New York Sales Tax

On this page you will find handy sales and use tax information about New York.

How to use this page:

We’ve pulled in the information from all our Charts for a consolidated view by state.  Here you can see the sales tax rates and if the state has remote seller nexus rules. You can also see any sales tax holidays or amnesty programs that may exist, though these do not apply to all states.

Below the chart you can find any News & Tip item we have published that relates to New York that you can filter by topic. This will help you get informed on current and past legislation that has passed in the state.

State Rate

4.000%

Range of Local Rates

0% – 5% Some local jurisdictions do not impose a sales tax.

Local Rates Apply to Use Tax

Yes

CLICK-THROUGH NEXUS

5/8/2008

AFFILIATE NEXUS

6/1/2009

ECONOMIC NEXUS

6/21/2018see state notice

MARKETPLACE NEXUS

6/1/2019

Suspension of Certain Taxes on Motor Fuel and Diesel Motor Fuel

June 1, 2022 - December 31, 2022

The following taxes on motor fuel and highway diesel motor fuel are suspended:

  • excise tax
  • prepaid sales tax, and state sales and use taxes
  • the additional State sales and use tax imposed in the Metropolitan Commuter Transportation District
  • Local sales and use taxes are not suspended.
Administration Information
Streamlined Sales Tax Status

Advisory State

NUMBER OF TAXING AUTHORITIES

82 Sales Tax Jurisdictions

HOME RULE AUTHORITIES

N/A

Sales Tax Sourcing (Intrastate)

Destination

Sales Tax Return Due Date

Monthly filers: 20th of month following reporting period. Quarterly filers: last day of month following reporting period

Exemption Information
RESALE CERTIFICATE

New York Resale Certificate

TYPES OF EXEMPTIONS

Product types of exemptions: qualifying tractors, trailers, semitrailers, or omnibuses; promotional materials and associated services; computer system hardware; textbooks for college students; operators of internet data centers; capital improvement services; property and certain services for farm production or commercial horse boarding; purchase of a racehorse; purchases relating to guide, hearing, and service dogs; residential use of energy; and various others

 

Entity types of exemptions: Contractors; exempt organizations purchases; hotel rooms used by veterans; hotel rooms used by New York State or federal employees; certain property or services delivered on a Reservation; state or federal purchase orders

 

New York Exemption Certificate Forms

State Links
History & Fun Facts
HISTORY

  • The New York state sales and compensating use taxes on tangible personal property were effective August 1, 1965. Before that time, tax was imposed by the state and 12 other local governments.
  • New York was an early adopter of “Amazon laws.” In 2008, the state amended its sales and use tax law to expand the state’s definition of nexus to include companies that do not have physical presence other than in-state affiliates.

FUN FACTS
  • New York taxes prepared food items. In 2010, this tax was brought to people’s attention because it was affecting a New York favorite: the bagel. Bagels bought whole and taken away are not taxed. However, bagels that are sliced, toasted, or served with a “schmear” such as cream cheese cross the line into being prepared food and are subject to sales tax.
  • New York has an excellent FAQ on what is considered a sandwich for tax purposes.

The State of New York Maintains that End-of-lease Adjustments for Fleet Cars are Not Eligible for a Sales Tax Refund

A fleet management company that leases fleets of vehicles to businesses in New York was told by an administrative law judge at the New York Division of Tax Appeals that it could not claim sales tax credits for refunds of tax paid to vehicle lessees at the end of their leases following a rental adjustment that decreased the total rent paid under the lease.

New York Appeals Court ruling on sales tax refund for concrete offers reminder of the critical role invoicing plays in sales tax

A July 2022 slip opinion ruling by New York Appellate Division’s Third Department against a company claiming eligibility for sales tax refunds on several purchases of concrete is a reminder that companies can save vendors money simply by the way they package goods for sale.

New York Upholds Taxability of Gift Card Promotions

The New York Supreme Court, Appellate Division held Apple Inc. accountable for not collecting an appropriate amount of sales tax on the promotional gift cards given with certain purchases.

Service Providers: Don’t Assume You Are Always Tax-Free!

Service providers—especially in the professional services realm—can be quick to assume that their services are nontaxable and that they do not need to collect sales tax and remit sales tax on their sales of services.

State Notices & Resources for Remote Sellers

Use this state by state guide to find each state\’s initial guidance on how to proceed post-Wayfair, state resources such as FAQs, and any state activity such as going through a legislative process that impacts remote sellers.

New York Guidance on Sales of Solar Energy Systems

The New York State Department of Revenue released a publication specifying the combined state and local sales and use tax rates for each county or locality, effective March 1, 2022.

New York Advertising Analysis Service Provider to Collect Sales Tax

A New York company that helps clients measure the effectiveness of advertising efforts is considered an information services provider.

New York Grants Sales Tax Refund to Online Loan Marketplace

A New York taxpayer, an online loan marketplace, filed a petition against the Department of Revenue for a sales tax refund from the state since its primary function is not as an information services provider.

Economic Nexus State by State Chart

Key information such as effective dates, thresholds, and includable sales for out-of-state sellers making sales into states that have enacted economic nexus legislation both before and after the South Dakota v. Wayfair Supreme Court decision.

New York Releases Advisory Opinion on Software and Consulting Services

In an Advisory Opinion dated November 17, 2020, the New York Commissioner clarified their position on the taxability of consulting services that provide access to online customer portals.

Taxpayer‘s Online Webcasting and Virtual Communication Solution Not Subject to New York Sales Tax

A taxpayer’s cloud-based webcasting and virtual communications solution was not found subject to sales tax in New York.

New York Clarifies that Certain Database Service is not Subject to Sales Tax

The New York Commissioner of Tax and Finance advised a petitioner that their reports of individual consumer data, which is provided only for the specific consumer to see, is not subject to sales tax.

Services to Measure Advertising Effectiveness Are Taxable in New York

A taxpayer’s services to measure the effectiveness of advertising were subject to New York sales and use tax since they qualify as taxable information services.

New York Announces COVID-19 Tax Relief for Restaurants and Food Service Establishments

New York has issued a notice announcing sales and use tax relief for restaurants and food service establishments due to COVID-19.

Safety Manager Services on Construction Sites Taxable in New York

Providing site safety managers, fire safety managers, and emergency action watchmen for work on construction sites is subject to New York sales and use tax.

Certain wall partitions qualify for capital improvements exemption from New York sales tax

A taxpayer’s installation of different types of wall partitions qualified as capital improvements exempt from New York sales tax.

New York Implements Paper Carryout Bag Reduction Fee

Effective March 1, 2020, the state of New York authorizes counties and cities the option to impose a five-cent paper carryout bag reduction fee.

Tax Refund for Gift Card Promotion Denied in New York

A retailer’s protest for a refund of tax was denied since the retailer did not properly identify distributed gift cards as purchases of those gift cards during a Back to School promotion.

New York Releases Guidance on Economic Nexus Threshold and Requirements for Remote Sellers

Businesses without physical presence in New York are required to collect and remit sales tax if they exceed the state’s economic threshold, effective June 21, 2018.

New York Repeals Exemption for Distribution of Gas or Electricity Purchased from Non-Vendors

Effective June 1, 2019, New York repealed its state and local sales and use tax exemption for the transportation, transmission, or distribution of gas or electricity when it is purchased from someone other than the vendor of the gas or electricity.

New York Enacts Marketplace Nexus Provisions

As part of its 2019-2020 budget package, New York has enacted marketplace nexus provisions, effective June 1, 2019.

Certain Cleaning Services Exempt from New York Sales Tax

A taxpayer’s carpet cleaning services are exempt from New York sales tax, but its other cleaning services and floor repair services are subject to sales tax.

House Introduces Online Sales Simplicity and Small Business Relief Act of 2018

On September 13, 2018, Rep. Jim Sensenbrenner (R-WI) and additional U.S. House members introduced the Online Sales Simplicity and Small Business Relief Act of 2018.

Remote Seller Resources

Comprehensive list of resources for remote sellers following the South Dakota v. Wayfair Supreme Court decision – including state notices, videos, articles, training opportunities, and more.