New York sales tax is one of the more complicated configurations in the United States. There are multiple levels of sales tax (state, county, city, and others) to be considered, particularly within New York city. The rules and regulations are complicated and may be difficult to understand. We’ve provided this guide to inform retailers of the basics. But because tax laws change regularly, we advise you to review the New York Department of Taxation & Finance website and/or seek legal advice if you intend to do business within the state of New York.
New York State sales tax varies by location. There is a state sales tax as well as by city, county or school district rates. New York (NY) Sales Tax Rate: 4% plus any local tax rate imposed by city, county or school district, typically between 3-5%.
New York (NY) Sales Tax Rate: 4%
Maximum rate for local municipalities: 8.875%
New York Sales Tax varies by county, but a given county may have more than one rate due to local taxes. Therefore, a retailer cannot determine the tax rate simply by knowing the county. Likewise, New York sales tax also cannot be accurately determined by zipcode alone.
New York collects destination based sales tax, that is, local sales tax based on the destination of shipment or delivery within the state by businesses. There is no sales tax charge for deliveries outside the state. Learn more details at their website.
Businesses that have a physical location in the state of New York are required to collect sales tax. This is known as "nexus". Most other businesses will not have New York sales tax nexus, except for the following:
As expected, the retail sale of most products is subject to New York sales tax. Certain services, admissions, and dues are also taxable. New York lists the following items as being subject to sales tax:
Food for home consumption, prescription and non-prescription medication, and sales to the government or charitable/exempt organizations are not taxable.
Certain other services are subject to New York City sales tax, but not state or other sales tax. These include beautician services; massage services; weight control and related services; and written/oral credit rating services. For a complete list, see this guide.
Sellers of tangible personal property and providers of taxable services must register with the NY tax department prior to doing business. This registration process will provide the business with a Certificate of Authority. This applies regardless of whether the business operates from a commercial property or is a home-based business. You must have a NY.gov ID before you can apply.
Check out the Department of Taxation & Finance website for:
At the time of this writing, out-of-state sellers with no nexus in the state are not required to collect New York state sales tax.
The E-file mandate requires certain for file Web file their tax returns and pay electronically, if they:
This covers most filers. You must must register with Online Services first.
In addition, PrompTax is an electronic filing and payment program that is mandatory for certain businesses. If you have taxable receipts of more than $500,000 or have an annual liability for prepaid sales tax on motor fuel and diesel motor fuel exceeding $5 million, you must enroll and file there.
New York requires businesses to file and pay sales tax either monthly, quarterly, or annually. The frequency with which you must file is determined by your business’s estimated yearly income.
Monthly Filers: No later than 20 days after filing period (20th of each month, or next available business day).
Quarterly Filers: No later than 20 days after filing period. (20th of month following end of quarter, or next available business day)
|January – March (Q1)||April 20|
|April – June (Q2)||July 20|
|July – September (Q3)||October 20|
|October – December (Q4)||January 20|
Annual Filers: March 20th
If a due date falls on a weekend or legal holiday, the deadline is extended to the next business day.
Special rules apply to sales tax vendors and employers subject to electronic funds transfer requirements. See PrompTax above.
New York has strict penalties for a failure to file a return and/or failure to pay sales tax due, as well as additional money owed as interest. In addition to civil penalties, there are also possible criminal repercussions, including jail time.
For failing to file a return, the civil penalties are as follows:
For failing to pay tax due, the civil penalties are as follows:
There are additional penalties for not filing or displaying a Certificate of Authority as required, or if you violate certain laws relating to documents and record-keeping.
Complete details can be found at this location on the New York State Department of Taxation and Finance website.
You may be eligible for a vendor collection credit if you file the on time and pay the full amount due. This credit reduces how much you send to NY State with your return. Learn more details at their web page.
You can also use our free sales tax calculator to look up the rate for any New York state address.