New York City, New York Sales Tax Rate

Economic Context. New York City is the largest city in the United States by population (8.3M) and the cultural and financial capital of the world.

The combined sales tax rate in New York City is 8.875%, composed of the New York state rate of 4.000% plus a local portion of 4.875%.

Key industries driving New York City's economy include Finance/banking, technology, media/publishing, healthcare — each may have distinct sales tax treatment under New York law.

The formula to calculate sales tax for any purchase:

For a $150.00 purchase in New York City: tax is $13.31 ($150.00 × 0.08875), total is $163.31.

Sales tax in New York City is administered locally by New York City (all 5 boroughs — Manhattan, Brooklyn, Queens, Bronx, Staten Island). At 8.875%, NYC has the highest combined sales tax rate in New York State alongside Yonkers.

Special tax rules specific to New York City:

• NYC combined rate: 8.875% (state 4% + NYC 4.5% + MTA 0.375%)
• No additional city sales tax — NYC's rate includes city and MTA surcharge
• Clothing and footwear under $110 are exempt from NY sales tax
• Groceries and prescription drugs are exempt

New York City-specific: NYC's position as the world's financial capital means an enormous volume of B2B and financial services transactions.

New York City spans 5 counties (boroughs) — all have the same 8.875% rate.

While sales tax is collected by registered vendors at the point of sale, use tax is a self-assessed tax that applies when taxable goods are purchased from a vendor who did not collect sales tax. The rates for both are identical: 8.875%.

If you purchase equipment, software, or supplies from out-of-state merchants and no tax was charged, you are legally obligated to report and pay use tax to New York State Department of Taxation and Finance. Use tax audits are common — failure to accrue on untaxed invoices is a frequent audit finding.

Businesses with physical presence or economic nexus in New York must register with New York State Department of Taxation and Finance before collecting tax.

For full registration, filing, exemption certificate, and audit guidance, see the New York sales tax guide.

Businesses in New York City must maintain resale certificates and transaction records to comply with New York tax audits. If you sell wholesale, obtain a valid resale certificate from the buyer.

For detailed guidance, see the New York sales tax page.