New York Sales Tax and Use Tax
What is the New York sales tax?
Taxes in New York are destination-based, meaning the New York sales tax rate is based, or determined from, the destination location an item is shipped to. This complicates business for retailers who need to have the exact and up-to-date sales tax rate for every shipment they make.
To see a full breakout of New York sales tax rates by state, county, city and special district, use our easy New York sales tax calculator. After putting in any ZIP code, you can enter a retail price to calculate New York sales tax totals.
What is the New York use tax?
The New York state use tax rate is the same as the state, county, city and special district rates.
If you reside in NY, use tax is due to the state on any and all transactions where sales tax has not been paid, even out-of-state internet sales.
Who has to pay New York sales tax or use tax?
In general, a business must collect and remit all applicable New York sales taxes if that business has nexus, a physical presence such as a brick-and-mortar location, within a given state. The presence of an employee or salesperson, delivery by the seller's vehicle, and storage of materials usually establishes nexus as well.
New York says that an out-of-state seller is required to collect tax if they can be defined as a "vendor". New York has certain additional laws establishing nexus for other reasons such as out-of-state businesses using in-state affiliates, advertisers or vendors, or businesses that make internet sales or mail catalogs.
If you are not sure if you have established nexus in New York, you can usually get free help by contacting the New York Department of Taxation. Click here for an updated listing of direct phone numbers. You could also contact a qualified certified public accountant or lawyer who specializes in tax law in New York. Click here for listing of recommended resources.
Special rules applying to New York sales tax and use taxes
- Shipping is taxable.
- Finance charges are exempt from sales tax.
- Clothing is tax exempt in certain jurisdictions at specific dollar values. For more information, check out our special New York State clothing exemptions table at http://www.zip2tax.com/z2t_services.asp#ny_clothing.
- New York Sales tax holidays are not planned for this state .
Since New York legislators can vote to change the New York sales tax and use tax rates at any time, it is very difficult for individuals to keep track of the changes. The population of NY state is also rapidly changing, which can cause frequent updates to the ZIP codes and local municipality names and complicates the job of keeping track of New York sales tax jurisdictions.