What is the sales tax in New York?
Combined rate, the threshold that makes you register, and the rules that decide what you charge.
The New York state sales tax rate is 4%. Local rates average 4.53%, for a combined average of 8.53%, and reach 8.875% in the highest jurisdictions. A remote seller has to register once sales into New York pass $500,000 in sales and 100 separate transactions into the state over the preceding four sales tax quarters. Charge the rate at the buyer’s address.
- State rate
- 4%
- Average local rate
- 4.53%
- Combined average
- 8.53%
- Highest in the state
- 8.875%
Do you have to register?
Economic nexus threshold
$500,000 and 100 transactions
Measured over the preceding four sales tax quarters. Both tests have to be met before you owe anything, so crossing one alone does not create the obligation. Physical presence — staff, an office, or stock sitting in a 3PL in the state — creates the obligation immediately, before any threshold applies.
What you charge, and on what
- Which address sets the rate Charge the rate at the buyer’s address.
- Is shipping taxed Taxable. Delivery on taxable goods is taxable. On a mixed order, tax the share relating to taxable items.
- Clothing Exempt under a price cap. Clothing and footwear under $110 per item are exempt from the 4% state rate. Local treatment varies by county.
- Groceries Exempt
- Marketplace sales Amazon, Walmart, Etsy, and eBay collect and remit on the orders they process. Sales through your own store stay yours to collect on.
- Registering Register directly with the New York State Department of Taxation and Finance. This state runs its own registration.
Worth knowing about New York
- One of only two states with an AND test: you must cross both $500,000 and 100 transactions.
- The measurement window is the preceding four sales tax quarters, not a calendar year, so the date you cross it moves.
- The clothing exemption applies per item at the state level only; roughly half the counties also exempt it.
New York sales tax questions
What is the sales tax rate in New York?
The state rate is 4%. Local jurisdictions add an average of 4.53% on top, which puts the typical combined rate at 8.53% and the highest at 8.875%. Because the rate follows the address, the figure you charge depends on where the order is going.
When does a remote seller have to register in New York?
Once sales into the state pass $500,000 in sales and 100 separate transactions into the state over the preceding four sales tax quarters. Both tests have to be met, so passing only one of them does not create the obligation. Physical presence, including inventory held at a 3PL in the state, creates the obligation immediately, before any threshold applies.
Is shipping taxable in New York?
Taxable. Delivery on taxable goods is taxable. On a mixed order, tax the share relating to taxable items.
Is clothing taxed in New York?
Exempt under a price cap. Clothing and footwear under $110 per item are exempt from the 4% state rate. Local treatment varies by county.
Where the authoritative number is
Rates and thresholds change, and the New York State Department of Taxation and Finance sets them. Check there before you register or file.
Other states that treat apparel differently
Know before you cross the line
The threshold above is easy to read and hard to track, because it counts sales from your store, your marketplaces, and your wholesale accounts together. Endless keeps those on one source of truth, so what you have sold into New York this year is a number you already have rather than one you assemble after the fact.
This page is a reference, not tax advice. Confirm registration and filing decisions with the New York State Department of Taxation and Finance or a tax professional.