# New York Sales Tax Guide (2026)

Canonical: https://trykintsugi.com/sales-tax-guides/usa/new-york
Published: June 17, 2026

New York's 4% state rate reaches 8.875% in New York City. Its nexus rule is unusual — it takes both $500,000 in sales and 100+ transactions.

- **SaaS:** Taxable
- **Clothing:** Partial
- **Groceries:** Exempt
- **Digital Goods:** Exempt

- **Effective date::** 
- **Scheduled change::** 

## Key Takeaways

New York's state sales tax rate is 4%, plus local and Metropolitan Commuter Transportation District taxes that bring the combined rate to 8.875% in New York City [1]. You have economic nexus only when you exceed both $500,000 in receipts and more than 100 sales delivered into New York over the preceding four sales-tax quarters, an "and" test [2]. Prewritten software including SaaS is taxable, while digital products such as e-books are not; clothing and footwear under $110 per item are exempt from the state rate and food for home consumption is exempt [3][4][5]. Protest a notice within 90 days through the Division of Tax Appeals [7].

## Taxability Snapshot

## Sales Tax Rates

New York's state sales tax rate is 4%, but county and city taxes plus the Metropolitan Commuter Transportation District (MCTD) surcharge push combined rates to 8.875% in New York City. Most of the state lands between 7% and 8.875%.

| Component | Rate | Scope |
| --- | --- | --- |
| State | 4.00% | Statewide |
| Local (county/city) | up to ~4.875% | Varies by location |
| MCTD surcharge | 0.375% | NYC + commuter counties |
| Combined | 7.00%–8.875% | Varies by location |

Combined rates in major New York cities (2026):

| City | Combined rate |
| --- | --- |
| New York City | 8.875% |
| Yonkers | 8.875% |
| Rochester | 8.00% |
| Syracuse | 8.00% |
| Albany | 8.00% |

New York is destination-based — apply the rate where the buyer takes delivery. To find the combined rate for a specific address, use our [US sales tax calculator](/us-sales-tax-calculator).

## Registration or Nexus Threshold

New York has economic nexus only when you exceed both $500,000 in receipts from sales of tangible personal property delivered into the state and more than 100 sales transactions, measured over the preceding four sales-tax quarters. Because New York uses an "and" test, crossing just one threshold does not create nexus. Physical presence creates nexus immediately.

## Marketplace Facilitator Law

New York has required a marketplace provider without physical presence in the state to register and collect state and local sales tax once, in the preceding four sales-tax quarters, it made or facilitated more than $500,000 of tangible personal property sales delivered in New York and more than 100 such sales — a threshold that replaced a prior $300,000 figure retroactive to June 1, 2019. A registered provider must collect tax on taxable facilitated sales delivered to a New York address regardless of whether the marketplace seller itself would otherwise have to register. A marketplace seller that receives the provider's Form ST-150, Marketplace Provider Certificate of Collection (or is covered by an equivalent public agreement), is relieved of collecting sales tax on those facilitated sales and reports them as nontaxable.[9]

## Filing Frequency & Deadlines

New York assigns annual, quarterly, or part-quarterly (monthly) filing based on taxable receipts. Most businesses file quarterly. Returns are due 20 days after the end of the reporting period, so the quarter ending May 31 is due June 20. High-volume vendors remit through PrompTax on an accelerated schedule.

#### Exemptions

New York exempts most food for home consumption, prescription and over-the-counter medicines, and many medical devices. Clothing and footwear under $110 per item are exempt from the state's 4% tax, and some localities exempt them too. Prewritten software, including most SaaS, is taxable in New York.

## Resale & Exemption Certificates

New York buyers with a valid Certificate of Authority give the seller Form ST-120 (Resale Certificate) to buy goods or services for resale without tax, within 90 days of the purchase [6]. It has no fixed expiration and stays valid while the buyer's registration remains active [6].

## Penalties

Late filing or payment penalties start at 10% of the tax due for the first month and rise with time, with a $50 minimum even on a zero return. Interest accrues separately from the due date until the balance is paid.

## Audits & Appeals

You can protest a Notice of Deficiency within 90 days by petitioning the Division of Tax Appeals or requesting a BCMS conciliation conference [7]. After a conciliation order, you have another 90 days to petition the Division of Tax Appeals [7].

## Sources

- [1] [New York DTF — Sales Tax Rates (4% state, MCTD, NYC 8.875%)](https://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/sales_tax_rates_additional_sales_taxes_and_fees.htm)

- [2] [New York DTF — Sales Tax Nexus ($500,000 and 100 sales)](https://www.tax.ny.gov/pubs_and_bulls/publications/sales/nexus.htm)

- [3] [New York DTF — Computer Software (SaaS taxable)](https://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/computer_software.htm)

- [4] [New York DTF — Clothing and Footwear (under $110 exempt)](https://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/clothing_and_footwear.htm)

- [5] [New York DTF — Food Sold by Food Stores (groceries exempt)](https://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/food_sold_by_food_stores.htm)

- [6] [New York DTF — Exemption Certificates (Form ST-120)](https://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/exemption_certificates_for_sales_tax.htm)

- [7] [New York DTF — Protest and Appeals (90 days, Division of Tax Appeals)](https://www.tax.ny.gov/protest/)

- [8] [New York DTF — How to Register (Certificate of Authority)](https://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/how_to_register_for_nys_sales_tax.htm)

- [9] [New York Department of Taxation and Finance — Sales Tax Requirements for Marketplace Providers](https://www.tax.ny.gov/pubs_and_bulls/publications/sales/marketplace.htm)

Verified July 2026 against New York State Department of Taxation and Finance published guidance.

## Frequently Asked Questions

### What is the sales tax rate in New York in 2026?

New York's state rate is 4%; combined local rates reach 8.875% in New York City. Most of the state is between 7% and 8.875%.

### What is New York's economic nexus threshold?

Both more than $500,000 in sales and more than 100 transactions delivered into New York over the preceding four quarters. You must exceed both.

### Is SaaS taxable in New York?

Yes. New York treats SaaS as the sale of prewritten software, which is taxable.

### Is clothing taxed in New York?

Clothing and footwear under $110 per item are exempt from the 4% state tax, and some localities exempt them too.

### When are New York sales tax returns due?

20 days after the end of the reporting period. Most filers are quarterly; high-volume vendors use PrompTax.

### What is the penalty for late New York sales tax?

Penalties start at 10% of the tax due with a $50 minimum, even on a zero return, plus interest.

## Related Reading

- [New York City Sales Tax Exemption: A Guide for Businesses to Save More](/blog/new-york-city-sales-tax-exemption)

- [Understanding New York Food Tax: Key Changes in 2026](/blog/new-york-food-tax)

- [Everything Businesses Need to Know About New York Sales Tax Exemption](/blog/new-york-sales-tax-exemption)

## US Sales Tax Calculator