New York Sales Tax: 4% State Rate, Local Rates, Exemptions

New York has one of the more layered sales taxes in the country: a 4% state rate, a county or city rate on top, and in the New York City region a further 0.375% for transit. Which total you pay depends on where the goods are delivered, not where the seller is.

This guide sets out how the rate is built, the combined rates the Tax Department publishes for a sample of places, what is exempt (most food from grocery stores, medicines, clothing under $110 in many places), what is taxable that surprises people, and how use tax works on online purchases. It uses the Department's own publications, which were read on 2 November 2026. The rate table itself is dated March 1, 2025, so always confirm the current rate for an address with the Department's lookup.

How the New York Rate Is Built

The Tax Department states: "The combined sales and use tax rate equals the state rate (currently 4%) plus any local tax rate imposed by a city, county, or school district." It also says an additional 0.375% applies to taxable sales made within the Metropolitan Commuter Transportation District (MCTD), and that combined rates vary in each county and in cities that impose sales tax.

The MCTD consists of New York City and the counties of Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk and Westchester. In Publication 718 the rows marked with an asterisk include that 3/8%.

The Department describes New York's sales tax as a destination tax: the point of delivery, or the point where possession passes to the buyer, determines the rate collected. Sales delivered outside New York State are exempt.

Combined Rates for Selected Places

The Department's Publication 718, Sales and Use Tax Rates by Jurisdiction, lists every county and many cities. The version we read is effective March 1, 2025. The list below is a small sample from it; it is not a full rate table, and the Department advises using its lookup service by address and reporting codes rather than ZIP codes, because postal zones usually do not match political boundaries.

The Department's page of locality rate change notices lists a 2025 notice for Suffolk County and nothing newer on the version we read (last updated February 7, 2025). That is not proof that no rate has changed since, so check the lookup for any address that matters.

Clothing and Footwear Under $110

The Tax Department states that clothing and footwear sold for less than $110 per item or pair, and items used to make or repair it, are exempt from the New York State 4% sales and use taxes. The exemption does not apply to local taxes unless the county or city elects to provide it. It also applies to the 3/8% MCTD tax, but only in MCTD localities that have elected to provide the exemption. A county or city may change its election only effective March 1 of a year.

Publication 718-C (effective March 1, 2025) splits places into two groups. In the first, which includes Monroe County and New York City, eligible clothing under $110 is fully exempt from all state and local tax. In the second, which includes Albany, Erie, Nassau and Suffolk Counties, a local tax still applies. Costumes, rented formal wear, athletic equipment and protective devices such as motorcycle helmets are not eligible. Items at $110 or more are fully taxable.

The table is our arithmetic on the Department's published rates, not an official calculation. Actual tax on a sale is computed by the seller under the Department's rounding rules, so it can differ from the unrounded figure by a fraction of a cent.

What Is Exempt and What Is Taxable

The Department's overview says sales tax applies to tangible personal property unless specifically exempt, gas, electricity and some other utilities, certain services, food and beverages sold by restaurants, taverns and caterers, hotel and short-term rental occupancy, and certain admission charges and dues. It lists these among the exemptions: purchases for resale, sales of most food for home consumption, sales of prescription and nonprescription medicines, and most services.

• Groceries: food sold by food stores is generally exempt, but food sold heated, for consumption on the premises, or prepared by the seller and ready to be eaten is taxable. Sandwiches, carbonated beverages, candy and confectionery, and pet foods are also taxable.
• Medicines: drugs and medicines intended to diagnose, cure, treat or prevent illness are exempt, whether prescription or nonprescription. Menstrual products are exempt. Cosmetics and toiletries are taxable even if they contain some medicinal ingredients.
• Services: most are not taxed. The Department gives capital improvements to real property, medical care, education, and personal and professional services as examples of services not subject to sales tax.

Extra Taxes and Fees to Know About

The Department lists several charges on top of the regular rate, including a 12% additional tax on passenger car rentals, a 20% supplemental tax on vapor products, a $2.50 per tire waste tire fee on most new tires, and a $1.50 per unit per day fee on hotel and short-term rental occupancy in New York City. These are separate from the combined rates in the table above.

Use Tax on Online and Out-of-State Purchases

The Department says sales and use tax generally applies to products and services purchased within or outside New York that are delivered or used in the state and on which the seller does not collect sales tax. Its examples include property delivered to you in New York that you bought on the internet or by catalog without paying sales tax to the seller.

Individuals, estates and trusts may report the tax owed on personal income tax or fiduciary returns. You may also owe an additional local tax if you buy in a lower-rate county or city and bring the item to your own. The Department warns it may charge penalty and interest for failure to pay. The Department's page on this was last updated in December 2023, so check the current income tax return instructions for the exact line and method.

Official Sources

• New York State Tax Department: Find sales tax rates
• Publication 718: Sales and Use Tax Rates by Jurisdiction
• Publication 718-C: Rates on Clothing and Footwear
• Tax Bulletin ST-122: Clothing and Footwear Exemption
• Food sold by food stores
• Drugstores and pharmacies
• Products, services and transactions subject to sales tax
• Sales and use tax on my income tax return