What is the sales tax rate in New York?

New York State has a base sales tax rate of 4%. Counties and cities add their own rates on top of the state rate. The combined rate varies by location — New York City has a combined rate of 8.875% (4% state + 4.5% city/county). Most other New York counties have combined rates between 7% and 8.75%. The exact rate depends on the county and, in some cases, the city where the sale takes place.

What is the sales tax rate in New York City?

New York City has a combined sales tax rate of 8.875%. This consists of the 4% New York State rate plus a 4.5% New York City rate plus a 0.375% Metropolitan Commuter Transportation District (MCTD) surcharge. The MCTD surcharge applies to sales in the five boroughs and several surrounding counties.

Which rate applies — the rate where the seller is located or where the buyer is?

For most sales of tangible personal property in New York, the rate that applies is the rate at the point of delivery — where the customer receives the goods. If you deliver goods to a customer in Queens, you charge the New York City rate. If you deliver to a customer in Nassau County, you charge the Nassau County rate. For services, the rate generally applies where the service is performed.

New York Sales Tax Rates: State, County, and City

How New York's sales tax rate is structured

New York's sales tax is a combination of rates imposed at different levels of government. Every taxable sale in New York includes:

New York State rate: 4% — applies statewide on all taxable sales
County rate: set by each county, typically 3–4.75%
City rate: some cities impose an additional rate on top of the county rate
MCTD surcharge: 0.375% — applies in New York City and several surrounding counties in the Metropolitan Commuter Transportation District

The combined rate is the sum of all applicable rates. When you collect sales tax from a customer, you collect the full combined rate — then remit the state and local portions separately through your New York sales tax return.

The Short Answer

The rate that applies to a sale is determined by the location where the customer receives the goods — not where your business is located. If you deliver to multiple counties, you may be charging different rates to different customers.

Key rates by area

New York City (all five boroughs)

The combined rate in New York City is 8.875%:

New York State: 4%
New York City: 4.5%
MCTD surcharge: 0.375%

This rate applies in Manhattan, Brooklyn, Queens, the Bronx, and Staten Island.

Nassau and Suffolk Counties (Long Island)

Nassau County has a combined rate of 8.625% (4% state + 4.25% county + 0.375% MCTD). Suffolk County has a combined rate of 8.625% as well, though the county portion differs slightly. Both are in the MCTD.

Westchester County

Westchester County has a combined rate of 8.375% (4% state + 4% county + 0.375% MCTD). Some cities within Westchester, such as Yonkers, impose an additional city rate that brings the combined rate higher.

Upstate New York

Most upstate counties have combined rates between 7% and 8.75%. The MCTD surcharge does not apply outside the metropolitan area. Examples: Albany County 8%, Erie County (Buffalo) 8.75%, Monroe County (Rochester) 8%.

Hypothetical Example

Example: Delivery to multiple locations. A Queens-based retailer sells goods online and ships to customers across New York. A delivery to a customer in Queens is taxed at 8.875%. A delivery to a customer in Albany is taxed at 8%. A delivery to a customer in Buffalo is taxed at 8.75%. The retailer must track the delivery location for each sale and apply the correct rate — and remit the appropriate local portion to each jurisdiction through the New York sales tax return.

Which rate applies to your sale

For sales of tangible personal property, the rate is determined by the point of delivery — where the customer takes possession of the goods. This is called the destination-based sourcing rule.

Customer picks up at your location: use the rate for your location
You deliver to the customer: use the rate for the delivery address
Shipped via common carrier: use the rate for the destination address

For services, the sourcing rules are more complex and depend on the type of service. Generally, services are taxed where they are performed or where the benefit is received.

The Short Answer

New York's sales tax return (Form ST-100 or ST-101) requires you to report sales broken down by county. Your point-of-sale system or accounting software should track the delivery location for each transaction so you can file accurately.

Where to find current rates

Sales tax rates can change when counties or cities vote to adjust their local rates. The New York State Department of Taxation and Finance publishes Publication 718, which lists the current combined rates for every county and major city in New York. Check the current version before filing, especially if you sell in multiple jurisdictions.

The Department also provides a sales tax rate lookup tool on its website where you can enter an address and get the current combined rate for that location.

Sources

This article is for educational purposes only and does not constitute personalized tax, legal, or financial advice. Tax rules are complex and depend on your specific facts and circumstances. Consult a qualified CPA or tax professional before making decisions.

Gurmeet Singh, CPA

Founder & Managing Partner, Meet GS Tax

Gurmeet Singh is a licensed Certified Public Accountant born and raised in New York. He holds an accounting degree from Clemson University and founded Meet GS Tax to provide CPA-led tax planning, business taxation, and bookkeeping services to business owners, independent professionals, and high earners.

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