Sales tax
New York City Sales Tax Rate in 2026: The 8.875% Breakdown, County Rates and How to Collect It
New York City sales tax rate 2026: the 8.875% split, county rates across NY State, the under-$110 clothing exemption and how to register and file.
Edited by Sumeet YadavFounder & editor, MSMETOOLS · fact-checked against official sources
Contents (10)
- 1. How the New York City sales tax rate breaks down
- 2. New York sales tax rates by county (2026)
- 3. The clothing and footwear exemption under $110
- 4. Services taxed only in New York City
- 5. Worked examples in dollars
- 6. Who needs a New York Certificate of Authority
- 7. Filing frequency, due dates and penalties
- 8. What is exempt and what is taxable
- 9. Common New York sales tax mistakes and how to fix them
- 10. What to do next
Whether you run a bodega in the Bronx, sell sneakers online to customers in Brooklyn or are opening a salon in Manhattan, you need to know exactly what New York City sales tax to charge and why. This guide breaks the city rate into its three parts, lists the rate for every major county in New York State, explains the clothing exemption that trips up so many retailers, and walks through registering for a Certificate of Authority and filing returns. Rates were checked against the Tax Department's current Publication 718 in October 2026.
Quick answer
The sales tax rate in New York City is 8.875% in all five boroughs: 4% state tax, 4.5% city tax and the 0.375% Metropolitan Commuter Transportation District tax. Outside the city, combined rates run from 7% to 8.875%.
Clothing and shoes under $110 per item are fully exempt in NYC
Haircuts, manicures, massages and gym fees are taxed at 4.5% in NYC only
Register free for a Certificate of Authority at least 20 days before your first sale
Quarterly returns are due June 20, September 20, December 20 and March 20
Remote sellers register after $500,000 and 100 sales into NY in four quarters
How the New York City sales tax rate breaks down
New York State charges a 4% sales and use tax on retail sales of tangible goods and a list of specific services. Counties and certain cities add their own local rate, and the state adds a 0.375% surcharge inside the Metropolitan Commuter Transportation District to help fund the MTA's commuter rail and transit network. The Tax Department collects all of it on one return and distributes the local share.
In New York City the three layers add up to 8.875%. The 4.5% city rate is the largest local rate in the state, and the city sits inside the MCTD, so it also pays the 0.375% surcharge. The city is made up of five counties that most people know by their borough names: New York County (Manhattan), Kings (Brooklyn), Queens, Bronx and Richmond (Staten Island). On returns, all five use the single New York City reporting code, 8081, rather than separate county codes.
The rate is the same in every borough. A coffee grinder bought in Midtown costs the same tax as one bought on Staten Island. Where you do see different numbers in the city, it is because a separate tax applies to that kind of transaction, such as hotel occupancy taxes, the city's parking tax or the city-only tax on personal services described below.
New York is a destination state. The Tax Department's rules say the point of delivery, or the place where the buyer takes possession, decides the rate. If a Long Island furniture store delivers a sofa to an apartment in Queens, it charges the New York City rate, not Nassau's. Goods delivered to a customer outside New York State are exempt.
New York City sales tax at a glance
8.875%
Combined NYC rate
All five boroughs
4%
New York State rate
4.5%
New York City local rate
0.375%
MCTD surcharge
NYC and 7 nearby counties
New York sales tax rates by county (2026)
The table shows the combined state and local rate for New York City and the counties and cities where most businesses operate, from Publication 718. The Tax Department confirms this edition, effective March 1, 2025, is still the current rate publication. Most of upstate New York charges 8%, made up of the 4% state rate and a 4% county rate.
| Jurisdiction | Combined rate | Includes MCTD? |
|---|---|---|
| New York City (all five boroughs) | 8.875% | Yes |
| Yonkers (city) | 8.875% | Yes |
| Westchester County (rest, incl. White Plains, New Rochelle, Mount Vernon) | 8.375% | Yes |
| Nassau County | 8.625% | Yes |
| Suffolk County | 8.75% | Yes |
| Rockland County | 8.375% | Yes |
| Putnam County | 8.375% | Yes |
| Dutchess County | 8.125% | Yes |
| Orange County | 8.125% | Yes |
| Erie County (Buffalo) | 8.75% | No |
| Oneida County (incl. Utica and Rome) | 8.75% | No |
| Allegany County | 8.5% | No |
| Herkimer County | 8.25% | No |
| Monroe County (Rochester) | 8% | No |
| Onondaga County (Syracuse) | 8% | No |
| Albany County | 8% | No |
| Ontario County | 7.5% | No |
| Saratoga County (incl. Saratoga Springs) | 7% | No |
| New York State only (no local tax) | 4% | — |
Seven counties outside the city also pay the MCTD surcharge: Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk and Westchester. That is why the downstate suburbs sit between 8.125% and 8.875% while most upstate counties sit at 8%. Warren and Washington counties join Saratoga at the bottom, at 7%.
Use reporting codes, not ZIP codes, to decide the rate. The Tax Department warns that postal zones often cross county and city lines. Its online Jurisdiction and Rate Lookup service returns the correct rate and code for a street address, which matters most for businesses delivering into Westchester, where Yonkers charges more than the surrounding county.
The clothing and footwear exemption under $110
New York exempts clothing and footwear sold for less than $110 per item or pair from the 4% state tax. Each county and city decides whether to exempt it from local tax too. New York City does, and so do Chautauqua, Chenango (outside Norwich), Columbia, Delaware, Dutchess, Greene, Hamilton, Monroe, Putnam and Tioga counties. In those places, qualifying clothing is completely tax-free, including the MCTD surcharge.
Everywhere else, the state tax drops off but the local tax stays. Publication 718-C lists the local rate that still applies. A $60 pair of jeans bought in Nassau County carries 4.625% local and MCTD tax, while the same jeans in Erie County carry 4.75%. Localities can only switch their choice on March 1 of a year, so the list changes rarely.
The test is per item, not per receipt. A shopper in Brooklyn who buys two shirts at $45, a dress at $95 and a pair of shoes at $105 pays no tax at all, even though the total is $290. If the shoes cost $110 instead, they are taxed in full: $9.76 at 8.875%. There is no partial exemption on the first $110.
The exemption covers ordinary clothing and footwear worn by people, including coats, hats, underwear, swimwear, athletic clothing and cleated or ballet shoes, plus fabric, thread, buttons and zippers used to make or repair exempt clothing. Costumes, rented formal wear such as tuxedos, jewelry, watches, sports equipment such as helmets, pads and skates, and protective safety gear stay taxable at any price.
Services taxed only in New York City
New York City taxes several personal services that are exempt everywhere else in the state. Under Tax Bulletin ST-575, haircuts, coloring, blow-drying and other beautician and barbering services, hair removal such as waxing and electrolysis, manicures and pedicures, massages, tanning, tattooing and permanent make-up (unless done by a licensed medical professional), and memberships at gyms, weight-control and health salons are all taxed at the 4.5% city rate only. The state 4% and the MCTD surcharge do not apply to these services.
Products sold alongside them are taxed normally. A Harlem barbershop charges 4.5% on a $40 haircut ($1.80) but 8.875% on a $20 bottle of styling gel ($1.78). Dandruff shampoos, hair-regrowth treatments and sunscreen are exempt products. A massage given by a physician, physiotherapist or chiropractor for medical reasons is not taxable.
These businesses must register for a Certificate of Authority and report the city-only sales separately on their returns, using the line for New York City local tax. A salon that moves from Hoboken or Yonkers into Manhattan often misses this because the same services were never taxed at its old location.
Worked examples in dollars
These examples use the rates current in October 2026.
A Queens electronics shop sells a $400 laptop and a $30 case. Both are taxable at 8.875%, so the tax is $38.16 and the customer pays $468.16. The same purchase in Saratoga Springs at 7% would carry $30.10 of tax.
A Westchester caterer based in White Plains delivers a $2,000 order of prepared food to an office in Yonkers. The delivery address decides the rate, so it charges Yonkers' 8.875%, which is $177.50, rather than White Plains' 8.375%, which would be $167.50.
A Brooklyn boutique sells a $95 sweater and a $140 jacket to the same customer. The sweater is exempt because it is under $110. The jacket is taxed at 8.875%: $12.43. Selling the same two items in Albany County, which taxes clothing locally at 4%, the sweater would carry $3.80 and the jacket the full 8%, $11.20.
Try it — New York City sales tax on a $1,000 sale
For New York City, enter 4.875% as the local rate: the 4.5% city tax plus the 0.375% MCTD surcharge. For most upstate counties enter 4%.
Who needs a New York Certificate of Authority
You must register with the Tax Department and hold a Certificate of Authority before making taxable sales if you have a place of business in New York, such as a store, office, warehouse or a home you sell from, and sell taxable goods or services there. You also need one if you sell through employees, contractors or sales reps operating in the state, if you make taxable sales at craft fairs, flea markets or trade shows, or if you sell taxable services such as the NYC personal services above.
Out-of-state sellers with no physical presence must register when, in the immediately preceding four sales tax quarters, their gross receipts from goods delivered into New York exceed $500,000 and they made more than 100 sales sales into the state. Both tests must be met, which differs from California, Florida and many other states that dropped the transaction count. Marketplaces such as Amazon and Etsy collect tax on the sales they facilitate, but a marketplace seller who meets the registration rules in its own right must still register and file.
The certificate is free. You apply online through New York Business Express at least 20 days before you start, and the Tax Department mails the certificate once approved. You may not legally make taxable sales until it arrives, and it must be displayed at your place of business. A business with several locations needs a certificate for each one. If you will sell for no more than two consecutive sales tax quarters in a 12-month period, such as a holiday pop-up, you can ask for a temporary certificate with fixed start and end dates. Show and event vendors cannot use temporary certificates and must hold a regular one, even if they sell only occasionally.
How to register for New York sales tax
- 1
Set up your business entity and EIN
How to get an EINForm your LLC or corporation with the New York Department of State if you want one, and get a free EIN from the IRS. Sole proprietors can register with a Social Security number.
- 2
Apply through New York Business Express
Create an NY.gov business account and complete the sales tax registration. You will list owners, locations, start date and the goods or services you sell.
Tip: Apply at least 20 days before opening. There is no state fee.
New York Business Express - 3
Wait for your Certificate of Authority
The Tax Department mails the certificate if approved. Do not make taxable sales until you have it.
- 4
Display it and set your rates
Post the certificate at each location. Set the rate for each place you sell from or deliver to, and mark clothing under $110 as exempt where the locality allows.
- 5
Create a Sales Tax Web File account
Most vendors must web file. Your first return is quarterly unless the Department tells you otherwise.
Filing frequency, due dates and penalties
New York's sales tax quarters do not follow the calendar. They run March 1 to May 31, June 1 to August 31, September 1 to November 30, and December 1 to the end of February. Quarterly returns on Form ST-100 are due 20 days after each quarter ends, so the due dates are June 20, September 20, December 20 and March 20. Most new vendors start as quarterly filers.
If your total tax due over a year is $3,000 or less, the Tax Department can switch you to an annual return, Form ST-101, covering March through February and due March 20. If your taxable receipts and purchases reach $300,000 in a quarter, you move to part-quarterly filing, with a monthly return for the first two months of each quarter and a quarterly return for the third. Large vendors, generally those with more than $500,000 of annual sales and use tax, must join PrompTax, which requires accelerated electronic payments.
Every registered vendor must file by the due date even with no sales. A late return with no tax due still costs $50. When tax is due, filing or paying late costs 10% of the tax for the first month plus 1% a month, up to 30% (minimum $50), plus interest. Operating without a Certificate of Authority carries its own penalty of up to $500 for the first day and $200 for each day after, capped at $10,000.
New York sales tax calendar
Mar 1
Sales tax year and first quarter begin; localities can change clothing exemption choices
Mar 20
Annual returns (ST-101) and December–February quarterly returns due
Jun 20
March–May quarterly return due
Sep 20
June–August quarterly return due
Dec 20
September–November quarterly return due
What is exempt and what is taxable
New York taxes all retail sales of tangible goods unless an exemption applies, plus a defined list of services. The exemptions small businesses meet most often are grocery food for home consumption, prescription and non-prescription drugs, clothing and footwear under $110, and goods bought for resale. Restaurant meals, prepared food, candy, soft drinks and alcohol are taxable, and a food business that mixes grocery and prepared items needs to code each product correctly.
Taxable services across the state include installing, maintaining and repairing tangible goods, storage, maintaining and repairing real property (including commercial cleaning), certain parking and garaging, interior decorating and design, protective and detective services, telephone answering services and certain information services. Professional services such as legal and accounting work, and most medical services, are not taxable. Interior designers are the professional group most often surprised, because New York is one of the few states that taxes their fees.
When you buy goods to resell, give your supplier a completed Form ST-120, Resale Certificate, instead of paying tax. You must hold a valid Certificate of Authority to issue one. Suppliers should keep the certificate on file and can verify your number with the Tax Department. If you later use resale stock yourself, such as a hardware store taking paint for its own walls, you owe use tax on it. Businesses that buy equipment from out-of-state sellers who did not charge New York tax also owe use tax and report it on their regular sales tax return.
New York sales tax setup checklist
0/6Common New York sales tax mistakes and how to fix them
The first is charging 8.875% on every clothing item. Over-collected tax belongs to the state or the customer, never to you, and repeated overcharging invites complaints and audits. Set up your point of sale so items under $110 are exempt in New York City, and partly taxable elsewhere at the local rate from Publication 718-C.
The second is using the store's rate for deliveries. New York is a destination state, so an online seller in Rochester shipping to Manhattan must charge 8.875%, not Monroe County's 8%. Store the delivery jurisdiction code on each order so your return splits receipts correctly.
The third is ignoring the NYC-only service tax. Salons, barbershops, nail studios, gyms and massage spas in the five boroughs owe 4.5% on their services and must register even if they sell no products.
The fourth is mixing up the sales tax quarter. A business that files "Q1" for January to March will be wrong on every return. Use the March–May structure from the start.
If you find you should have been collecting tax and were not, the Tax Department's Voluntary Disclosure and Compliance Program lets you come forward, pay the tax and interest, and usually avoid penalties, as long as you apply before the Department contacts you.
Official New York links
- Publication 718 — rates by jurisdictionCurrent combined rates and reporting codes
- Publication 718-C — clothing and footwear rates
- Sales tax rates overviewState rate, MCTD and destination rule
- How to register (TB-ST-360)
- Filing requirements (TB-ST-275)
- NYC personal services (TB-ST-575)
- New York Business ExpressApply for a Certificate of Authority
What to do next
Confirm the rate for each address you sell from or deliver to, register for your free Certificate of Authority at least 20 days before opening, and put the four quarterly due dates in your calendar. If you have not formed the business yet, read how to form an LLC and our guide to business licenses. Selling across states? Compare with the California sales tax guide and Florida sales tax guide. Check any total with the sales tax calculator and bill it with the free invoice generator.
This is general information, not legal or tax advice — confirm on the official source or with a professional.
Frequently asked questions
The combined rate is 8.875% in all five boroughs: Manhattan, Brooklyn, Queens, the Bronx and Staten Island. It is made up of the 4% New York State rate, the 4.5% New York City local rate and the 0.375% Metropolitan Commuter Transportation District tax. The rate is the same in every borough.
Clothing and footwear priced under $110 per item or pair are fully exempt in New York City, from state, city and MCTD tax. Items at $110 or more are taxed at 8.875% on the full price. Costumes, rented formal wear, jewelry, watches, athletic equipment and protective gear are taxable whatever they cost.
No. The general sales tax rate is 8.875% in all five boroughs. Differences come from separate taxes on particular things, such as the extra New York City tax on parking and garaging in Manhattan and the hotel occupancy taxes, not from the ordinary sales tax on goods.
It is free. You apply through New York Business Express at least 20 days before you start making taxable sales, and the Tax Department mails the certificate if approved. Operating without one can cost up to $500 for the first day and $200 for each day after, to a maximum of $10,000.
Quarterly returns are due 20 days after each sales tax quarter ends: June 20, September 20, December 20 and March 20, because New York's quarters run March–May, June–August, September–November and December–February. Annual filers, who owe $3,000 or less a year, file by March 20. You must file even when you made no sales.
The lowest combined rate is 7%, in Saratoga, Warren and Washington counties, including Saratoga Springs and Glens Falls. Most other counties charge 8%. The highest is 8.875%, in New York City and the City of Yonkers.
Sources & verification
Figures on this page were checked against the sources below when it was last reviewed on 8 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify
- 1.Publication 718, New York State Sales and Use Tax Rates by Jurisdiction (effective March 1, 2025) — New York State Department of Taxation and Finance · accessed 8 October 2026
- 2.Sales tax rates by local taxing jurisdiction for current periods — New York State Department of Taxation and Finance · accessed 8 October 2026
- 3.Sales tax rates — New York State Department of Taxation and Finance · accessed 8 October 2026
- 4.Publication 718-C, Sales and Use Tax Rates on Clothing and Footwear — New York State Department of Taxation and Finance · accessed 8 October 2026
- 5.Clothing and Footwear Exemption (TB-ST-122) — New York State Department of Taxation and Finance · accessed 8 October 2026
- 6.Do I Need to Register for Sales Tax? (TB-ST-175) — New York State Department of Taxation and Finance · accessed 8 October 2026
- 7.How to Register for New York State Sales Tax (TB-ST-360) — New York State Department of Taxation and Finance · accessed 8 October 2026
- 8.Filing Requirements for Sales and Use Tax Returns (TB-ST-275) — New York State Department of Taxation and Finance · accessed 8 October 2026
- 9.Quick Reference Guide for Taxable and Exempt Property and Services (TB-ST-740) — New York State Department of Taxation and Finance · accessed 8 October 2026
- 10.Sales and Use Tax Penalties (TB-ST-805) — New York State Department of Taxation and Finance · accessed 8 October 2026
- 11.Miscellaneous Personal Services and Related Sales in New York City (TB-ST-575) — New York State Department of Taxation and Finance · accessed 8 October 2026
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