With a 4% statewide rate plus local taxes reaching 4.875%, New York imposes one of the highest sales tax burdens in the nation. Understanding New York’s sales tax laws allows taxpayers to optimize major purchases while ensuring businesses comply with collection and remittance requirements. This guide provides a New York sales tax calculator and an overview of New York sales tax and how it impacts consumers and companies.
New York Sales Tax Calculator
The New York sales tax calculator is an automated tool that calculates the total sales tax due for purchases made in New York. To use the calculator, you first select the county and city where the purchase is being made. New York has a statewide 4% sales tax rate but counties and some cities add additional local taxes that range from 0.375% to 4.5%. After entering the location, you then input the pre-tax purchase price. The calculator will automatically look up the combined state and local sales tax rate for that area and compute the sales tax amount.
New York Sales Tax Calculator
New York Sales Tax Calculator
New York sales tax calculator will then add the sales tax to the original purchase price to calculate the total amount due. The automated calculator makes it easy to accurately estimate sales tax for purchases across New York, eliminating the need to manually look up rates and calculate percentages. With just the location and purchase amount, the calculator does the math instantly.
Overview of New York Sales Tax
New York first enacted a 2% statewide sales and use tax in 1965 which applied to retail sales of tangible personal property. The rate increased incrementally before reaching the current level of 4% in 2005. With local taxes added on, New York residents can face combined state and local sales tax exceeding 9% in areas like New York City.
In addition to general sales tax, New York levies excise taxes on items like motor fuel, alcohol, tobacco, and utilities. The state also taxes new and used auto sales based on the full purchase price.
Countywide Sales Tax Rates in New York
New York City (5 boroughs): 8.875% Combined state and local tax: 4% + 4.5% (NYC local tax)
Albany County: 8% Combined state and county tax: 4% + 4% (Albany county tax)
Allegany County: 8% Combined state and county tax: 4% + 4% (Allegany county tax)
Bronx County: 8.875% Combined state, city, and county tax: 4% + 4.5% (NYC tax)
Broome County: 8% Combined state and county tax: 4% + 4% (Broome county tax)
Cattaraugus County: 8% Combined state and county tax: 4% + 4% (Cattaraugus county tax)
Cayuga County: 8% Combined state and county tax: 4% + 4% (Cayuga county tax)
Chautauqua County: 8% Combined state and county tax: 4% + 4% (Chautauqua county tax)
Chemung County: 8% Combined state and county tax: 4% + 4% (Chemung county tax)
Chenango County: 8% Combined state and county tax: 4% + 4% (Chenango county tax)
Clinton County: 8% Combined state and county tax: 4% + 4% (Clinton county tax)
Columbia County: 8% Combined state and county tax: 4% + 4% (Columbia county tax)
Cortland County: 8% Combined state and county tax: 4% + 4% (Cortland county tax)
Delaware County: 8% Combined state and county tax: 4% + 4% (Delaware county tax)
Dutchess County: 8% Combined state and county tax: 4% + 4% (Dutchess county tax)
Erie County: 8.75% Combined state, county, and city tax: 4% + 4% (Erie county tax) + 0.75% (Buffalo city tax)
Essex County: 8% Combined state and county tax: 4% + 4% (Essex county tax)
Franklin County: 8% Combined state and county tax: 4% + 4% (Franklin county tax)
Fulton County: 8% Combined state and county tax: 4% + 4% (Fulton county tax)
Genesee County: 8% Combined state and county tax: 4% + 4% (Genesee county tax)
Greene County: 8% Combined state and county tax: 4% + 4% (Greene county tax)
Hamilton County: 8% Combined state and county tax: 4% + 4% (Hamilton county tax)
Herkimer County: 8% Combined state and county tax: 4% + 4% (Herkimer county tax)
Jefferson County: 8% Combined state and county tax: 4% + 4% (Jefferson county tax)
Kings County: 8.875% Combined state, city, and county tax: 4% + 4.5% (NYC tax)
Lewis County: 8% Combined state and county tax: 4% + 4% (Lewis county tax)
Livingston County: 8% Combined state and county tax: 4% + 4% (Livingston county tax)
Madison County: 8% Combined state and county tax: 4% + 4% (Madison county tax)
Monroe County: 8% Combined state and county tax: 4% + 4% (Monroe county tax)
Montgomery County: 8% Combined state and county tax: 4% + 4% (Montgomery county tax)
Nassau County: 8.625% Combined state, county, and city tax: 4% + 4.25% (Nassau county tax) + 0.375% (Glen Cove city tax)
New York County: 8.875% Combined state, city, and county tax: 4% + 4.5% (NYC tax)
Niagara County: 8% Combined state and county tax: 4% + 4% (Niagara county tax)
Oneida County: 8% Combined state and county tax: 4% + 4% (Oneida county tax)
Onondaga County: 8% Combined state and county tax: 4% + 4% (Onondaga county tax)
Ontario County: 8% Combined state and county tax: 4% + 4% (Ontario county tax)
Orange County: 8.375% Combined state, county, and city tax: 4% + 3.75% (Orange county tax) + 0.375% (Port Jervis city tax)
Orleans County: 8% Combined state and county tax: 4% + 4% (Orleans county tax)
Oswego County: 8% Combined state and county tax: 4% + 4% (Oswego county tax)
Otsego County: 8% Combined state and county tax: 4% + 4% (Otsego county tax)
Putnam County: 8% Combined state and county tax: 4% + 4% (Putnam county tax)
Queens County: 8.875% Combined state, city, and county tax: 4% + 4.5% (NYC tax)
Rensselaer County: 8% Combined state and county tax: 4% + 4% (Rensselaer county tax)
Richmond County: 8.875% Combined state, city, and county tax: 4% + 4.5% (NYC tax)
Rockland County: 8.375% Combined state, county, and city tax: 4% + 3.75% (Rockland county tax) + 0.375% (Suffern city tax)
St. Lawrence County: 8% Combined state and county tax: 4% + 4% (St. Lawrence county tax)
Saratoga County: 8% Combined state and county tax: 4% + 4% (Saratoga county tax)
Schenectady County: 8% Combined state and county tax: 4% + 4% (Schenectady county tax)
Schoharie County: 8% Combined state and county tax: 4% + 4% (Schoharie county tax)
Schuyler County: 8% Combined state and county tax: 4% + 4% (Schuyler county tax)
Seneca County: 8% Combined state and county tax: 4% + 4% (Seneca county tax)
Steuben County: 8% Combined state and county tax: 4% + 4% (Steuben county tax)
Suffolk County: 8.625% Combined state, county, and city tax: 4% + 4.25% (Suffolk county tax) + 0.375% (Bay Shore, Northport Village city tax)
Sullivan County: 8% Combined state and county tax: 4% + 4% (Sullivan county tax)
Tioga County: 8% Combined state and county tax: 4% + 4% (Tioga county tax)
Tompkins County: 8% Combined state and county tax: 4% + 4% (Tompkins county tax)
Ulster County: 8% Combined state and county tax: 4% + 4% (Ulster county tax)
Warren County: 8% Combined state and county tax: 4% + 4% (Warren county tax)
Washington County: 8% Combined state and county tax: 4% + 4% (Washington county tax)
Wayne County: 8% Combined state and county tax: 4% + 4% (Wayne county tax)
Westchester County: 8.375% Combined state, county, and city tax: 4% + 3.75% (Westchester county tax) + 0.375% (Yonkers city tax)
Wyoming County: 8% Combined state and county tax: 4% + 4% (Wyoming county tax)
Yates County: 8% Combined state and county tax: 4% + 4% (Yates county tax)
What Transactions are Taxable in New York?
New York levies its 4% state sales tax plus local rates on sales of most tangible goods. This includes common purchases like:
- Clothing and footwear
- Furniture and appliances
- Electronics and computers
- Home goods
- Toys and hobby items
- Prepared meals
- Alcohol and tobacco
- Gasoline and automobiles
- Digital products including media downloads and streaming
New York also taxes various services including hotel occupancy, entertainment admissions, and telecommunications bills. But most professional services remain exempt.
Exemptions to New York Sales Tax
While extensive, New York does exempt select goods and services from sales tax:
- Food and groceries – Most food for home consumption is exempt, though prepared meals are taxable.
- Medical supplies – Prescription and over-the-counter medications are exempt along with medical equipment.
- Manufacturing materials – Goods used directly in production or packaging are exempt.
- Farm supplies and equipment
- School textbooks
- Nonprofits – Qualified organizations can obtain Certificates of Exemption to purchase goods and services tax-free.
Understanding New York’s exemptions allows taxpayers to avoid overpaying sales tax.
Who Collects and Remits New York Sales Tax?
In New York, the obligation to properly collect, report, and remit sales tax falls on retailers and sellers making taxable transactions. Consumers then pay this tax at the point of sale.
Both in-state and remote sellers shipping taxable goods into New York must register for sales tax permits once they exceed the state’s economic nexus thresholds. For remote sellers, this means exceeding $500,000 in sales or making 100 or more separate sales transactions delivered into New York per year.
Marketplaces like Amazon must collect New York sales tax on behalf of third-party sellers who exceed New York’s sales thresholds through the marketplace.
How New York Uses Sales Tax Revenue
In fiscal year 2021, New York collected over $9 billion in state sales tax plus billions more in local sales taxes. Sales tax is New York’s largest source of tax revenue. These funds support public services like:
- Education – K-12 schools, public universities, and financial aid.
- Healthcare – Medicaid, public health programs, and mental health services.
- Transportation – Highway maintenance, mass transit, motor vehicle administration.
- Public safety – State police and corrections.
- Local governments – Tax sharing to fund community programs and infrastructure.
- General operations – State facilities, payrolls, retirement benefits.
Without sales tax revenue, New York would struggle to provide these services that residents rely on.
Recent and Possible Future Changes to New York Sales Taxes
Like most states, New York frequently adjusts its sales tax policies and rates. Recent changes include:
- Online sales tax expansion – New York adopted economic nexus rules in 2019 following the Supreme Court’s Wayfair decision, requiring more remote sellers to collect.
- Clothing tax holiday – New York provides a brief sales tax holiday in late August for clothing and footwear under $110 per item.
- Digital media tax – In 2019 New York began taxing digital music, books, movies, and streaming services.
- Opioid tax – A 2 cent per milligram tax on active opioid ingredients in prescription painkillers took effect in 2018.
Future changes may include broadening the sales tax base to more services and imposing steeper rate hikes to increase revenue.
Sales Tax Compliance Tips for New York Businesses
Businesses making taxable sales into New York must obtain certificates and adhere to New York’s collection and remittance regulations including:
- Obtain a Certificate of Authority – Register for a sales tax permit after exceeding New York’s economic nexus thresholds. Apply online via the Online Permit Assistance and Licensing System.
- Integrate sales tax software – Solutions like AvaTax simplify rate calculations, timely filing, and payments.
- Charge all tax rates accurately – Ensure your POS system charges the combined state and local rates based on each customer’s delivery jurisdiction within New York.
- Collect tax on online and mail order sales – Charge New York tax on any orders shipped to New York addresses.
- File returns on time – New York sales tax returns are due the 20th of the following month. Late filings incur penalties.
- Keep detailed records – Retain resale certificates, invoices, and other documents to validate your tax charges and exemptions.
Following New York’s rules helps avoid penalties and other sales tax problems down the road. Consider outsourcing to a sales tax expert if struggling to manage internally.
Conclusion
With combined state and local rates approaching 10%, New York imposes the heaviest retail sales tax burden in the U.S. Careful planning around exemptions provides some relief for taxpayers. Meanwhile, in-state and remote sellers must closely follow New York’s economic nexus rules and complexities to smoothly collect and remit sales tax at scale. As e-commerce grows and tax policies evolve, managing New York sales tax obligations will likely continue posing challenges in 2023 for both Empire State residents and businesses.
