New York Sales Tax Rate & Rules (2026)

Last updated: 2026-03-27

What is the sales tax rate in New York?

What is taxable in New York?

How do you register to collect sales tax in New York?

What is the economic nexus threshold for New York?

How to register for sales tax in New York

Before you can collect sales tax, you need to register with the New York State Department of Taxation and Finance. Here is the step-by-step process.

1. Register online through the New York State Department of Taxation and Finance at tax.ny.gov
2. Apply for a Certificate of Authority — registration is free
3. You must register at least 20 days before you start making taxable sales in New York
4. Provide your FEIN or SSN, business entity type, and each New York location where you sell
5. Certificates are typically issued within 7-10 business days

How to collect sales tax in New York

Once registered, you are responsible for charging the correct amount of sales tax on every taxable transaction. Here is how the collection process works in New York.

1. Determine taxability — New York taxes most tangible goods, digital goods, and SaaS but exempts most clothing under $110
2. Calculate the combined rate (state 4% + local + MCTD surcharge) based on the delivery destination
3. New York is a destination-based state — charge the rate where the buyer receives the product
4. Charge the correct rate at the point of sale and separately itemize on receipts
5. Accept New York resale certificates (Form ST-120) from qualifying buyers
6. Keep detailed records of all transactions and exemption certificates for at least 3 years

How to file and remit sales tax in New York

Filing your sales tax return on time is critical to avoid penalties. New York requires electronic filing for most businesses.

1. File electronically through the New York Online Services portal at tax.ny.gov/online
2. Most businesses file quarterly; large filers (over $300,000 annually) file monthly with quarterly reconciliation
3. Quarterly returns are due on the 20th of the month following the quarter (March 20, June 20, September 20, December 20)
4. Report gross sales, taxable sales, and tax due by jurisdiction
5. Pay electronically — New York requires electronic filing for most businesses
6. Retain all records for at least 3 years

What is exempt from New York sales tax?

Not everything is subject to sales tax. New York provides exemptions for certain products, buyers, and uses. Always verify the specific exemption requirements with the New York State Department of Taxation and Finance.

• •Sales for resale with a valid New York resale certificate (Form ST-120)
• •Clothing and footwear under $110 per item (exempt from both state and NYC tax)
• •Grocery food for home consumption
• •Prescription drugs and certain medical equipment
• •Manufacturing machinery and equipment
• •Sales to the federal government and New York state agencies
• •Qualifying nonprofit organizations (Form ST-119)
• •Residential energy (electricity, gas, steam, heating fuels)

What are the highest combined sales tax rates in New York?

Because New York allows local jurisdictions to add their own sales taxes on top of the state rate, combined rates vary by location. Here are some of the highest combined rates in major New York cities.

What is use tax in New York?

New York use tax applies at the same combined rate when you purchase taxable goods from out-of-state vendors who do not collect New York sales tax. Businesses report use tax on their regular sales tax return. Individual consumers report on their NY income tax return or file Form ST-140. Common triggers include online purchases, out-of-state equipment, and items bought while traveling.

Does New York have marketplace facilitator rules?

New York requires marketplace facilitators meeting the economic nexus threshold ($500,000 and 100 transactions) to collect and remit sales tax on behalf of third-party sellers. Amazon, eBay, Etsy, and similar platforms collect New York sales tax on marketplace transactions. Sellers using marketplace facilitators are not required to collect on marketplace sales but must collect on direct sales.

What are the penalties for sales tax non-compliance in New York?

New York imposes a late-filing penalty of 10% of the tax due (minimum $50), plus 1% per month for each additional month (up to 30%). Late-payment penalty is 0.5% per month (up to 25%). Interest accrues at the underpayment rate set quarterly (typically 7-9%). Fraud penalties are 50% of the underpayment. Criminal penalties for willful evasion can result in Class E felony charges.

This is general information, not legal or tax advice. Tax rules change frequently — always verify with the official state agency. Sources: New York State Department of Taxation and Finance.