- New York sales tax rates by area
- How to read Publication 718
- The MCTD tax inside those rates
- Destination tax: the rule that sets your rate
- What's taxable in New York
- Who has to register
- How to charge New York sales tax, step by step
- Upstate and downstate rates side by side
- Common New York sales tax mistakes
- My verdict
- Frequently asked questions
New York's state sales tax rate is 4% as of October 2026, and counties and cities add their own tax on top. Combined rates run from 7% to 8.875%, with 8.875% in New York City. An extra 0.375% applies inside the Metropolitan Commuter Transportation District, and it's already built into the combined rates.
New York's sales tax is a destination tax, so the rate follows where the buyer takes delivery. This guide uses the New York State Department of Taxation and Finance's sales tax rates page, Publication 718 (rates by jurisdiction, effective March 1, 2025, the version on the department's site in October 2026) and Tax Bulletin TB-ST-175 on who must register.
New York sales tax rates by area
| Area | Combined rate (as of October 2026) |
|---|---|
| New York State only (no local tax) | 4% |
| New York City (all five boroughs) | 8.875% |
| Yonkers (city) | 8.875% |
| Suffolk County | 8.75% |
| Erie County | 8.75% |
| Nassau County | 8.625% |
| Westchester County | 8.375% |
| Dutchess County | 8.125% |
| Albany County | 8% |
| Monroe County | 8% |
| Ontario County | 7.5% |
| Saratoga County | 7% |
Publication 718 lists these as fractions, such as 8 7/8 for New York City. The department's rates page says the combined rate equals the 4% state rate plus any local rate set by a city, county or school district.
How to read Publication 718
Each line in Publication 718 shows a county or city, its combined rate and a four-digit reporting code, such as 8081 for New York City and 0021 for New York State only. You use the reporting code on your sales tax return to show where each sale was delivered, and the department uses it to share out the local tax. Some counties list cities separately because the city sets its own rate or reporting code. In Oneida County, for example, the county, Rome and Utica are all at 8.75%, but each has its own code, while Oneida city is listed under Madison County at 8%.
Rates can change. The department publishes locality rate change notices and keeps its full list of rate publications on its website, so check for a newer edition before each filing period.
The MCTD tax inside those rates
New York City and the counties of Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk and Westchester sit in the Metropolitan Commuter Transportation District. An extra 0.375% applies to taxable sales there. You don't add it separately: Publication 718 marks those areas with an asterisk and says their listed rates already include it.
Destination tax: the rule that sets your rate
This is the point many sellers miss. New York's rates page says the point of delivery, or where possession passes to the buyer, decides the rate. So a shop in Albany County charging 8% at the counter must charge 8.875% on an order delivered to Brooklyn. And sales delivered outside New York State are exempt. Publication 718 also warns against using ZIP codes, because postal zones don't usually match tax boundaries; it tells sellers to use the department's address lookup and the reporting codes instead.
What's taxable in New York
- Goods: sales of tangible personal property are taxable unless specifically exempt.
- Services: these are generally exempt unless specifically taxable. TB-ST-175 gives the example that opening an office to provide accounting services doesn't require sales tax registration.
- Hotel stays and amusement charges: operators must register.
Who has to register
TB-ST-175 says you must register and get a Certificate of Authority if you'll make taxable sales in New York, and you must apply at least 20 days before you start. How often you sell doesn't change that: selling taxable items at a craft fair once a year still means registering. Businesses with no physical presence in the state must register if, in the last four sales tax quarters, their sales of goods delivered into New York were over $500,000 and they made more than 100 sales.
If you buy stock to resell, my guide to resale certificates explains how exemption certificates work.
How to charge New York sales tax, step by step
- Register and wait for your Certificate of Authority before your first taxable sale.
- For each sale, find where the buyer takes delivery.
- Look up that address with the department's jurisdiction and rate lookup.
- Charge the combined rate on the taxable items.
- Record the reporting code for that jurisdiction, so your return splits the tax correctly.
Upstate and downstate rates side by side
The split is wide. Every county in the MCTD area carries the extra 0.375%, which is why Nassau, Suffolk, Westchester and the city all sit between 8.375% and 8.875%. Most upstate counties are at 8%, and a few, such as Saratoga, Warren and Washington counties, are at 7%. A seller in Saratoga Springs delivering to Manhattan charges the Manhattan rate, not the local 7%.
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Common New York sales tax mistakes
- Charging your own county's rate on deliveries elsewhere in the state.
- Adding the 0.375% MCTD tax on top of a rate that already includes it.
- Looking up rates by ZIP code.
- Assuming a service is taxable, or not, without checking. Most are exempt, but some are taxed.
If you also have staff in the state, my New York minimum wage page covers the wage rates by region.
My verdict
New York's 4% is only the start, and the number that matters is the one at the delivery address. Use the department's lookup rather than ZIP codes, don't double-count the MCTD tax, and register 20 days before you open. Get those three right and you've handled the parts of New York sales tax that trip up most small sellers.
Frequently asked questions
What is the sales tax rate in New York State?
The state rate is 4% as of October 2026. Local taxes bring combined rates to between 7% and 8.875%.
What is the sales tax in New York City?
The combined rate in New York City is 8.875%, which includes the 0.375% Metropolitan Commuter Transportation District tax.
Is New York sales tax based on the seller's or the buyer's location?
Where the buyer takes delivery. New York's sales tax is a destination tax, and sales delivered outside the state are exempt.
Are services taxable in New York?
Services are generally exempt unless specifically taxable, while goods are taxable unless specifically exempt.
Do out-of-state sellers have to collect New York sales tax?
Yes, if in the last four sales tax quarters they sold over $500,000 of goods delivered into New York and made more than 100 sales.
