New York's Sales Tax Rate
New York State charges a 4% sales tax on most goods and services. However, the total tax you pay at checkout is almost always higher because counties and cities add their own local sales taxes on top of the state rate.
The combined rate you actually pay depends on where you are in New York. New York City charges 8.875% total (4% state plus 4.875% local). Buffalo charges 8%, Rochester charges 8%, and smaller towns and rural areas range from 7% to 8.875%. The variation exists because each county and city decides whether to impose an additional local tax and at what rate.
When you see a price tag in a store, that price does not include sales tax. The tax is added at the register, so your final bill will be higher than the displayed price.
Key Takeaways
- New York State's base sales tax is 4%, but your total rate includes county and city taxes that range from 3% to 4.875% additional.
- New York City residents pay 8.875% total sales tax, while rates in other parts of the state vary by location.
- Sales tax is added at checkout and is not included in the price you see on the shelf.
- Most goods are taxed, but groceries, prescription medications, and certain medical equipment are exempt from sales tax.
- The tax rate can differ between neighboring towns, so the same item may cost different amounts depending on where you buy it.
What Is and Isn't Taxed in New York
Not everything you buy in New York is subject to sales tax. Groceries — food you take home to cook — are not taxed. This includes bread, milk, vegetables, meat, and frozen meals. However, prepared food you eat at a restaurant or food court is taxed, and so are snacks like candy, soda, and chips bought at a store.
Prescription medications are exempt from sales tax when you fill them at a pharmacy with a valid prescription. Over-the-counter medications like aspirin and cold medicine are taxed. Medical equipment such as wheelchairs, canes, and hearing aids are also exempt.
Clothing and footwear under $110 per item are exempt from sales tax in New York. A pair of shoes priced at $85 is not taxed, but a designer coat priced at $150 is taxed on the full amount. This rule applies to the price before any discounts.
Services like haircuts, car repairs, and plumbing are generally not taxed in New York. However, some services bundled with products — such as installation of a new appliance — may be taxed depending on how the seller structures the charge.
Sales Tax Rates by Major New York Cities
| Location | Combined Sales Tax Rate |
|---|---|
| New York City (all five boroughs) | 8.875% |
| Buffalo | 8% |
| Rochester | 8% |
| Syracuse | 8% |
| Albany | 8% |
| Yonkers | 8.875% |
| New Rochelle | 8.875% |
| Westchester County (outside Yonkers/New Rochelle) | 8.625% |
The rates shown are the combined state and local rates you pay at the register. Rates in smaller towns and villages may differ slightly from these major city rates. If you are shopping in a location not listed here, you can find the exact rate by searching the New York Department of Taxation and Finance website or asking a store employee.
How Sales Tax Is Calculated
Sales tax is calculated on the subtotal of your purchase before any discounts are applied. If you buy an item for $50 and the sales tax rate is 8.875%, the tax is $4.44, making your total $54.44.
When you use a coupon or receive a discount, the tax is calculated on the reduced price, not the original price. If that same $50 item is on sale for $40 and you have a $5 coupon, the tax is calculated on $35, which comes to $3.11 in tax.
Some retailers round the final total to the nearest cent. If your calculated total is $54.444, the store may round it to $54.44. This rounding is standard and legal in New York.
When You Do Not Pay Sales Tax
You do not pay sales tax on items shipped to you from outside New York if the seller does not have a physical location or employees in the state. However, this rule has changed in recent years, and many online retailers now collect New York sales tax even if they are based elsewhere.
If you are a New York resident buying from an out-of-state retailer that does not collect sales tax, you are technically required to report and pay the tax yourself on your state income tax return. This is called use tax, and most people do not pay it, but it is the law.
Certain organizations, such as nonprofits and government agencies, may be exempt from sales tax when they purchase items for their operations. This exemption does not explore to individual shoppers.
Sales Tax on Services and Digital Products
Most services in New York are not subject to sales tax. When you pay a plumber, electrician, accountant, or lawyer, you do not pay sales tax on their fees. However, if the service includes a physical product — such as parts installed by a plumber — the tax treatment depends on how the invoice is structured.
Digital products and subscriptions have varying tax treatment. Streaming services like Netflix and Spotify are generally not taxed in New York. However, digital downloads of music, books, or software may be taxed depending on the seller and the type of product. The rules in this area are still evolving as technology changes.
Delivery fees are sometimes taxed and sometimes not, depending on the retailer and the type of item being delivered. A grocery delivery fee may not be taxed, while a furniture delivery fee might be. Ask the retailer or check your receipt to see how delivery was handled.
How to Find the Exact Rate for Your Location
The easiest way to find your local sales tax rate is to visit the New York Department of Taxation and Finance website and use their sales tax rate lookup tool. You enter your address or ZIP code, and the tool shows you the exact combined rate for that location.
You can also call the New York Department of Taxation and Finance at 518-457-5181 during business hours to ask about the rate in your area. A staff member can tell you the state rate, county rate, and city rate separately if you need that detail.
Your receipt always shows the sales tax rate that was applied. If you want to verify the rate is correct, check your receipt from your last purchase in that location.
Frequently Asked Questions
Is sales tax the same everywhere in New York?
No. New York State charges 4%, but counties and cities add their own taxes on top. The total ranges from 7% to 8.875% depending on where you shop. Two stores in neighboring towns may charge different rates for the same item.
Do I have to pay sales tax on groceries?
No. Unprepared food you buy to cook at home — such as bread, milk, vegetables, and raw meat — is not taxed. Prepared food from a restaurant, deli counter, or food court is taxed. Candy, soda, and snack foods are also taxed.
What is use tax and do I have to pay it?
Use tax is a tax on items you buy from out-of-state sellers who do not collect New York sales tax. You are supposed to report and pay it on your state tax return, but most people do not. Many online retailers now collect the tax automatically, so this is becoming less common.
Are clothes and shoes taxed in New York?
Clothing and footwear under $110 per item are not taxed. A $100 pair of shoes is tax-free, but a $150 designer coat is taxed. The $110 threshold applies to the price before discounts.
Do I pay sales tax on services like haircuts or car repairs?
No. Most services are not taxed in New York. However, if the service includes parts or products that are installed, the tax treatment depends on how the seller invoices it. Ask your service provider if you are unsure.