New York Sales Tax

New York Sales Tax Guide (2026)

4% statewide, reaching 8.875% in New York City once local rates and the transit surcharge stack, with a nexus test that uniquely requires both a dollar threshold and a transaction count.[1]

5 min read • Reviewed by Tax Advisory Team • Verified • Sources: NY Tax & Finance
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Quick Facts

Sales Tax at a Glance

State base rate
4% [1]
Local rate range
3%–4.5% [1]
MCTD surcharge
0.375% [2]
Combined rate range
7%–8.875% [1]
Highest rate
NYC & Yonkers, 8.875% [1]
Clothing exemption
Under $110 per item [3]
Economic nexus
$500k AND 100 sales [4]
Sourcing rule
Destination-based [5]
SaaS treatment
Taxable [6]
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The $110 clothing exemption is not uniform across New York

Clothing and footwear under $110 per item is exempt from the 4% state tax everywhere, but the local portion of that exemption only applies where the county or city separately elected it.[3] These jurisdictions exempt at both levels:

New York City Chautauqua Chenango Columbia Delaware Dutchess Greene Hamilton Monroe Putnam Tioga
Everywhere else still charges local tax on sub-$110 clothing, including Nassau, Suffolk, Westchester, Erie and Yonkers. Check Publication 718-C against the delivery address before advising a client.[3]
Estimate

New York sales tax calculator

New York · state rate 4%
Presets are verified. For an exact address, choose Custom.
Rate applied–
Estimated sales tax–
Total with tax–

Estimate only, and it does not apply the $110 clothing exemption. Confirm your address in Publication 718[1], or let CrownGlobe handle it.

Rates & Registration

New York Sales Tax Rates, Nexus & the dual test

NYC rate components

State rate4%
NYC local rate4.5%
MCTD surcharge0.375%
NYC combined8.875%

The 0.375% MCTD surcharge applies across all five boroughs plus Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk and Westchester.[2]

Who must register

Economic nexus requires both tests, not either one. A remote seller must exceed $500,000 of receipts from tangible property delivered into New York and make more than 100 such sales, measured over the preceding four sales tax quarters.[4] Any physical presence triggers registration on its own.

New York taxes SaaS: prewritten software is tangible personal property regardless of delivery, so remote access is a taxable sale. True custom software stays exempt.[6]

Compliance

Sales Tax Registration and Filing

You need a Certificate of Authority before making any taxable sale.

How to register

  • Confirm nexus→
  • NY Business Express→
  • Certificate of Authority→
  • Display at premises→
  • File online

Register at least 20 days before your first taxable sale. Operating without a certificate can cost $500 for the first day plus $200 a day, capped at $10,000.[7]

Filing & due dates

FrequencyThresholdPeriod ends
Quarterly (default)StandardFeb / May / Aug / Nov
Monthly$300k+ per quarterMonth end
Annual$3,000 or less a yearEnd of February

New York quarters do not match calendar quarters. They run March to May, June to August, September to November and December to February, each due 20 days after the period ends.[8]

Pricing

Sales Tax & Nexus Pricing

Multi Tax Filing – $50 Per State/Month

ServiceWhat’s Included
Multi-state registrationNexus tracking, permit setup, and state agency coordination.
Monthly filingSales tax returns filed in every registered state.
Exemption & audit supportCertificate handling and notice response.
Get Started with Multi-State Filing
Taxability

Taxable vs. exempt

New York taxes goods, several services, and prewritten software including cloud access, with a large exemption list.[9]

Generally taxable

  • Tangible retail goodsTax Law 1105(a)
  • Prewritten software & SaaSTax Law 1101(b)(14)
  • Clothing at $110 or moreTax Law 1115(a)(30)
  • Restaurant & prepared foodTax Law 1105(d)
  • Candy & soft drinksTax Law 1115(a)(1)
  • Shipping on a taxable saleTax Law 1111(h)

Generally exempt

  • Clothing under $110 per itemState tax, all counties
  • Groceries for home consumptionTax Law 1115(a)(1)
  • Prescription & OTC medicinesTax Law 1115(a)(3)
  • Custom softwareTax Law 1101(b)(6)
  • Non-software digital goodsTSB-A-12(27)S
  • Sales for resale on Form ST-120Tax Law 1101(b)(4)
Worth flagging: shipping is taxable in New York whenever the item shipped is taxable, even if separately stated. On a mixed shipment, one combined delivery charge is fully taxable unless the seller fairly allocates it.[10]
Reference

Glossary of key terms

Nexus
The connection to a state substantial enough to require tax registration.
MCTD surcharge
A 0.375% add-on across the twelve-county metropolitan commuter transportation district.
Certificate of Authority
New York’s sales tax registration, which must be displayed at the business.
Sales tax quarter
New York’s own quarters, running March to May and so on, not calendar quarters.
Prewritten software
Canned software taxed as tangible property however it is delivered, including cloud access.
Resale certificate
Form ST-120, given within 90 days, letting a buyer purchase stock tax-free.
FAQ

Sales Tax FAQs

4% at state level. Combined rates run from 7% upstate to 8.875% in New York City and Yonkers, which are tied for the highest rate in the state.

4% state, plus a 4.5% New York City local rate, plus the 0.375% metropolitan commuter transportation district surcharge.

Clothing and footwear under $110 per item is exempt from the 4% state tax statewide. The local portion is only exempt in New York City and ten counties, so most of the state still charges local tax on it.

Both tests must be met: more than $500,000 of receipts from tangible property delivered into New York, and more than 100 such sales, over the preceding four sales tax quarters.

Yes. New York treats prewritten software as tangible personal property however it is delivered, so cloud and remotely accessed software is taxable. Genuinely custom software is not.

New York quarters do not follow the calendar. They end in February, May, August and November, and each return is due 20 days after the period closes.

Verification

Sources & methodology

  1. NY Tax – Publication 718 Rates (PDF)
  2. NY Tax – Rates, Additional Taxes & Fees
  3. NY Tax – Publication 718-C Clothing (PDF)
  4. NY Tax – TSB-M-19(4)S Nexus (PDF)
  5. NY Tax – Publication 750 Guide (PDF)
  6. NY Tax – TB-ST-128 Computer Software (PDF)
  7. NY Tax – Register as a Sales Tax Vendor
  8. NY Tax – Filing Requirements
  9. NY Tax Law – Section 1115 Exemptions
  10. NY Tax – TB-ST-838 Shipping
  11. NY Tax Law – Section 1109 MCTD
  12. NY Tax – Marketplace Providers
  13. NY Tax – TB-ST-805 Penalties (PDF)
  14. NY Tax – TB-ST-135 Food & Beverages (PDF)
Methodology: Every figure is checked against the New York Department of Taxation and Finance or the New York Tax Law directly, never copied from a third-party guide. New York local rates may change on March 1, June 1, September 1 or December 1, so this page is reviewed quarterly.
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