The State and City charge sales tax on many services and on retail sales for most goods.
The total sales and use tax rate in New York City is 8.875%.
- New York City local sales and use tax rate of 4.5%
- New York State sales and use tax rate of 4%
- Metropolitan Commuter Transportation District surcharge of 0.375%
There is no sales tax on an item of clothing or footwear that costs less than $110. An item of clothing or footwear that costs $110 or more is subject to the full 8.875% tax rate. Sales tax is calculated per item, so even if you buy two or more items that add up to $110 or more, you only pay tax on the items that individually cost $110 or more.
The following purchases are exempt from sales tax:
- Unprepared and packaged food products, dietary foods, certain beverages, and health supplements sold by food markets
- Drugs and medicines for people
- Medical equipment and supplies for home use
- Newspapers, magazines, and other periodicals
- Prosthetic aids and devices, hearing aids, and eyeglasses
- Laundry and dry cleaning services
- Shoe repair services
- Some items used to make or repair clothing and footwear
- Veterinary medical services