The majority of U.S. states charge a sales tax on retail goods and services. New York state is no different. The state’s sales tax is relatively low, but once you add on taxes from individual counties and cities, it can add up to a substantial chunk of change. Let’s review what New York sales tax is and how it differs across the state.
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Get Started NowNew York State Sales Tax
In New York, sales tax rates typically range from 4% to 8.875%, with most counties and cities imposing a rate of 8.25%.
New York’s sales tax structure includes two components: sales tax and use tax. The sales tax applies to goods purchased within the state, while the use tax is levied on goods bought outside New York but used within the state. (Learn more about the differences between sales tax and use tax in the next section.) The statewide sales tax rate is currently 4%, with counties adding an additional 3% to 4.875%, depending on the location.
Counties in the Metropolitan Commuter Transportation District (MCTD) also collect an additional 0.375% sales tax. This surcharge applies to all taxable sales within the following counties: Bronx, Kings (Brooklyn), New York (Manhattan), Queens, Richmond (Staten Island), Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and Westchester.
Sales Tax in New York Counties
| County | State Rate | County/City Rate | Total Sales Tax |
|---|---|---|---|
| Albany | 4% | 4% | 8% |
| Allegany | 4% | 4.5% | 8.5% |
| Bronx | 4% | 4.875% | 8.875% |
| Broome | 4% | 4% | 8% |
| Cattaraugus | 4% | 4.75% | 8.75% |
| Cayuga | 4% | 4% | 8% |
| Chautauqua | 4% | 4% | 8% |
| Chemung | 4% | 4% | 8% |
| Chenango | 4% | 4% | 8% |
| Clinton | 4% | 4% | 8% |
| Columbia | 4% | 4.125% | 8.125% |
| Cortland | 4% | 4% | 8% |
| Delaware | 4% | 4% | 8% |
| Dutchess | 4% | 4.375% | 8.375% |
| Erie | 4% | 4.75% | 8.75% |
| Essex | 4% | 4% | 8% |
| Franklin | 4% | 4% | 8% |
| Fulton | 4% | 4.25% | 8.25% |
| Genesee | 4% | 4.75% | 8.75% |
| Greene | 4% | 4% | 8% |
| Hamilton | 4% | 4.25% | 8.25% |
| Herkimer | 4% | 4.75% | 8.75% |
| Jefferson | 4% | 4% | 8% |
| Kings (Brooklyn) | 4% | 4.875% | 8.875% |
| Lewis | 4% | 4.75% | 8.75% |
| Livingston | 4% | 4.5% | 8.5% |
| Madison | 4% | 4.75% | 8.75% |
| Monroe | 4% | 4% | 8% |
| Montgomery | 4% | 4.25% | 8.25% |
| Nassau | 4% | 4.875% | 8.875% |
| New York (Manhattan) | 4% | 4.875% | 8.875% |
| Niagara | 4% | 4.75% | 8.75% |
| Oneida | 4% | 4.75% | 8.75% |
| Onondaga | 4% | 4% | 8% |
| Ontario | 4% | 4% | 8% |
| Orange | 4% | 4.375% | 8.375% |
| Orleans | 4% | 4% | 8% |
| Oswego | 4% | 4.75% | 8.75% |
| Otsego | 4% | 4.25% | 8.25% |
| Putnam | 4% | 4.375% | 8.375% |
| Queens | 4% | 4.875% | 8.875% |
| Rensselaer | 4% | 4% | 8% |
| Richmond (Staten Island) | 4% | 4.875% | 8.875% |
| Rockland | 4% | 4.375% | 8.375% |
| Saratoga | 4% | 4% | 8% |
| Schenectady | 4% | 4% | 8% |
| Schoharie | 4% | 4% | 8% |
| Schuyler | 4% | 4% | 8% |
| Seneca | 4% | 4% | 8% |
| Steuben | 4% | 4.5% | 8.5% |
| Suffolk | 4% | 4.625% | 8.625% |
| Sullivan | 4% | 4.125% | 8.125% |
| Tioga | 4% | 4% | 8% |
| Tompkins | 4% | 4% | 8% |
| Ulster | 4% | 4.125% | 8.125% |
| Warren | 4% | 4% | 8% |
| Washington | 4% | 4% | 8% |
| Wayne | 4% | 4% | 8% |
| Westchester | 4% | 4.875% | 8.875% |
| Wyoming | 4% | 4.75% | 8.75% |
| Yates | 4% | 4% | 8% |
What Is Sales and Use Tax?
When you read about sales tax in New York, you’ll see talk of “Sales and Use Tax.” But what is use tax, and why do you have to pay it?
Sales tax applies to goods and services you buy within a state. Use tax is an equivalent tax that you pay on items that you purchase outside of the state. It ensures that out-of-state retailers don’t benefit just because they don’t have to pay the in-state sales tax. The use tax in New York is equal to the sales tax. The two taxes are also mutually exclusive so if you pay one of them, you won’t have to pay the other.
Let’s look at an example to show how the use tax works. Imagine you’re a New York resident and you buy a computer somewhere within the state. The seller will collect the regular New York sales tax. But if you buy a computer from New Hampshire, the seller won’t collect the New York sales tax. That means you can get the computer without paying the full tax on it. So New York collects a use tax. New York requires residents to report their out-of-state spending in their New York income taxes.
What’s Taxed and What Isn’t?
In New York, most retail sales are subject to sales and use tax. However, certain items, such as motor vehicles, are taxed based on the buyer’s residence rather than the location of purchase.
Some goods are exempt from sales tax. Common examples include specific food items, beverages, newspapers, laundering and dry-cleaning services, prescription medications and feminine hygiene products. Clothing and footwear priced under $110 are tax-exempt, while items over this amount are taxed at standard rates. Water delivered through mains or pipes is also exempt, but public utilities like gas, electricity and telephone services are taxable.
Car rentals can be costly in New York. The state imposes a 6% sales tax on passenger car rentals, with an additional 5% supplemental tax for rentals within the Metropolitan Commuter Transportation District (MCTD). Parking services in New York City, regardless of whether you rent a vehicle, are subject to a 4% state sales tax, along with applicable local taxes.
You can find a more complete breakdown of taxable goods and services with New York State’s Quick Reference Guide for Taxable and Exempt Property and Services.
New York City Sales Tax
On top of the state sales tax, New York City has a sales tax of 4.5%. The city also collects a tax of 0.375% because it is within the MCTD. The total sales tax in New York City is 8.875%. This is the highest rate in the state. With such a high sales tax, it’s no wonder the cost of living in New York City is so high.
Services Subject to Tax in New York City
New York City collects sales tax on certain services that the state doesn’t tax. Examples include beautician services, barbering, tanning and massage services. The city also charges sales tax at health and fitness clubs, gymnasiums, saunas and similar facilities. If you’re trying to improve your credit, keep in mind that New York City charges sales tax on most credit reporting services.
Bottom Line
New York state has a relatively low tax rate at just 4%. However, each county or city in the state adds its own sales tax. There’s also a transit tax that some counties include in their sales tax. The result is that you can expect to pay between 7% and 8.875% sales tax in New York. New York City has the state’s highest tax rates at 8.875%. Common goods that are exempt from sales tax include groceries and clothing or footwear that cost less than $110. New York City has its own rules, though. It charges a sales tax on some services that the state doesn’t tax.
Tips for Filing Taxes
- If you have any tax-related questions, don’t hesitate to talk to an accountant or a financial advisor who specializes in taxes. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- If you don’t know whether you’re better off with the standard deduction versus itemizing, you might want to read up on it and do some math. Educating yourself before the tax return deadline could save you a significant amount of money.
- Figure out whether you’ll be getting a refund or will owe the government money so you can plan your household budget accordingly. SmartAsset’s tax return calculator can help you figure this out.
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