Statewide, the New York sales tax rate is 4.000%, but that number often doesn’t reflect what a customer actually pays. Local taxes push combined rates to 8.875% in some places, such as New York City.

Below, we explain how the state and local rates interact, how to calculate what you owe on a specific transaction, and what triggers a collection obligation for businesses selling into New York.

Highlights

• New York state's combined sales tax rates can go up to 8.875%, depending on the county and city where the transaction takes place.

• Some jurisdictions in and near New York City add a Metropolitan Commuter Transportation District (MCTD) surcharge.

• Businesses selling into New York must collect sales tax once sales in the previous four sales tax quarters exceed the nexus threshold.

What is the New York sales tax rate?

New York's statewide sales tax rate is 4.000%, but it’s a home-rule state, which in this case means counties, cities, and other local jurisdictions can impose their own sales taxes on top of the state rate.

As a result, combined sales tax rates across New York average 8.540%, but vary depending on where the transaction takes place.

How does New York’s sales tax rate work?

New York uses a destination-based sales tax system. The applicable rate depends on where the customer receives the product or service, not where your business is located. In-store purchases set the tax rate by the store’s address, but shipped orders set the tax rate by the delivery address.

New York also has several important product-based exemptions:

• Clothing and footwear under $110 per item (or pair) are exempt from the 4.000% state tax, though counties and cities can still tax them.

• Prescription drugs and medical equipment are exempt statewide.

• Resale purchases are exempt when the buyer provides a valid resale certificate (Form ST-120).

• Unprepared food for home consumption is generally exempt at both the state and local levels.

New York also has a use tax system for tangible personal property and services bought outside the state but used within it.

What are the local sales tax rates in New York?

New York has 62 counties, and nearly all of them impose a local sales tax. The combined rate of state and average local sales tax is 8.540%.

Some jurisdictions go higher. New York City has the state’s highest combined rate at 8.875%, which includes:

• 4% state rate

• 4.875% New York City tax, including 0.375% metropolitan commuter transportation mobility tax (MCTMT)

The MCTMT is imposed on certain employers and self-employed individuals engaging in business within the MCTD. The surcharge applies in Zone 1 and Zone 2:

• Zone 1: Counties of New York (Manhattan), Kings (Brooklyn), Richmond (Staten Island), Bronx, and Queens

• Zone 2: Counties of Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester

The 0.375% fee is included as part of the combined rate of 4.875% for New York City.

2026 New York state sales taxes

What are New York’s sales tax rates by city?

Combined rates can vary even within the same metro area in New York state. Yonkers is 8.875%, the highest combined rate outside New York City, while other Westchester County cities, such as New Rochelle, Mount Vernon, and White Plains, all sit at 8.375%. Albany sits at 8.000%.

What are New York’s sales tax rates by county?

County rates provide a baseline tax before any additional city-level taxes. The five New York City boroughs are each a county, but they share the same combined rate of 8.875%. The following are some of New York’s county-level rates.

All five New York City boroughs share the same combined rate despite being treated as separate counties for other purposes. The combined rate above for those counties, as well as Nassau and Suffolk, includes the MCTD surcharge.

How do you calculate New York’s sales tax rate?

Getting the math right on any individual transaction can be simple. Building a system that gets it right across every transaction, jurisdiction, and product category takes more thought.

Follow these steps:

1. Confirm nexus: You’re required to collect New York sales tax if your business has nexus in the state—either physical (an office, warehouse, or employee) or economic. New York's economic nexus threshold is more than $500,000 in gross receipts from sales and more than 100 transactions of tangible personal property delivered into the state in the previous four sales tax quarters. Both conditions must be met.

2. Determine taxability: Not everything is taxable. Check whether your product or service qualifies for exemptions.

3. Identify the correct jurisdiction: Because New York is a destination-based system, use the delivery address. Avoid relying on ZIP codes alone, as they don’t necessarily map to jurisdictions.

4. Apply the combined rate: Add the state rate (4.000%) to the applicable local rate, then multiply by the taxable sale amount.

5. File and remit: Report and remit through the New York State Department of Taxation and Finance. Filing frequency depends on your taxable sales volume.

Stripe’s sales tax calculator makes it simple to check the correct rate with address-level accuracy, and Stripe Tax can automate rate calculation and nexus tracking at checkout. This removes the manual tracking burden for businesses selling in multiple states.

Does your business need to collect New York’s sales tax rate?

If you have nexus in New York and sell taxable goods or services, you generally need to collect sales or use tax. The bigger challenge is to make sure you’ve correctly identified nexus, applied exemptions, and calculated the right rate.

Here are some common issues that businesses face in New York:

• The clothing exemption creates audit risk: The exemption isn’t universal, and local taxes might still apply.

• Marketplace sales follow different rules: Marketplace providers should collect on your behalf, but direct sales remain your responsibility.

• Remote sellers can hit thresholds fast: New York’s $500,000 and 100-transaction threshold applies to sales delivered into the state. Be mindful of both cumulative transaction amounts and volume.

New York’s audit of sales tax compliance is known to be rigorous, and penalties for underpayment can add up fast. You will need to build a system that calculates tax correctly across all transactions, jurisdictions, and product categories.

How Stripe Tax can help

Stripe Tax reduces the complexity of tax compliance so you can focus on growing your business. Stripe Tax helps you monitor your obligations and alerts you when you exceed a sales tax registration threshold based on your Stripe transactions. In addition, it automatically calculates and collects sales tax, VAT, and GST on both physical and digital goods and services—in all US states and in more than 100 countries.

Start collecting taxes globally by adding a single line of code to your existing integration, clicking a button in the Dashboard, or using our powerful API.

Stripe Tax can help you:

• Understand where to register and collect taxes: See where you need to collect taxes based on your Stripe transactions. After you register, switch on tax collection in a new state or country in seconds. You can start collecting taxes by adding one line of code to your existing Stripe integration or add tax collection with the click of a button in the Stripe Dashboard.

• Register to pay tax: Let Stripe manage your global tax registrations and benefit from a simplified process that prefills application details—saving you time and simplifying compliance with local regulations.

• Automatically collect tax: Stripe Tax calculates and collects the right amount of tax owed, no matter what or where you sell. It supports hundreds of products and services and is up-to-date on tax rules and rate changes.

• Simplify filing: Stripe Tax seamlessly integrates with filing partners, so your global filings are accurate and timely. Let our partners manage your filings so you can focus on growing your business.

Learn more about Stripe Tax, or get started today.