New York City Sales Tax Rates and What They Apply To

The current sales tax rate in New York City

New York City's sales tax is 8.875%. This rate combines the New York State sales tax of 4%, the Metropolitan Transportation Authority tax of 0.375%, and the New York City local sales tax of 4.5%. When you buy something in NYC, the total tax added to your purchase is this combined 8.875%.

The rate applies to most retail purchases within the five boroughs — Manhattan, Brooklyn, Queens, The Bronx, and Staten Island. If you buy the same item in a different part of New York State outside the city, you'll pay a lower rate because you won't owe the city and MTA portions of the tax.

Key Takeaways

• New York City's sales tax rate is 8.875%, made up of state, city, and transportation authority taxes combined.
• Groceries, prescription medications, and certain clothing items under $110 are exempt from sales tax in New York City.
• Restaurant meals, prepared foods, and non-prescription items are taxed at the full 8.875% rate.
• The tax is calculated on the pre-tax price and added at the register or included in the final price depending on the retailer.

What is and isn't taxed in New York City

Not everything you buy in NYC is subject to the 8.875% rate. Groceries — unprepared food you cook at home — are not taxed. This includes produce, meat, dairy, bread, and canned goods. The distinction is whether the food is ready to eat or requires preparation.

Prescription medications are also exempt from sales tax in New York. Over-the-counter medicines, vitamins, and health supplements are taxed. Clothing and footwear under $110 per item are tax-free, but items over that threshold are taxed on the full amount. A $120 coat is taxed; a $100 shirt is not.

Restaurant meals, takeout food, and prepared items from delis or grocery store hot bars are all taxed at 8.875%. A sandwich from a deli counter is taxed; a loaf of bread from the shelf is not. This rule applies even if you're taking the food home.

How the tax appears on your receipt

Most retailers in NYC show the sales tax separately on your receipt, so you can see the 8.875% added to your subtotal. Some businesses, particularly small shops or street vendors, may include the tax in the displayed price. Either way, you're paying the same total — the tax is just shown differently.

When you see a price tag in a store, it usually does not include sales tax. The final amount you pay at the register will be higher. Online retailers may or may not include NYC sales tax depending on their policies and where they're based, so check the cart total before you complete a purchase.

Sales tax on services and digital purchases

Services like haircuts, dry cleaning, and car repairs are generally not subject to sales tax in New York. However, some services bundled with products — like installation or delivery — may be taxed depending on how the business structures the charge.

Digital purchases like e-books, streaming subscriptions, and downloaded software are taxed in New York City. A physical book is not taxed, but an e-book is. Streaming services like Netflix and Spotify charge New York residents sales tax on their monthly fees.

Tax rates outside New York City

If you travel to other parts of New York State, the sales tax will be lower. Most of the state outside NYC has a combined rate between 7% and 8.875%, depending on the county. For example, Westchester County charges 8.875%, while some upstate counties charge 7% or 7.5%.

This difference matters if you're buying large items or doing significant shopping. A $1,000 purchase in NYC costs $88.75 in tax, while the same purchase in a county with 7% tax costs $70 in tax — an $18.75 difference.

Who collects and where the money goes

Retailers collect the sales tax from you at the point of sale and send it to New York State. The state then distributes the money: the state portion funds general state operations, the city portion funds NYC services, and the MTA portion funds public transportation including the subway, buses, and commuter rail.

You don't send sales tax to the government yourself — the business handles it. If a retailer fails to collect or remit sales tax, that's a violation they're responsible for, not you.

Frequently Asked Questions

Do I pay sales tax on clothes at all stores in NYC?

Clothing and footwear under $110 per item are not taxed. Items $110 or more are taxed on the full price. This applies at all retailers in NYC — department stores, boutiques, and discount chains all follow the same rule.

Is sales tax the same in all five boroughs?

Yes. Manhattan, Brooklyn, Queens, The Bronx, and Staten Island all charge 8.875%. The rate is uniform across NYC because it's a city-wide tax, not a borough-by-borough tax.

Why is the MTA tax included in the sales tax?

New York State added the MTA tax to the sales tax to fund public transportation. It's collected the same way as other sales tax — at the register — and goes directly to the Metropolitan Transportation Authority to support subways, buses, and rail service.

Do I pay sales tax on a meal if I eat it at the restaurant versus taking it home?

You pay sales tax either way. Whether you eat in the restaurant or take the food home, prepared meals are taxed at 8.875%. The only exception is if you buy unprepared groceries to cook yourself.

What happens if a store charges me the wrong sales tax?

If you notice you were overcharged, ask the store for a correction. Most retailers have systems to catch errors, but mistakes happen. Keep your receipt and contact the store's customer service if the tax amount seems wrong.