New York Sales Tax Guide 2025 (New York)
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This 2025 guide to New York City sales tax breaks down important sales tax rates, exemptions, and filing deadlines for New York businesses selling in New York City or out-of-state businesses selling to customers in New York City.
For more general info on New York sales tax, take a look at Kintsugi's easy guide: New York Sales Tax Guide 2025: Compliance, Rates, Guidelines.
New York City Sales Tax Rate (New York)
In 2025, New York City, New York, imposes a total sales tax rate of 8.88%, comprising state, city, and special district taxes. This rate is consistent across all five boroughs: Manhattan, Brooklyn, Queens, The Bronx, and Staten Island.
Note: The MCTD tax is a special district tax that funds transportation services in the metropolitan area. This combined rate applies uniformly across all ZIP codes within New York City.
| Tax Component | Rate |
|---|---|
| New York State Tax | 4.00% |
| New York City Tax | 4.50% |
| Metropolitan Commuter Transportation District (MCTD) Tax | 0.38% |
| Total Sales Tax Rate | 8.88% |
Sales Tax in New York City on Clothing
In New York City, clothing and footwear items are exempt from sales tax if priced under $110 per item. However, items costing $110 or more are subject to an 8.875% sales tax, which includes:
| Tax Type | Rate |
|---|---|
| New York State Sales Tax | 4.00% |
| New York City Sales Tax | 4.50% |
| Metropolitan Commuter Transportation Tax | 0.375% |
| Total Sales Tax | 8.875% |
| Item | Price | Tax Rate | Total Cost |
|---|---|---|---|
| Sneakers | $100 | 0% | $100 |
| Winter Coat | $150 | 8.875% | $163.31 |
| Designer Handbag (Taxable) | $300 | 8.875% | $326.63 |
If an order exceeds $110 in total but each individual item costs less than $110, the entire purchase remains sales tax-exempt in New York City. The exemption applies on a per-item basis, not per transaction.
Note: The sales tax exemption on clothing in NYC applies on a per-item basis, not per transaction.
| Item | Price Per Item | Quantity | Total Cost | Sales Tax |
|---|---|---|---|---|
| T-Shirts | $30 | 2 | $60 | $0 |
| Sneakers | $80 | 1 | $80 | $0 |
| Order Total | - | - | $140 | $0 |
Since no individual item costs $110 or more, no sales tax is applied. For more details, visit the New York State Department of Taxation and Finance website.
FAQ
Is there sales tax on clothes in New York City?
Clothing and footwear under $110 per item are exempt from New York City sales tax. Purchases over $110 are taxed at the full 8.875% rate.
To learn more about New York sales tax on clothing, take a look at Kintsugi's easy guide: What is New York Sales Tax on Clothing? A Guide for Businesses.
New York City NY Sales Tax Calculator
A retailer in New York City, New York, sells an item priced at $500. The total sales tax rate is 8.875%, comprising state, city, and special district taxes.
A customer purchasing a $500 item in New York City would pay $44.38 in sales tax, bringing the final total price to $544.38.
| Tax Type | Rate | Calculation | Tax Amount |
|---|---|---|---|
| New York State Tax | 4.00% | $500 × 4.00% | $20.00 |
| New York City Tax | 4.50% | $500 × 4.50% | $22.50 |
| Metropolitan Commuter Transportation District (MCTD) Surcharge | 0.375% | $500 × 0.375% | $1.88 |
| Total Combined Tax | 8.875% | $44.38 | |
| Final Total Price | $500 + $44.38 | $544.38 |
This combined rate applies uniformly across all five boroughs of New York City: Manhattan, Brooklyn, Queens, The Bronx, and Staten Island.
To learn more about New York sales tax exemptions, take a look at Kintsugi's easy guide: Everything Businesses Need to Know About New York Sales Tax Exemption.
FAQ
How much is the New York City NY sales tax rate?
New York City's total sales tax rate is 8.875%, comprising a 4% state tax, a 4.5% city tax, and a 0.375% Metropolitan Commuter Transportation District surcharge.
Does New York participate in the Streamlined Sales Tax (SST) initiative?
No, New York does not participate in the Streamlined Sales Tax (SST) initiative. The state has its own complex sales tax system, which directly impacts revenue, and has not adopted SST's simplification measures.
Where should I go to start a sales tax registration for my sales in New York?
Register for New York sales tax through the New York State Department of Taxation and Finance via the Online Services portal.
What is the sales tax in New York City?
New York City's total sales tax rate is 8.875%, which includes 4% state tax, 4.5% city tax, and a 0.375% Metropolitan Commuter Transportation District surcharge.
What are the physical and economic nexus thresholds in New York City?
Physical nexus means a business has a location, employees, or inventory in NYC. Economic nexus means $500,000+ sales and 100+ transactions in New York State annually.
What taxable items require collection of sales tax in NYC?
Taxable items in NYC include tangible personal property, prepared food, clothing over $110, digital products, software, hotel stays, and certain services like beauty, entertainment, and repairs.
What is the sales tax rate in New York City?
The sales tax rate in New York City is 8.875%, which includes 4% state tax, 4.5% city tax, and a 0.375% Metropolitan Commuter Transportation District surcharge.
What is a Certificate of Authority in New York City?
A Certificate of Authority in NYC — also known as a NY sales tax permit — is a permit required to collect sales tax, issued by the New York State Department of Taxation and Finance.
How do I calculate New York City sales tax?
To calculate the sales tax, multiply the purchase price by 0.08875. For example, a $100 item would incur $8.88 in sales tax, totaling $108.88.
Is there a New York City sales tax on cars?
Yes, New York City charges sales tax on car purchases at a total rate of 8.875%, which includes state (4%), city (4.5%), and MCTD (0.375%) taxes.
What is the New York City sales tax calculator?
Online calculators can assist in computing sales tax. Ensure they are updated with New York City's current rate of 8.875%.
To learn more about New York sales tax on SaaS and digital products, take a look at Kintsugi's easy guide: Is SaaS Taxable in New York? Get the Latest Info for 2025.
New York City Sales Tax Filing Steps
Who Needs to Collect Sales Tax in New York?
Sales tax collection in New York is required for businesses that meet the following criteria:
1. Physical Presence: Businesses with a store, office, warehouse, or employee in New York.
2. Economic Nexus: Out-of-state businesses exceeding $500,000 in New York.
Not sure if your business meets these criteria? Kintsugi’s Nexus Analysis Tool can help you determine your sales tax obligations.
What Is Taxable in New York?
In New York, New York, sales tax applies to:
1. Tangible personal property (e.g., electronics, clothing, furniture).
2. Certain services.
There are also exemptions for items like General Clothing, Grocery Food, Machinery, Raw Materials, Utilities & Fuel, Medical Devices, Medicines, Newspapers, Periodicals, General Occasional Sales, Parts Purchased for Use in Performing Service Under Optional Maintenance Contracts, General Trade-Ins, Supplements. Ensure you check with your state’s tax authority or consult Kintsugi for clarity.
How to File Sales Tax in New York
Here’s a step-by-step guide for filing your sales tax returns:
1. Register Your Business: Get a sales tax permit through the https://www.tax.ny.gov/bus/st/stidx.htm.
2. Collect Sales Tax: Accurately calculate sales tax on taxable transactions.
3. File and Pay: Submit sales tax returns through https://www.tax.ny.gov/bus/st/stidx.htm by the [state-specific deadline]—monthly, quarterly, or annually depending on your sales volume.
Kintsugi’s Automated Filing Service streamlines the process, ensuring accuracy and timeliness.
Common Challenges in Sales Tax Compliance
Businesses in New York often face these issues:
1. Tracking tax rate changes for city, county, and special districts.
2. Managing exemptions and resale certificates.
3. Reconciling returns for accurate filing.
Kintsugi’s AI-Driven Compliance Solution takes the guesswork out of sales tax, handling rate calculations, exemption management, and filing across all jurisdictions.
Why Choose Kintsugi for Sales Tax Compliance?
Kintsugi is more than a software solution—we’re your trusted partner in sales tax compliance. Here’s how we help:
1. Real-Time Rate Calculation across billing, payments, and e-commerce platforms.
2. Nexus Tracking to identify where you need to register and collect tax.
3. Automated Filing to save time and reduce errors.
4. Audit Support to give you peace of mind.
A direct-to-consumer brand, recovered over $200K in overpaid sales tax within their first month of switching to Kintsugi. Your business could be next.
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Find Sales Tax Information for Other Cities in New York
Looking for sales tax rates and compliance details for other cities in New York? Check out our comprehensive table of sales tax information for cities across the state in the table below
| City | Sales tax rate |
|---|---|
| Staten Island | 8.88% |
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