New York City sales tax guide
Shopping in New York City means paying one of the higher combined sales tax rates in New York: 8.875%, against a statewide average combined rate of 8.53%. Among the 30 major US cities we track, New York City ranks 8 by combined rate. This guide shows how the rate is built and what it adds to real purchases.
How the New York City rate is built
4.00% state + 4.50% city + 0.375% Metropolitan Commuter Transportation District. Groceries are exempt, and clothing and footwear under $110 per item are exempt from the state and city tax.
No single government sets the 8.875% figure. The state of New York sets the base rate of 4%, and county, city and special-district taxes stack on top of it. That stacking is why the rate can change across a city boundary — and why the address of the sale, not the seller's home address, decides the tax on most transactions.
What the rate does to real purchases
| Purchase | Tax at 8.875% | Total |
|---|---|---|
| $25 purchase | $2.22 | $27.22 |
| $100 purchase | $8.88 | $108.88 |
| $500 purchase | $44.38 | $544.38 |
| $1,000 purchase | $88.75 | $1,088.75 |
| $10,000 purchase | $887.5 | $10,887.5 |
| $35,000 car (where vehicles are taxed at sale) | $3,106.25 | $38,106.25 |
Groceries: Groceries are exempt from state tax; some counties tax certain items. Clothing under $110 is exempt from the state portion (NYC fully exempts it). Prepared food and restaurant meals are taxed at the full rate in most jurisdictions, even where groceries for home consumption are exempt or reduced.
New York City vs other major US cities
New York City is the New York city we track in detail. Set against the extremes of the 30-city dataset (average 7.93%), its position is clear:
| City | Combined rate | Tax on $1,000 |
|---|---|---|
| New York City (this guide) | 8.875% | $88.75 |
| Seattle — among the highest | 10.35% | $103.5 |
| Chicago — among the highest | 10.25% | $102.5 |
| Portland — among the lowest | 0% | $0 |
| Louisville — among the lowest | 6% | $60 |
What this means in New York City
On planned purchases the rate is a line item, not a rounding error: $887.5 on $10,000, which is $34.5 more than the same purchase at the New York average rate. Households near a lower-rate city boundary sometimes route vehicles, appliances and furniture purchases accordingly; on weekly spending, the difference is a few dollars a month and rarely worth a trip.
Selling in New York City
If your business delivers into New York City, the rate your customer pays is generally the combined rate at their address. Once your New York sales pass the state's economic-nexus threshold you must register, collect and remit — the threshold and filing basics are covered on the New York City sales tax page, and the statewide picture is in the New York tax guide.
Sales tax · combined rate
Property tax · average effective
Chart: DailyFinance.tools · Rates are reviewed averages from our state tax dataset — your exact local rate may differ.
New York City sales tax FAQs
What is the sales tax rate in New York City?
The combined sales tax rate in New York City is approximately 8.875%, made up of the New York state rate plus county, city and district taxes. 4.00% state + 4.50% city + 0.375% Metropolitan Commuter Transportation District. Groceries are exempt, and clothing and footwear under $110 per item are exempt from the state and city tax.
How much tax do I pay on a $100 purchase in New York City?
At 8.875%, a $100 taxable purchase in New York City carries about $8.88 in sales tax, for a total of $108.88. On $1,000 the tax is $88.75; on $10,000 it is $887.5.
Why is the New York City rate different from the rest of New York?
Sales tax is stacked: the state sets a base rate and local governments add their own. New York City adds local layers that bring the combined rate to 8.875%, compared with a statewide average combined rate of about 8.53% — a gap of 0.35 points.
How does New York City compare with other US cities?
New York City ranks 8 of the 30 major cities in our dataset by combined rate (dataset average 7.93%). The highest is Seattle at 10.35% and the lowest is Portland at 0%. Against the all-state average combined rate of 6.61%, New York City is 2.26 points higher.
Are groceries taxed in New York City?
Groceries are exempt from state tax; some counties tax certain items. Clothing under $110 is exempt from the state portion (NYC fully exempts it).
Where can I verify the exact rate for a New York City address?
The 8.875% figure is the typical combined rate inside city limits; district taxes can shift it block by block. Verify the rate for a specific address with the New York Department of Revenue before a major purchase or a filing.
Reviewed by Tahir Shehzad, ACMA · State tax data reviewed November 2026 against official sources — see our Methodology and Editorial Policy. Figures are educational estimates, not tax or financial advice. For a filing decision, confirm with the New York Department of Revenue.