New York has one of the most complex sales tax systems in the United States. In addition to the statewide sales tax, counties and cities can impose their own local taxes, resulting in different tax rates depending on where your customer is located. If you sell taxable goods or services in New York, you may be required to register, collect, and remit sales tax.
Whether you operate a local business in New York, sell through your own ecommerce website, or are an out-of-state seller that has exceeded New York’s economic nexus threshold, understanding your obligations is essential to remaining compliant.
New York Sales Tax at a Glance (2026)
| Topic | Key Information |
| State sales tax | 4% |
| Local sales taxes | Yes – varies by county and city |
| Economic nexus | More than $500,000 in sales and 100 transactions |
| Sales tax permit required | Yes (Certificate of Authority) |
| Filing frequency | Quarterly, monthly or annually |
| Registration | New York Business Express (Certificate of Authority) |
When Do You Have Sales Tax Nexus in New York?
You generally have sales tax nexus if your business:
- Has a storefront, office, warehouse, employees, or inventory in New York.
- Uses a third-party fulfilment centre located in New York.
- Exceeds $500,000 in sales and 100 separate sales transactions into New York during the previous four sales tax quarters.
If you meet any of these conditions, you’ll generally need to register and begin collecting New York sales tax.
What Is Taxable in New York?
Most tangible personal property sold in New York is taxable.
Examples include:
- Electronics
- Furniture
- Appliances
- Sporting goods
- Household items
- Digital products in certain circumstances
Common exemptions include:
- Most grocery food
- Prescription medications
- Certain medical equipment
- Many clothing and footwear purchases costing less than $110 per item or pair, although local rules can vary.
Most professional services are not subject to New York sales tax, although certain specified services remain taxable.
How to Register for a New York Certificate of Authority
Businesses with nexus must register before making taxable sales.
Registration is completed online through New York Business Express.
- Complete your online application.
- Provide your EIN and business information.
- Receive your Certificate of Authority.
- Begin collecting sales tax.
There is no fee to obtain a Certificate of Authority. Businesses should register at least 20 days before making taxable sales in New York.
New York Sales Tax Rates
New York has a 4% statewide sales tax, but customers usually pay a higher combined rate because counties and cities can impose additional local taxes.
For example:
- New York City has a combined rate of 8.875%.
- Other counties apply different local rates.
Because local rates vary, businesses should always determine the correct rate based on the customer’s delivery location.
New York generally uses destination-based sourcing. This means sales tax is calculated based on where the customer receives the product, not where the seller is located. Using automated sales tax software can help businesses apply the correct combined state and local rate.
Filing Requirements
Collecting sales tax is only half the job. You must file returns and remit the collected tax to the Collecting sales tax is only part of your responsibility. You must also file sales tax returns and remit the tax you’ve collected to the New York State Department of Taxation and Finance.
Your filing frequency is assigned when you register and is based on your expected sales tax liability and will either be:
- Monthly
- Quarterly
- Annually
The Department of Taxation and Finance will notify you of your assigned filing frequency after registration. If your sales volume changes significantly, your filing frequency may be adjusted. Businesses must file every required return, even if no sales tax is due during the reporting period. These are known as zero returns, and failing to file them can still result in penalties.
Marketplace Facilitator Rules
Marketplace facilitators such as Amazon, Etsy, eBay and Walmart Marketplace generally collect and remit New York sales tax on marketplace sales. If you also sell through your own website or directly to customers, you’re responsible for collecting tax on those sales if you have nexus.
New York Sales Tax Compliance Checklist
- Determine whether you have physical or economic nexus.
- Register for a Certificate of Authority before making taxable sales.
- Charge the correct combined state and local sales tax rate.
- Keep exemption certificates where applicable.
- File every required return, including zero returns.
- Maintain accurate sales and tax records.
- Regularly monitor your New York sales to ensure ongoing compliance.
FAQs
What is the sales tax rate in New York?
New York has a 4% state-wide sales tax, with additional local taxes that vary by county and city.
What is the economic nexus threshold in New York?
You generally establish economic nexus if you exceed $500,000 in sales and 100 separate transactions into New York during the previous four sales tax quarters.
Do I need a Certificate of Authority?
Yes. Businesses with sales tax nexus must obtain a Certificate of Authority before making taxable sales.
Do marketplaces collect New York sales tax?
Yes, Amazon, Etsy, eBay, Walmart Marketplace, and other marketplace facilitators generally collect and remit sales tax on marketplace sales.
Are clothing sales taxable in New York?
Many clothing and footwear purchases costing less than $110 per item or pair are exempt from New York state sales tax, although local tax rules may differ.
Final Thoughts
New York’s sales tax system combines a statewide rate with local taxes, making compliance more complex than in many other states. Businesses must determine whether they have nexus, apply the correct combined tax rate, and file returns on time to avoid penalties.
Whether you’re an ecommerce seller, marketplace retailer, or expanding business, understanding New York’s sales tax rules can help you stay compliant and avoid costly mistakes.
Need help with New York sales tax registration, filings, or compliance? Contact our tax professionals today.
