Minimum Sales Rate Tax for 2024
| 4% | Column content | Column content | Column content | Column content | |
| 4.875% | Column content | Column content | Column content | Column content | |
| 0% | Column content | Column content | Column content | Column content | |
| Column content | Column content | Column content | Column content | ||
| Column content | Column content | Column content | Column content | ||
| Column content | Column content | Column content | Column content | ||
| Column content | Column content | Column content | Column content | ||
| Column content | Column content | Column content | Column content | ||
| Column content | Column content | Column content | Column content | ||
| Rtd Greater Denver | Column content | Column content | Column content | Column content | |
| Scientific & Cultural Fac.(cd) | Column content | Column content | Column content | Column content | |
| Regional Transport Authority | Column content | Column content | Column content | Column content | |
| Minimum combined sales tax rate value | 8.875% | Column content | Column content | Column content | Column content |
| Special tax | Column content | Column content | Column content | Column content | |
| Economic sales nexus threshold | $500,000 | Column content | Column content | Column content | Column content |
| Transactions threshold | 100 | Column content | Column content | Column content | Column content |
| Sales tax return filing due date | Due on the 20th of the month following the reporting | Column content | Column content | Column content | Column content |
The base state sales tax rate in New York State is 4%, but since the city-specific tax rate is 4.875% and the County tax rate is 0%, the minimum sales tax rate for New York City is 8.875%.
How to calculate your sales tax rate
Use our online sales tax calculator to determine the combined state and local sales tax rate for each location where you have a physical or economic nexus. Just enter your state and ZIP code to get your sales tax rate.
Looking for help calculating your sales tax? Contact us today to book a free consultation!
What is nexus?
In New York City, businesses must understand “nexus” to determine their tax obligations. Nexus refers to the connection that requires a business to collect sales tax in a state. This concept became even more important after the U.S. Supreme Court’s decision in South Dakota v. Wayfair, Inc., which allowed states to require sales tax collection based on economic activity rather than just a physical presence.
Specific sales tax rules for New York City
In addition to the sales tax, New York City imposes a separate hotel occupancy tax, which applies to the rental of hotel rooms. The tax rate is 5.875% of the room rate. Additionally, there’s a flat fee of $2 per day for rooms costing more than $40 per night.
New York City also has a “luxury tax” on items like high-end jewelry, furs, and certain other expensive goods, although this is less commonly encountered. The luxury tax rate can vary depending on the type of item and its price. It is an additional tax on top of the regular sales tax.
Services
Generally not taxable in New York City unless directly related to the sale of tangible personal property, in which case the service charge is taxable.
Goods
In general most goods such as appliances, cars, furniture, sporting goods, and electronics, are subject to sales tax.
Clothing
Clothing and footwear under $110 per item are exempt from state sales tax. Items priced at $110 or more are fully taxable.
Electronics
Taxable.
SaaS
Generally taxable.
Digital Products
Taxable when sold in their physical form, exempt from sales tax when delivered electronically.
Software
Prewritten software delivered electronically is taxable as tangible personal property.
Freight/Shipping
When a taxable product or service is sold, any shipping or delivery charges added by the seller to the bill are included in the total amount subject to sales tax.
Speak to a US sales tax expert today
Schedule a call today
