120 will be taxed; a $100 pair will not.
Groceries sold for home consumption are not taxed. This includes bread, milk, vegetables, meat, and canned goods. However, prepared foods — anything meant to be eaten when ready or heated at home — are taxed. A rotisserie chicken from a supermarket deli counter is taxed. Raw chicken from the butcher counter is not.
Prescription medications are exempt from sales tax. Over-the-counter medications like pain relievers, cold medicine, and vitamins are taxed. Restaurant meals, including takeout and delivery, are taxed at the full rate. Alcoholic beverages are also taxed.
Services that are taxed
Many services in New York City are subject to sales tax, though not all. Haircuts, dry cleaning, and laundry services are taxed. Repairs to tangible goods — fixing a watch, repairing shoes, or servicing a bicycle — are taxed. Hotel rooms are taxed at 8.875 percent plus an additional 5.875 percent city hotel tax, for a combined rate of 14.75 percent.
Personal services like massage therapy and gym memberships are taxed. Parking garages and lots are taxed. Telecommunications services, including cell phone plans and internet service, are taxed. However, professional services like accounting, legal information, and medical care are generally not subject to sales tax.
How the tax appears on your receipt
When you make a purchase, the seller calculates the tax and adds it to your total. Some receipts show the tax as a separate line; others include it in the final amount without breaking it out. The price displayed on a shelf tag or menu does not include sales tax — the 8.875 percent is added at checkout.
If you buy something for $100, you will pay $108.88 at the register. Online purchases shipped to a New York City address are subject to sales tax if the seller has a physical presence in New York State or meets certain sales thresholds set by state law.
Tax-free shopping periods
New York State runs a sales tax holiday in early September, typically lasting one week. During this period, most clothing and footwear under $110 per item are exempt from sales tax, even items that would normally be taxed. School supplies under $100 per item are also exempt during this week. The exact dates change each year and are announced by the New York State Department of Taxation and Finance.
No other regular tax-free shopping periods exist in New York City. Some items like energy-efficient appliances and equipment for people with disabilities may have exemptions under specific state programs, but these are not widely advertised and require documentation.
Differences between New York City and surrounding areas
If you travel outside New York City but stay in New York State, the sales tax rate drops. Westchester County charges 8.875 percent — the same as the city. Nassau County on Long Island charges 8.875 percent. However, Rockland County north of the city charges 8.375 percent, and some upstate counties charge as low as 7 percent or 7.25 percent.
New Jersey, which borders New York City, has a sales tax of 6.625 percent and exempts clothing entirely. Some New York City residents cross into New Jersey to buy clothing and shoes to avoid the tax, though this is only practical for large purchases.
Frequently Asked Questions
Is sales tax included in the price shown on store shelves?
No. The price on the shelf tag or menu does not include the 8.875 percent sales tax. The tax is added at the register. A $50 item will cost $54.44 after tax.
Are online purchases from out-of-state sellers taxed?
It depends on the seller. Large retailers like Amazon collect New York sales tax on orders shipped to New York City addresses. Smaller sellers may not, though New York State law requires you to report untaxed purchases on your state tax return. In practice, this is rarely enforced for individual purchases.
Do I pay sales tax on used items?
Sales tax applies to used goods sold by businesses — a used car from a dealer, used clothing from a resale shop. Items sold between individuals do not have sales tax, though the buyer and seller are responsible for knowing the difference.
What happens if a store charges me the wrong tax amount?
You can ask the cashier to recalculate or speak to a manager. If you believe a store is systematically overcharging tax, you can report it to the New York State Department of Taxation and Finance. Keep your receipt as proof.
Are there sales tax exemptions for seniors or people with disabilities?
New York State does not offer a blanket sales tax exemption for seniors. However, certain equipment and devices for people with disabilities may be exempt under specific programs. Contact the New York State Department of Taxation and Finance or your local tax assessor's office to learn whether a particular item qualifies.