Key takeaways
- New York sales tax rates: The state rate is 4%, plus county and city taxes and a 0.375% MCTD surcharge, for combined rates up to 8.875% in New York City.
- Economic nexus: Remote sellers have nexus only if they had more than $500,000 in gross receipts and 100 or more transactions in the preceding four sales-tax quarters. Both conditions must be met.
- Filing & penalties: Returns are due on the 20th of the month after the period, with quarterly filing as the default. Late filing or payment costs 10% for the first month plus 1% per additional month, up to 30% (minimum $50).
New York sales tax key facts (2026)
| Item | New York |
|---|---|
| Statewide rate | 4% |
| Combined rate range | Up to 8.875% (NYC) |
| MCTD surcharge | 0.375% (metro commuter district) |
| Economic nexus threshold | $500,000 AND 100 transactions (both required) |
| Sourcing | Destination-based |
Collect and file New York sales tax with Taxually: LumaTax monitors your nexus, registers you and files your returns.
Is SaaS taxable?
Yes.
| Item | New York |
|---|---|
| Groceries / clothing | Exempt; clothing under $110 exempt |
| Return due date | 20th of the month after the period |
| Governing agency | NY Department of Taxation and Finance |
What is the sales tax rate in New York?
New York’s statewide sales and use tax rate is 4%. County and city taxes are added on top, and sales within the Metropolitan Commuter Transportation District (MCTD) carry an extra 0.375%. Combined rates reach up to 8.875% (New York City: 4% state + 4.5% city + 0.375% MCTD).
Look up a specific rate on the New York Jurisdiction/Rate Lookup.
Do you have sales tax nexus in New York?
Nexus is the connection that obligates your business to collect and remit New York sales tax. You can establish it two ways — physically or economically.
Physical nexus
You have physical nexus if you have a tangible presence in New York, such as:
- An office or physical place of business in New York
- Employees or representatives in the state
- Owning or renting property (including inventory) in New York
- Delivering goods using business-owned vehicles
- Engaging independent contractors or representatives in the state
Economic nexus
New York uses a dual test: an out-of-state seller has economic nexus only if, in the immediately preceding four sales-tax quarters, it had more than $500,000 in gross receipts from New York sales AND made 100 or more separate transactions. Both conditions must be met — meeting just one doesn’t create nexus (New York’s thresholds are among the highest in the country).
What is taxable in New York?
Most tangible personal property is taxable, with exceptions including most groceries, medicine, medical devices, and certain clothing and footwear under $110. Some services are taxable as well.
Is SaaS taxable in New York?
Yes. New York taxes SaaS — access to or use of prewritten software is treated as a taxable sale of tangible personal property, regardless of delivery method.
How is food taxed in New York?
Most groceries are exempt. Prepared food — heated, ready-to-eat, or consumed on the seller’s premises — is taxable. Clothing and footwear under $110 per item are exempt from the state 4% tax (and from local tax in some jurisdictions).
How to register for a New York sales tax permit
Obtain a Sales Tax Certificate of Authority before collecting (it must be displayed at your business location). Taxually can register for you, or you can apply through the New York Business Express portal — submit at least 20 days before you start operating. Registration is free.
Have ready: general business details including your EIN or SSN, and your business location(s) — you need a certificate for each New York location.
How to collect sales tax in New York
New York is destination-based — collect the combined state, county, city, and MCTD rate for the buyer’s location. For example, deliveries into New York City are taxed at 8.875%. Out-of-state sellers with nexus collect the same way.
Filing and paying New York sales tax
Quarterly filing is the default. You’re moved to monthly (“part-quarterly”) filing if you have more than $300,000 in taxable sales in a quarter, and may file annually if you owe less than $3,000 a year. Returns are due the 20th of the month following the reporting period (New York’s quarters end February, May, August, and November).
File and pay through the New York Department of Taxation and Finance online portal. Taxually’s software automates the full process.
Penalties for late or non-compliant filing
Failing to file or pay on time triggers these penalties:
- Late filing/payment: 10% of the tax due for the first month plus 1% per additional month, up to 30% (minimum $50).
- Failure to file with no tax due: a $50 penalty.
- Interest accrues on unpaid tax at the current rate.
Frequently asked questions
What is the sales tax rate in New York in 2026?
The state rate is 4%; with local and MCTD taxes, combined rates reach up to 8.875% (New York City).
What is the economic nexus threshold for New York?
More than $500,000 in gross receipts AND 100 or more transactions in the preceding four sales-tax quarters. Both conditions must be met.
Is SaaS taxable in New York?
Yes. New York taxes SaaS as access to prewritten software.
Are groceries and clothing taxed in New York?
Most groceries are exempt, and clothing/footwear under $110 is exempt from the state tax. Prepared food is taxable.
When are New York sales tax returns due?
The 20th of the month following the reporting period; quarterly is the default schedule.
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