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 three separate taxes: the New York State sales tax (4 percent), the Metropolitan Transportation Authority tax (0.375 percent), and the New York City sales tax (4.5 percent). When you buy something in the five boroughs, all three taxes stack together to reach that 8.875 percent total.

This rate applies to most goods and some services. The tax is added at the point of sale — the cashier or checkout system calculates it based on the item's price. You do not pay it separately; it is included in the final amount you owe.

The rate has been the same since 2010, though the individual components have changed slightly over time. If you are comparing NYC to other parts of New York State, the rate outside the city is lower because the MTA and city portions do not explore.

Key Takeaways

  • New York City's combined sales tax rate is 8.875 percent, made up of state, MTA, and city taxes.
  • The tax applies to most tangible goods, but not to groceries, prescription medications, or most clothing under $110.
  • Some services like haircuts, dry cleaning, and restaurant meals are taxed, while others like medical services are not.
  • The tax is calculated and added at checkout; you do not pay it as a separate transaction.

What items are taxed and what are not

Groceries are not taxed in New York City. This includes fresh produce, meat, dairy, bread, and other food items you buy to prepare at home. However, prepared foods — items sold hot or ready to eat — are taxed. 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 not taxed. A $100 shirt is tax-free. A $150 jacket is taxed. The $110 threshold applies to each individual item, not to your total purchase. Designer clothes, work uniforms, and children's clothing all follow the same rule.

Prescription medications are not taxed. Over-the-counter medicines, vitamins, and health supplements are taxed. A prescription for antibiotics is tax-free. Ibuprofen from the shelf is taxed.

Most other goods — electronics, furniture, books, toys, household items — are taxed at the full 8.875 percent rate.

Services that are and are not taxed

Restaurant meals and takeout food are taxed. This includes coffee shops, fast food, and sit-down restaurants. The tax applies whether you eat there or take it with you. Alcoholic beverages are also taxed.

Haircuts, hair coloring, and salon services are taxed. Dry cleaning and laundry services are taxed. Shoe repair is taxed. These are considered personal services and fall under the tax code.

Medical services — doctor visits, dental work, physical therapy — are not taxed. Legal services are not taxed. Accounting and tax preparation services are not taxed. These are professional services that fall outside the sales tax scope.

Hotel rooms are taxed at a different rate. New York City charges a 5.875 percent hotel tax on top of the regular sales tax, making the total tax on a hotel stay 14.75 percent. This is separate from the sales tax and is calculated on the room rate alone.

How the tax is calculated and charged

The store's register or point-of-sale system automatically calculates the tax based on the item's price and category. For a single item, the math is straightforward: multiply the price by 0.08875. A $100 item costs $108.88 after tax.

When you buy multiple items, the tax is usually calculated on the total of all taxable items. If you buy a $50 shirt (taxed), a $20 loaf of bread (not taxed), and a $30 book (taxed), the tax applies only to the $80 in taxable items, not the full $100.

Some stores round the final total to the nearest cent. The rounding rules are set by New York State, and stores must follow them consistently. You may notice the tax on your receipt differs slightly from what you calculate by hand — this is usually due to rounding.

Online purchases from New York retailers are also taxed at 8.875 percent. Out-of-state retailers may or may not charge tax depending on their location and the current tax laws, which change frequently.

Sales tax in other parts of New York State

Outside New York City, sales tax rates vary by county. Most of upstate New York charges between 7 and 8.875 percent, depending on whether the county has an additional local tax. Westchester County, just north of the city, charges 8.875 percent — the same as NYC. Nassau and Suffolk counties on Long Island charge 8.875 percent as well.

Counties farther from the city often charge lower rates. Some rural counties charge 7 percent or 7.25 percent. The difference comes from whether the county has added its own local sales tax on top of the state rate.

If you buy something in one county and bring it to another, you do not owe additional tax. The tax is paid where you make the purchase. If you buy a coat in Westchester and bring it to NYC, you do not pay NYC tax on top of what you already paid.

Special sales tax situations

New York State has a sales tax holiday for clothing and footwear in January. During this week, items under $110 are not taxed, even though they normally would be if they were over the $110 threshold. This holiday typically runs for one week in early January, though the exact dates change each year. Check the New York State Department of Taxation and Finance website for the current year's dates.

Certain organizations — nonprofits, schools, and government agencies — can buy items tax-free if they have a resale certificate or tax exemption certificate. This does not explore to individual shoppers.

If you are a New York City resident and you buy something online from an out-of-state seller who does not charge tax, you may owe use tax on that purchase. Use tax is the same rate as sales tax (8.875 percent in NYC) and is meant to level the playing field between in-state and out-of-state purchases. Most individual shoppers do not pay use tax, but it technically exists as a legal obligation.

Frequently Asked Questions

Is the 8.875 percent tax included in the price shown on the shelf?

No. The price on the shelf or tag is the pre-tax price. The 8.875 percent is added at checkout. This is why a $10 item costs $10.89 when you pay. Some stores display the after-tax price on a small label, but this is not required.

Do I pay sales tax on groceries if I buy them at a restaurant or prepared food counter?

It depends on whether the food is prepared or ready to eat. A rotisserie chicken from the supermarket deli counter is taxed. Raw chicken from the butcher section is not. If you are unsure, ask the cashier — they can tell you whether a specific item is taxed.

What if I buy clothing that costs exactly $110?

Items at exactly $110 are not taxed. The rule is "under $110," which means $109.99 and below are tax-free. At $110.00 and above, tax applies. The threshold is strict.

Do I owe sales tax on items I buy online and have shipped to NYC?

If the online retailer is based in New York or has a physical presence in New York, they must charge you 8.875 percent sales tax. If they are based out of state and do not have a New York location, they may not charge tax. However, New York law says you owe use tax on those purchases — though most individuals do not pay it.

Is there a difference in sales tax between the five boroughs?

No. Manhattan, Brooklyn, Queens, the Bronx, and Staten Island all charge the same 8.875 percent rate. The rate is citywide, not borough-specific.