Total Range for 2025
| Base state sales tax rate | 4% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Local rate range | 0%-4.875% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Total rate range | 4%-8.875% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Economic sales nexus threshold | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | |
| Transactions threshold | N/A | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Sales tax return filing due date | 20th of following month | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
The base state sales tax rate in New York is 4%, but since the local rates range from 0-4.875% the total sales tax range is 4-8.875%.
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.
Example of using the sales tax rate in a tax calculation:
If you sell a product for $100 in a location with a combined sales tax rate of 8.875% (4% base rate + 4.875% local rate), the sales tax amount would be $8.875 (100 x 8.875%). You would collect a rounded amount of $108.88 from the customer.
Nexus: Why may you need to collect sales tax in New York?
If you’re selling goods and services in New York, to determine your obligation, you need to understand “nexus,” which ties businesses to states for tax purposes. New York has both physical nexus and economic nexus rules:
- Physical Nexus: Having a physical presence in New York, like an office, warehouse, or employees in the state, triggers this type. If you do, you likely need to collect sales tax.
- Economic Nexus: This kicks in when your sales within New York exceed a certain economic threshold. Even without a physical presence, surpassing this threshold requires collecting sales tax.
In New York, the economic nexus threshold is $500,000 or 100 transactions from deliveries of tangible personal property or services to locations within New York State during the previous twelve months.
Services
- Generally, services themselves are not taxable in New York. However, there are some exceptions where a service directly relates to the sale of tangible personal property, and the service charge is included in the sales price.
Goods
- Most tangible personal property sold in New York is taxable. This includes common items like furniture, sporting goods, and more
- There are some exceptions for specific goods, such as: certain unprepared food items (but not restaurant meals), prescription drugs and medical devices, and certain farm machinery and equipment.
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.
Clothing
- In New York, state sales tax generally does not apply to most clothing and footwear for human use priced under $110 per item or pair, or to items used to make or repair such clothing. However, clothing priced at $110 or more is fully taxable.
- Local sales tax rules vary: while apparel under $110 is exempt from local tax in some jurisdictions like New York City and several counties as of March 2023, it is subject to local sales tax in other areas. Local tax rates range from 3.5% in Ontario County to 4.875% in Yonkers.
Electronics
- Electronic goods are taxable in New York
SaaS
- SaaS is generally taxable in New York.
Digital Products
- Digital products that are taxable when sold in physical form, such as ebooks, games, movies, and music, are exempt from New York sales and use tax when delivered electronically.
Software
- Prewritten computer software delivered electronically is considered tangible personal property and therefore taxable.
How to Register for Sales Tax in New York
If you’ve determined you need to collect sales tax in New York, registering for a Sales Tax Certificate is the next step. Here’s how you can do it:
1. Online Registration:
The New York Department of Taxation and Finance (NYSDTF) recommends online registration through their Business Registration System (https://www.tax.ny.gov/). It’s generally faster and more convenient. Here’s what you’ll need:
- Business name and address
- Contact information
- Federal Employer Identification Number (EIN)
- Business activity start date
- Projected monthly sales and taxable sales
- Products or services offered
2. Paper Application:
If online registration isn’t an option, you can also apply for a Sales Tax Certificate by mail using a paper application (Form CA-1).
- Download the New York Certificate of Authority application (Form CA-1) from the NYSDTF website.
- Complete the form following the instructions provided.
- Mail the completed application form along with any required documentation to the address listed on the form.
Whichever method you choose, make sure to have all the necessary information readily available to ensure a smooth registration process.
Additional Notes:
- You may be required to file a surety bond along with your application, depending on your business type and projected sales tax liability.
- Once your application is approved, you’ll receive a Sales Tax Certificate with your registration number. You’ll need this number to collect and report sales tax.
For more detailed information and specific instructions, contact sales tax experts like Yonda Tax or visit the New York Department of Taxation and Finance website.
How to Collect Sales Tax in New York
Once you’ve registered for a Sales Tax Certificate in New York, here’s what you need to know about collecting sales tax:
- Determine the Sales Tax Rate:
The sales tax rate in New York is a combination of a statewide base rate and potential additional local rates. The base rate is currently 4%. However, many counties, cities, and special districts in New York impose additional local sales taxes on top of the base rate.
You can find the specific sales tax rate for the location where your business is located or where you’re delivering goods/services by using the New York Department of Taxation and Finance’s Sales Tax Map.
1. Apply the Right Sales Tax Rate:
Once you know the applicable tax rate, simply add it to the taxable sales price of your goods or services to determine the amount of sales tax to collect from the customer
2. Keep Good Records:
It’s crucial to maintain accurate records of your sales and sales tax collected. These records are essential for filing sales tax returns and during any potential audits by the state.
3. Report and Remit Sales Tax:
New York businesses are required to file sales tax returns and remit the collected tax on a regular basis. The specific filing frequency depends on your business’s total sales tax liability.
Generally, businesses with lower sales tax liability will file quarterly, while those with higher liability may need to file monthly.
You can find detailed information on sales tax filing deadlines and remittance procedures on the New York Department of Taxation and Finance website or by contacting them directly.
Additional Tips:
- Consider hiring a sales tax wingman to take care of calculations, filing, and remittance, saving you time and ensuring accuracy.
- Stay informed: Sales tax laws and regulations can change, so stay updated on any changes that might affect your business.
How to get a sales tax permit/license in New York?
To obtain a sales tax permit in New York State, register online through the New York State Department of Taxation and Finance website using their Online Services. You’ll need to provide details such as your business name, address, Federal Employer Identification Number (FEIN) or Social Security Number (SSN), and business activities. Alternatively, you can complete a paper application by downloading Form TP-100 from their website and mailing it in.
Once your application is processed, you will receive your New York State Sales Tax Certificate of Authority.
When are New York’s sales tax returns due?
- If you file sales tax returns on a monthly basis, they are due on the 20th of the month following the reporting month.
- Quarterly filers must submit their sales tax returns by the 20th of the month following the end of the reporting quarter.
- Yearly filers have until March 20 of the following year to submit their sales tax returns.
Is anyone exempt from sales tax in New York?
Yes, New York State provides several exemptions from sales tax. Key exemptions include:
- Certain Goods and Services:
- Most food and beverages sold for off-premises consumption are exempt, though there are exceptions for prepared foods and beverages sold in certain establishments.
- Prescription medications and certain medical devices are exempt from sales tax.
- Clothing and footwear under $110 per item are generally exempt from sales tax.
- Sales for Resale:
- Purchases made for resale are exempt if the buyer provides a valid resale certificate.
- Nonprofit Organizations:
- Charitable and Religious Organizations: Purchases made by qualifying nonprofit organizations may be exempt from sales tax, provided they present the appropriate exemption certificates.
- Government Entities:
- Federal, State, and Local Government: Purchases made by government agencies are typically exempt from sales tax.
Do I Have to Collect Sales Tax from New York Customers if I Sell on Amazon, Walmart, Ebay, or Etsy?
No.
New York has a marketplace facilitator tax law, which means that marketplaces like Amazon and eBay are required to collect sales tax on behalf of 3rd party sellers on their platforms.
If you have a sales tax nexus in New York, keep in mind that you're still required to collect sales tax on your other non-marketplace New York sales.
