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New York City, New York
 Sales Tax 2026

The City of New York is located in Manhattan County, New York. New York City sales tax rate is 8.875%.
The total sales tax rate in New York City comprises the New York state tax and any applicable special or district taxes. The city also imposes an additional sales tax of 4.50%. The table below provides a breakdown of the sales tax rate by jurisdiction.
New York 4.00%
Manhattan County 0.00%
New York City 4.50%
District / Special Tax 0.38%
Combined Sales Tax Rate 8.875%

New York City Sales Tax Calculator

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Sales tax amount = N/A
State 0.00%
County 0.00%
City 0.00%
District(s) 0.00%
The TaxHero sales tax calculator provides a combined sales tax rate based on a full address lookup. A complete address ensures precision since ZIP codes may cross different tax jurisdictions. Results are for reference and may need additional context for compliance. Contact us today for a demo and learn how TaxHero can support your business.

Who Needs to Collect Sales Tax in New York City, New York?+

Featuring the state’s iconic Statue of Liberty, New York City is a vibrant city full of thrilling opportunities for everyone, including ecommerce businesses.
As you begin making sales in NYC, you might ask: When should you start collecting sales tax in New York City?
 Generally, businesses in New York City are required to collect sales tax if they have a sales tax nexus in New York and sell to Manhattan County residents. This rule applies whether you are selling remotely or have a physical location within New York City.

What Creates Sales Tax Nexus in New York City, New York?+

A sales tax nexus is created based on your business’s significant presence in a state. Two types of sales tax nexus determine your business’s presence in a state: physical nexus and economic nexus.

Physical Nexus

A physical nexus is established by having a substantial physical presence or engaging in enough taxable sales activities within a state. Several factors determine a physical nexus in New York.
  • Physical Location: This means having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business.
  • Inventory in the State: This applies to situations where you store products within the state, whether it’s done via a third-party fulfillment center or 3PL (such as Amazon FBA) or an online marketplace.
  • Business Representatives: Having employees, independent contractors, agents, or other representatives operating within the state on your behalf.
  • Vehicle Sales or Deliveries: Using your vehicle to sell and deliver taxable items to New York residents at least 12 times a year establishes a physical nexus.
  • Advertisements or Solicitations: Generally, making taxable sales to New York residents through advertisements or solicitations qualifies your business for a physical nexus.
  • Affiliate Nexus or Click-through Nexus: You are considered to have a business presence in New York if you sell parallel products under a similar name as your affiliate partner in New York and pay them a commission on sales. This rule applies if your total sales in New York exceed $10,000 over the previous four quarterly periods.
  • Presence at Trade Show: Occasionally, selling taxable items at New York trade shows may trigger a physical nexus for your business. However, simply attending events or trade shows without selling any taxable items generally does not create a physical nexus.

Economic Nexus

Economic nexus is established based on two common factors. First is your business’s total sales revenue, and second is the number of transactions you’ve had within the state. In New York, the economic nexus threshold is:
  • $500,000 in gross revenue and
  • 100 transactions in the previous or current calendar year’s sales
Take note that this means you must meet both these thresholds before an economic nexus is established in New York. Thus, if you only have 100 transactions but haven’t reached the $500,000 gross revenue threshold, you still aren’t liable for sales tax obligations.
To read a comprehensive list of all sales tax rules in New York, you may read the state’s Technical Memorandum TSB-M-19(4)S.

What are Taxable and Non-Taxable Products in New York City, New York?+

Every state has different rules when it comes to the taxability of goods and services. In New York City, New York, a variety of goods are subject to sales tax, and a few are exempt. Check the table below for reference:
PRODUCT TAXABLE EXEMPT
Tangible Products
    • Jewelry
    • Furniture
    • Cosmetics
    • Electronics
    • Home Goods
    • Groceries – In general, sales of prepared, heated, and packaged food for consumption are subject to sales tax. This also includes sales of sandwiches and candies.
    • Diapers
    • Prescription Medications
    • Feminine Hygiene Products
    • Medical Devices and Supplies for Home Use
    • Some items used to make or repair clothing
    • Groceries – Food and food products sold by food stores, including dietary food, are generally exempt from sales tax. However, some food items are still subject to sales tax in New York.
    • Clothing – Clothing and footwear under $110 are exempt from New York City and the state’s sales tax. However, sales exceeding $110 are subject to sales tax.
      NOTE: This exemption applies to each item. For example, if you buy 2 shirts costing $100 each, bringing the total to $200, the entire $200-transaction is still non-taxable.
Services
  • A variety of service-based transactions are taxable in New York. Here are a few examples:
    • Cleaning Services
    • Maintenance and Repair
    • Telephone or Television Services
    • Protective and Detective Services
  • The following services are subject to the local sales tax of New York City, but are exempt from the state’s sales tax:
    • Electrolysis
    • Tanning Services
    • Massage Services
    • Beautician Services
    • Credit Rating Services
    • Manicure and Pedicure
    • Services provided by weight control and Health Salons, Gyms, Sauna Baths, and other similar facilities
  • Some services are exempt from sales tax in New York, such as:
    • Shoe Repairs
    • Printing Services
    • Laundry and Dry Cleaning
    • Veterinary Medical Services
    • Prosthetic Aid and Devices Services
    • Tractors, trailers, and semi-trailers, and related services
    • Manufacturing Services for Machinery Equipment or Utilities, including Fuel
    • Certain Residential Energy Sources and Services
    • Services for Agricultural or Commercial Horse Boarding
SaaS and Digital Products
    • SaaS is generally taxable in New York, as it is considered equivalent to tangible personal property. This also applies to certain digital goods when delivered electronically.
Shipping and Handling
  • Shipping and Handling charges in New York are non-taxable if the following conditions are met:
    • The item or service being delivered is exempt from sales tax
    • If a non-taxable item is shipped with a taxable item, the shipping and handling charges must be listed separately on the invoice based on the taxable and non-taxable items.
    • The charges must be allocated fairly between the taxable and non-taxable products in the invoice.
 

For in-depth guidance on taxabilities and exemptions on goods and services, read The Ultimate Guide to Sales Tax in New York.

How to Get a Sales Tax Permit in New York City, New York?+

Once you’ve established a sales tax nexus in New York City, New York, your next step is making sure you stay compliant by registering your business for a sales tax permit, also known as a seller’s permit or a business license in other states.
NOTE: In New York, a sales tax permit is specifically referred to as a “Certificate of Authority.”
To get a sales tax permit in New York City, follow our step-by-step guide:
  • Step 1: Prepare the following required information and documents:
    • Business Identification Information: Legal business name, physical address, mailing address 
    • Business Entity Structure (i.e., sole proprietorship, partnership, Subchapter S Corp., corporation, LLC, etc.)
    • Federal Employer Identification Number (EIN or FEIN)
    • Name, Address, SSN, Ownership Percentage, and Primary Business Duties of owners, partners, or officers
    • Before applying, use Form DTF-17.1, Business Contact, and Responsible Person Questionnaire, to obtain the information required for each responsible party, including owners, partners, or officers of the business. Retain a copy of the questionnaire for your records for each person
    • Business Activity Details: Date & State of Incorporation, start date with the state of New York City (nexus start date), Estimated Monthly Sales Tax Liability in New York City
    • Tax Preparer Information (if applicable): (address, phone number, and preparer’s federal EIN)
    • NAICS Code 
  • Step 2: Now, go to the BusinessExpress.ny.gov website and then create an account.
  • Step 3: Select “I Need a NY.GOV ID” and then click the option that says “Register Here”
  • Step 4: Follow through the prompts until your registration process is complete.
  • Step 5: After creating your profile, go back to the login page and choose “I have a NY.GOV ID,” then proceed to enter your username and password.
  • Step 6: Once logged in, select “Get Started” to begin the registration process for your New York sales tax permit.
  • Step 7: Complete the required fields and then submit your registration.
After receiving your New York sales tax permit, you must keep it displayed at all times in your business’s physical locations.
Renewal is generally not required, as your permit stays valid as long as your business exists without major changes in ownership and structure. In case you need to renew your permit, the New York Department of Taxation and Finance typically sends a notification letter to inform you.

How Do You File and Remit Sales Tax in New York City, New York?+

After registering your business in New York City, New York, your next step is filing and remitting sales tax returns on time. But before filing your sales tax returns, you must know the filing schedule assigned to you by the state.
To begin filing and remitting your sales tax returns in New York, follow our step-by-step guide:
  • Step 1: Prepare your ecommerce sales tax data (e.g., Taxes Report from Shopify)
  • Step 2: Go to the New York Sales Tax Web File Portal website and then log in using your NY.Gov account credentials.
  • Step 3: On your dashboard, click “Tax Online Services” and then locate the “Filings and Payments” section in the Account Summary page.
  • Step 4: Under the “Filings” section, click “File Return.” After that, select “Start a New Return” in the new window.
  • Step 5: Now, begin filling out the required fields and then enter all data based on your sales tax report.
  • Step 6: Finally, enter your bank information to make a payment for your return.
  • Step 7: Review all the submitted information carefully before finalizing your return, and then click “Submit.”
  • Step 8: Lastly, keep a copy of the payment and confirmation page as proof of successful submission and for recordkeeping purposes.
NOTE: In general, late filings result in penalties and fees. Always stay on schedule to avoid any unwanted fines.
Monthly and quarterly filers can claim a vendor collection credit for filing on or before the due date. Currently, the allowed discount is 5% of the amount due. However, it is capped at $200 per return period. 

New York City District and Special Tax Rates+

If you make retail sales in New York City subject to the state sales tax from a business located in a taxing district, district sales tax is generally due on your sales of tangible personal property. In case you need to identify the correct sales tax rate in New York City, you may look up the sales tax rate by address and ZIP code in our calculator.

New York City Gov Contact Information+

State: New York Department of Taxation and Finance 
 City: New York City Official 
 Contact: (518) 457-5342

Popular ZIP codes in New York City, New York+

10314 10467 11207 11208 11219 11226 11236 11368 11373 11385

Frequently Asked Questions+

1. Do tourists pay sales tax in NYC?

Yes, tourists still pay sales tax when purchasing taxable goods in New York City. The general combined sales tax rate in New York City as of 2026 is 8.875%. However, tourists can also make tax-exempt purchases when buying exempt goods such as clothing and footwear under $110.

2. Why is there no sales tax on clothes in NYC?

There is no sales tax on clothes in NYC if your purchase is under $110. Clothing and footwear worth more than $110 will be subject to sales tax. This exemption initially began as a Year-Round Sales and Use Tax Exemption in some New York cities until it was adapted into a state-wide exemption. However, localities still have the option to impose sales tax on clothes.

3. How to calculate NYC sales tax?

To calculate your New York City sales tax, you must list the price of your taxable product, including the shipping charges. After that, take New York City’s combined sales tax rate, depending on where you are selling. Then, convert the state’s combined sales tax rate into decimal format.
 Once you convert the rate into decimal format, multiply your product’s price by the decimal format. The result is your estimated sales tax for that transaction.
  • Here’s the simplified formula breakdown:
    • Price of Goods + Shipping Fee x
    • State Sales Tax Rates +
    • Local Sales Tax Rates
    • = Your Total Sales Tax
Example Scenario:
  • You’re selling a taxable product worth $50 with a shipping fee of $10. This brings your total sale price to $60.
  • The product was shipped to New York City, New York, where shipping is taxable.
    • The combined state, county, city, and other local sales tax rates in New York City, New York, is 8.875%.
  • Convert the state’s combined sales tax rate into decimal format.
    • 8.875% turned into decimal format is: 0.08875
  • Now, multiply your sale price by the decimal format of the combined sales tax rate of the city, county, and state.
    • 60 x 0.08875 is = $5.325
    • When rounded off, this amount becomes = $5.33
  • Finally, add everything to your base sales price to accurately collect sales tax from your customers.
    • [Product Price] $50 +
    • [Shipping Fee] $10 +
    • [Calculated Sales Tax] $5.33
    • TOTAL = $65.33
To simplify the calculation, you can also use TaxHero’s FREE Sales Tax Calculator.

   Having Trouble Navigating New York City, New York Sales Tax?

    Skip the hassle and let TaxHero manage your sales tax in New York City, New York.

    From tracking your nexus, registering your business, and filing your sales tax returns, we do it all for you so you can keep focusing      on growing your business.

    Discover how TaxHero can support your business and ensure you stay compliant nationwide, book a free demo today!

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