New York Sales Tax Calculator

The 4% state rate plus county and city tax

New York’s state sales tax is 4%. Every county adds its own rate, and some cities add a separate rate in place of the county’s. In the Metropolitan Commuter Transportation District (MCTD), which covers New York City and Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk and Westchester counties, an extra 0.375% funds regional transit. That is why downstate rates are higher.

New York City’s combined rate is 8.875%: the 4% state rate, 4.5% city tax and the 0.375% MCTD tax. Most upstate counties are at 8%. A few, such as Saratoga, Warren and Washington, are at 7%.

Finding the right New York rate: use the address, not the ZIP code

The Department of Taxation and Finance warns that ZIP codes do not match local tax boundaries, and that using them for sales tax leads to many errors. Its Jurisdiction and Rate Lookup Service on tax.ny.gov returns the correct rate for a street address. This matters most near city lines. The city of Oneida, for example, has a different reporting code from the rest of Madison County, and cities such as Yonkers and Rome levy their own tax.

Clothing and shoes under $110: exempt in some places, not others

Clothing and footwear sold for less than $110 per item or pair are exempt from the 4% state tax. The limit is per item, not per receipt, so five $100 shirts are all exempt. Whether the local tax also goes away depends on where you shop, because each county or city decides for itself.

According to Publication 718-C, the local exemption applies in New York City and in Chautauqua, Chenango (outside the city of Norwich), Columbia, Delaware, Dutchess, Greene, Hamilton, Monroe, Putnam and Tioga counties. There, qualifying items are completely tax-free. Everywhere else, you pay the local rate only: for example 4.75% in Erie and Suffolk, 4.625% in Nassau and 4.375% in Westchester.

Worked example: a $90 pair of jeans is tax-free in Manhattan or Rochester. In Buffalo, Erie County’s 4.75% local tax adds $4.28. A $120 jacket is over the limit and taxed at the full rate in both places: $10.65 in New York City and $10.50 in Erie County.

• Not eligible: items priced at $110 or more, costumes, rented formal wear, athletic equipment and protective gear such as motorcycle helmets.
• Jewelry, watches and similar accessories are taxable.
• Fabric, thread, buttons and zippers used to make or repair exempt clothing are covered.

Food, medicine and other exemptions

Most grocery food is exempt in New York, but candy and confections, soda and beer, and restaurant food and drink are taxable. A supermarket receipt can therefore mix taxed and untaxed lines: the bread and produce are exempt while the chocolate bar and the soda are taxed.

Drugs and medicines, medical equipment, certain medical supplies and feminine hygiene products are exempt. Many services are not taxed, so check the Department’s quick reference guide before assuming a service bill should include sales tax.

Worked example: one New York City shopping trip

New York’s exemptions mean a single receipt can carry several different rates. Here is a Manhattan trip at 8.875%: $85 sneakers, $130 boots and $6 of candy.

• Sneakers under $110: exempt from state, city and MCTD tax in New York City, $0.00.
• Boots at $110 or more: fully taxable, $11.54.
• Candy: taxable, $0.53.
• Total tax: $12.07. The same items in Erie County would cost $15.94, because Erie charges its local tax on the sneakers.

Use tax on your New York income tax return

New York residents owe use tax on taxable items or services bought outside the state, or online, without New York tax, if they then use them in New York. You report it on the sales and use tax line of Form IT-201.

For purchases under $1,000 each (not counting shipping and handling), the instructions offer a sales and use tax chart that estimates the amount from your income, so you do not need every receipt. Purchases of $1,000 or more must be reported at their actual amount and local rate. For example, a $2,400 laptop bought out of state without tax and used in New York City owes $213.00.