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 the sum of three separate taxes: the New York State sales tax of 4 percent, the Metropolitan Commuter Transportation District tax of 0.375 percent, and the New York City sales tax of 4.5 percent. When you buy something in the five boroughs, all three taxes stack together to reach that total.

The rate applies to most goods and some services. Clothing under $110 per item is exempt, as are groceries and prescription medications. Restaurant meals, prepared foods, and most services are taxed at the full rate. The tax is calculated on the sale price before you pay, so the amount you see on the register is what you owe.

If you are buying something online from a retailer with a physical location in New York State, or from a large national retailer, sales tax is usually added at checkout. Smaller out-of-state sellers may not collect it, though New York State requires you to report and pay tax on those purchases yourself when you file your state tax return.

Key Takeaways

  • New York City's combined sales tax rate of 8.875 percent includes state, city, and transportation district taxes.
  • Clothing items under $110, groceries, and prescription medications are not subject to sales tax in New York City.
  • Restaurant meals, prepared foods, and most services are taxed at the full 8.875 percent rate.
  • Online purchases from retailers with New York locations typically have sales tax added at checkout.
  • The tax rate is the same across all five boroughs of New York City.

What is and is not taxed in New York City

Food you buy raw and cook at home is not taxed. This includes vegetables, meat, dairy, bread, and frozen uncooked meals. Once food is prepared or ready to eat — whether from a restaurant, deli, bakery, or food cart — the full sales tax applies. A sandwich from a deli counter is taxed. A loaf of bread from the shelf is not.

Clothing and footwear under $110 per item are exempt. If a shirt costs $109.99, no tax. If it costs $110 or more, tax applies to the full price. Accessories like belts, scarves, and hats are taxed regardless of price. Used clothing sold secondhand is also taxed.

Prescription medications are not taxed. Over-the-counter drugs, vitamins, and health supplies like bandages and thermometers are taxed. Haircuts, dry cleaning, and most personal services are taxed. Gym memberships and entertainment tickets are taxed. Rent and utilities are not.

How the tax breaks down by source

The 8.875 percent rate comes from three separate levies. The New York State sales tax is 4 percent and applies statewide. The Metropolitan Commuter Transportation District tax is 0.375 percent and funds public transit; it applies in New York City and surrounding counties. The New York City local sales tax is 4.5 percent and goes to the city budget.

Outside New York City but within New York State, the rate is lower because you pay only the state tax and any local tax that applies in that county. In most of upstate New York, the rate is between 7 and 8 percent. The MCTD tax and the 4.5 percent city tax explore only within the city limits.

Sales tax on online and mail orders

If you order from Amazon, Walmart, Target, or other large national retailers, sales tax is collected at checkout and calculated based on your New York City address. The retailer sends that tax to New York State and the city. This applies whether you order online or by phone.

Small out-of-state retailers without a warehouse or office in New York may not collect sales tax at the time of purchase. New York State law requires you to pay tax on those purchases yourself. You report the total amount you spent on untaxed out-of-state purchases when you file your New York State income tax return, and you owe tax at the New York City rate of 8.875 percent. Most people do not do this, but the obligation exists.

Digital products like e-books, music downloads, and streaming subscriptions are taxed in New York City. Software and apps are taxed. Digital newspapers and magazines are not taxed.

Sales tax on specific items you might buy

Alcohol is taxed at the standard 8.875 percent rate. Beer, wine, and spirits all have sales tax added at the register. Some cities in other states do not tax alcohol, but New York City does.

Cigarettes and vaping products are taxed at the standard rate, plus they carry an additional state excise tax that is built into the price. The sales tax is calculated on top of that excise tax.

Gasoline is taxed at 8.875 percent. The price you see at the pump includes sales tax. Diesel fuel is also taxed at the same rate.

Car rentals are taxed at 8.875 percent plus an additional 5 percent New York City surcharge on top of the rental price. A three-day rental is subject to both the standard sales tax and the extra city tax.

Hotel rooms are taxed at 8.875 percent plus a 5.875 percent New York City hotel occupancy tax. The total tax on a hotel stay is roughly 14.75 percent of the room rate.

How sales tax appears on your receipt

Most retailers show the subtotal, then the sales tax amount, then the total you owe. The tax is calculated by multiplying the subtotal by 0.08875. If you buy $100 worth of taxable items, the tax is $8.88 and your total is $108.88.

Some receipts break out the tax by source — showing how much goes to the state, how much to the city, and how much to the MCTD. Most do not. The total tax line is what matters for your purposes as a buyer.

If you are buying a mix of taxed and untaxed items, the cashier rings them separately or the register calculates tax only on the taxable items. A receipt showing groceries and a magazine will have tax only on the magazine.

Frequently Asked Questions

Do I pay sales tax if I buy something in New York City and take it home to another state?

Yes. Sales tax is based on where the sale happens, not where you live or where you take the item. If you buy something in a New York City store, you pay New York City sales tax at the register, even if you live in New Jersey or Connecticut.

Is there a sales tax on used items sold by individuals?

No. If you buy something from another person — through Facebook Marketplace, Craigslist, or a yard sale — there is no sales tax. Sales tax applies to sales by businesses. Used items sold by businesses, like used clothing at a thrift store or used books at a used bookstore, are taxed.

What about sales tax on items under $110 that are part of a set or bundle?

Each item is priced separately for the $110 clothing exemption. If you buy a shirt for $60 and pants for $70, neither is taxed because each is under $110. If you buy a single outfit priced as one item for $150, the whole thing is taxed because the bundle exceeds $110.

Do I owe sales tax on items I order from outside the United States?

International orders may have customs duties added when they arrive, but those are separate from New York sales tax. If the item is delivered to a New York City address and the seller is a large retailer, sales tax may be collected. If not, you technically owe New York sales tax on the purchase, reported when you file your state tax return.