New York's sales tax rate and what it covers
New York State charges a base sales tax of 4 percent on most goods and services. However, the total rate you pay depends on where you live, because counties and cities add their own local sales tax on top of the state rate. In New York City, for example, the combined rate is 8.875 percent. In Buffalo it is 8 percent. In Rochester it is 8.75 percent. The rate varies because each locality sets its own add-on, so you need to know your specific county and city to find your exact rate.
Sales tax applies to tangible goods — things you can touch and take home, like clothing, groceries, electronics, and furniture. It also applies to certain services, including hotel stays, parking, and prepared food. However, some items are exempt. Unprepared groceries (raw vegetables, meat, milk, bread) are not taxed. Prescription medications are not taxed. Clothing and footwear under $110 per item are not taxed in New York. These exemptions exist at the state level, though some localities have added their own rules.
Key Takeaways
- New York State charges 4 percent sales tax, but your actual rate includes county and city add-ons that range from 3.875 to 4.875 percent, making combined rates between 7.875 and 8.875 percent depending on location.
- Sales tax applies to most goods and prepared food, but not to unprepared groceries, prescription drugs, or clothing items under $110.
- The seller collects the tax at the point of sale and sends it to New York State and the appropriate local tax authority.
- You can find your exact local rate by entering your address on the New York Department of Taxation and Finance website or asking the business where you shop.
How local rates are added to the state rate
The state rate of 4 percent is the floor. Every county in New York adds a local rate on top of it. Most counties add between 3.875 and 4.875 percent, which means the combined rate in most places falls between 7.875 and 8.875 percent. Some counties have chosen lower rates — for instance, some rural counties in upstate New York have combined rates closer to 7 percent — but this varies by location.
Within a county, cities and towns may add additional tax. New York City adds 4.5 percent on top of the state 4 percent, reaching 8.5 percent, but then the city adds another 0.375 percent for a total of 8.875 percent. This layering means that two stores a few miles apart in different counties or cities can have different rates. The business you are shopping at is required to display the rate or tell you what it is if you ask.
What items are taxed and what are not
Groceries are the most common source of confusion. Unprepared food — raw meat, fresh vegetables, milk, eggs, bread, cereal — is not taxed. But prepared food is taxed. If you buy a rotisserie chicken from a grocery store deli, you pay tax. If you buy a raw chicken to cook at home, you do not. If you buy a sandwich from a deli counter, you pay tax. If you buy sliced deli meat to make sandwiches at home, you do not.
Clothing under $110 per item is exempt from sales tax in New York. A $100 shirt is not taxed. A $120 shirt is taxed on the full amount. This applies to shoes, coats, pants, and accessories like belts and scarves. However, items like hats, gloves, and swimwear have their own rules — some are exempt, some are not — so if you are unsure, ask the cashier or check the receipt.
Services that are taxed include hotel rooms, parking fees, and car rentals. Haircuts and personal grooming services are taxed. Repair services — fixing a phone, repairing a car, fixing a computer — are taxed. However, some services are not taxed, including medical services, dental services, and legal services. The rule is not always obvious, so if a service seems like it should be taxed and you are not charged, that is likely correct.
Who collects the tax and where it goes
The business where you make the purchase collects the sales tax from you at the register. The business then holds that money and sends it to New York State and the local tax authority on a schedule set by the state. Most businesses send their collected tax monthly, though some larger retailers send it more frequently. The business is responsible for sending the correct amount — if they collect tax and do not send it, they face penalties and interest.
The state keeps the 4 percent state portion. The county and city keep their portions. This money funds local services, schools, and infrastructure. As a consumer, you do not file anything related to sales tax — the business handles all reporting and payment to the government.
How to find your exact local sales tax rate
The New York Department of Taxation and Finance maintains a sales tax rate lookup tool on its website. You enter your street address, and it tells you the exact combined rate for your location. This is the fastest way to find your rate if you are moving to a new area or shopping in a different county.
You can also call the New York Department of Taxation and Finance at 518-457-5181 during business hours and provide your address. A staff member can tell you the rate. If you are shopping in a store and want to know the rate before you buy, you can ask the cashier — they are required to know it or be able to look it up quickly.
Sales tax on online purchases and out-of-state orders
If you order something online from a retailer that has a physical location in New York, sales tax is charged based on the delivery address. If the item is being shipped to a New York address, New York sales tax applies. If it is being shipped out of state, it typically does not.
For online retailers without a physical presence in New York, the rules have changed in recent years. Many large online retailers now collect New York sales tax on orders shipped to New York addresses, even if the retailer is based elsewhere. However, some smaller online retailers may not. If you are charged tax, it appears on your receipt. If you are not charged and you believe you should have been, you can report it to the New York Department of Taxation and Finance, though the state does not pursue individual transactions.
Tax-free shopping periods and special rules
New York does not have a statewide tax-free shopping week like some other states do. However, certain items are always exempt, and certain organizations (nonprofits, schools, government agencies) can make tax-exempt purchases if they have the proper documentation.
If you are a New York resident and you purchase clothing or footwear under $110, you never pay sales tax on those items, regardless of the time of year. This is a permanent exemption, not a temporary promotion. Some retailers may mistakenly charge tax on these items — if that happens, you can ask for a refund at the register or contact the retailer's customer service.
Frequently Asked Questions
Why does the sales tax rate differ between counties?
Each county and city in New York sets its own local sales tax rate on top of the state's 4 percent base. Counties use this revenue for local services, schools, and infrastructure. The state allows localities to set their own rates within limits, which is why rates vary across the state.
Is sales tax included in the price shown on the shelf?
No. The price on the shelf or tag is the pre-tax price. Sales tax is added at the register. This means a $10 item will cost more than $10 when you check out, depending on your local rate.
Do I pay sales tax on groceries?
It depends on the type of food. Unprepared groceries like raw meat, fresh produce, milk, and bread are not taxed. Prepared food — rotisserie chicken, deli sandwiches, hot pizza — is taxed. If you are unsure whether a specific item is prepared or unprepared, ask the cashier before you buy.
Can I get a refund if I was charged sales tax on a tax-exempt item?
Yes. If you were charged tax on clothing under $110, prescription medication, or another exempt item, ask the cashier or the store's customer service desk for a refund. Bring your receipt. Most stores will process the refund when ready.
Do I need to report sales tax on my income tax return?
No. Sales tax is collected by the business and reported to the state by the business. You do not file anything related to sales tax as a consumer. Your income tax return does not include sales tax information.