How New York Sales Tax Works
New York's sales tax has multiple layers that combine to create your total rate:
- 4.00% State Tax — Applies to all taxable sales statewide
- 0.375% MCTD Tax — Metropolitan Commuter Transportation District (NYC + 7 surrounding counties)
- 3.00% to 4.875% County Tax — Each county sets its own rate
- 4.5% NYC City Tax — Only applies in the five boroughs
For NYC residents, the combined rate is 8.875% (4% state + 4.5% NYC + 0.375% MCTD). This is one of the highest sales tax rates in the United States, especially when combined with NY's already-high income taxes.
NY Sales Tax Rates by County (2026)
| Location | Combined Rate | Notes |
|---|---|---|
| NYC (All 5 Boroughs) | 8.875% | Includes 0.375% MCTD |
| Buffalo / Erie County | 8.75% | Highest non-NYC rate |
| Nassau County (LI) | 8.625% | Includes MCTD |
| Suffolk County (LI) | 8.625% | Includes MCTD |
| Westchester County | 8.375% | Includes MCTD |
| Rockland County | 8.125% | Includes MCTD |
| Orange County | 8.125% | Includes MCTD |
| Albany / Schenectady | 8.00% | Capital Region |
| Rochester / Monroe | 8.00% | Western NY |
| Syracuse / Onondaga | 8.00% | Central NY |
| Warren County | 7.00% | Lake George region |
| NY State Base Only | 4.00% | No local tax (rare) |
What's Taxable vs Exempt in New York
Generally Taxable
- Most tangible personal property (electronics, furniture, vehicles)
- Restaurant meals and prepared foods
- Hot beverages and drinks
- Beer, wine, and liquor
- Vehicle sales and leases
- Personal services (salons, gyms, dry cleaning)
- Hotel/motel stays (plus separate occupancy tax)
Generally Exempt
- Most unprepared groceries (fresh food, milk, bread)
- Prescription and most over-the-counter medications
- Clothing and footwear under $110 per item (state portion exempt; some counties also exempt)
- Feminine hygiene products and diapers
- Newspapers, magazines, and most periodicals
- Most professional services (legal, medical, accounting)
- Internet access services
The Clothing Exemption: Special Rules
New York exempts clothing and footwear costing less than $110 per item from the 4% state sales tax. The exemption applies per item, not per receipt — so you could buy multiple $50 shirts and each qualifies for the exemption.
However, the exemption rules vary by county:
- NYC (4.5% city portion): Also exempts clothing under $110
- Most counties: Local portion (3-4%) still applies even when state exempts
- Some counties: Match the state exemption
For NYC, this means clothing under $110 is fully sales tax-exempt (8.875% saved). In most other NY counties, you still pay the county portion (3-4%) on clothing under $110.
NYC vs Other Major Cities Comparison
| City | Combined Sales Tax |
|---|---|
| Chicago, IL | 10.25% |
| Long Beach, CA | 10.25% |
| Memphis, TN | 9.75% |
| Los Angeles, CA | 9.50% |
| Seattle, WA | 10.35% |
| New York City, NY | 8.875% |
| Boston, MA | 6.25% |
| Houston, TX | 8.25% |
| Miami, FL | 7.00% |
Frequently Asked Questions
New York State sales tax is 4% in 2026. Counties add their own sales tax (typically 3-4.875%), and NYC adds an additional 4.5% city tax. Combined rates range from 7% in some upstate counties to 8.875% in NYC. The Metropolitan Commuter Transportation District adds 0.375% to NYC and surrounding counties.
NYC sales tax is 8.875% in 2026. This breaks down as: 4% NY State + 4.5% NYC City + 0.375% Metropolitan Commuter Transportation District (MCTD). This rate applies to all five boroughs (Manhattan, Brooklyn, Queens, Bronx, Staten Island).
In New York State, clothing and footwear costing less than $110 per item are exempt from the 4% state sales tax and the 0.375% MCTD tax. However, local county and city taxes may still apply. NYC, for example, exempts clothing under $110 from city tax too. Check your specific locality.
NY exempts: most groceries (unprepared food), prescription/OTC medications, clothing under $110 (state portion), feminine hygiene products, diapers, baby food, newspapers and periodicals, most professional services. Prepared foods, restaurant meals, electronics, and most tangible goods ARE taxable.
Sources & Methodology
- New York State Department of Taxation and Finance — Official sales tax rates by jurisdiction
- NYS Publication 718 — Sales Tax Rates by Locality
- NYS Tax Bulletin ST-740 — Quick Reference Guide for Tax Forms
- NY State Tax Law Article 28 — Sales and Compensating Use Taxes
Calculator methodology and rates reviewed by Benjamin Thomas, CPA, MST. Rates verified against NYS Department of Taxation publications dated January 2026.