New York sales tax is a 4% statewide tax plus a local rate set by the county or city where the sale takes place. For most Long Island businesses, that means a combined rate of 8.625% in Nassau County or 8.75% in Suffolk County. In New York City, it's 8.875%.
If you sell taxable goods or services in New York, you're responsible for registering, charging the right rate, filing on schedule, and keeping records that hold up if the state ever asks. This guide walks through each step in plain English, with the current rates, filing deadlines, and the exemptions that trip up business owners most often.
The New York State sales tax rate is 4%. Every county and some cities add their own local rate on top of it. Businesses in the Metropolitan Commuter Transportation District (MCTD), which includes New York City and Nassau and Suffolk counties, also collect an extra 0.375%.
Here are the combined rates for the areas we work with most, per the state's Publication 718:
Location | State rate | Local rate | MCTD | Combined rate |
Nassau County | 4% | 4.25% | 0.375% | 8.625% |
Suffolk County | 4% | 4.375% | 0.375% | 8.75% |
New York City (all five boroughs) | 4% | 4.5% | 0.375% | 8.875% |
New York State only | 4% | — | — | 4% |
Suffolk County business owners, take note: Suffolk's combined rate rose from 8.625% to 8.75% on March 1, 2025. If your point-of-sale system or invoicing software still charges 8.625%, you've been under-collecting, and you're on the hook for the difference.
The rate that applies is based on where your customer takes delivery, not where your business is located. A Hauppauge business shipping to a customer in Brooklyn charges the NYC rate. Use the state's Sales Tax Jurisdiction and Rate Lookup when you're unsure, and use the jurisdiction's reporting code (not the ZIP code) on your return.
Yes, if you sell taxable goods or services in New York. You must register with the Department of Taxation and Finance and receive a Certificate of Authority at least 20 days before you begin making taxable sales. You can apply online through NY Business Express.
Don't open your doors early. Operating without a Certificate of Authority can cost you up to $500 for the first day and up to $200 for each day after, to a maximum of $10,000. You also need a separate certificate for each business location, and your certificate must be displayed where customers can see it.
Out-of-state and online sellers aren't off the hook either. A business with no physical presence in New York must register if, in the previous four sales tax quarters, it made more than $500,000 in sales of tangible goods delivered into the state and more than 100 such sales. If you're launching a business, our new business checklist covers registration alongside your other first-year requirements.
Most businesses file quarterly. Your filing frequency depends on your sales volume and how much tax you owe, as outlined in the state's filing requirements bulletin (TB-ST-275):
Quarterly (Form ST-100): The default for most new registrants, as long as taxable sales stay under $300,000 per quarter.
Part-quarterly, or monthly (Forms ST-809 and ST-810): Required starting the month after any quarter in which taxable sales reach $300,000 or more. You stay on monthly filing until you're below $300,000 for four consecutive quarters.
Annual (Form ST-101): For businesses that owe $3,000 or less in sales tax for the year, once the state has notified them they qualify.
One rule surprises a lot of owners: you must file a return for every period you're registered, even if you made no taxable sales. A late "zero" return still carries a $50 minimum penalty.
New York's sales tax quarters don't line up with the calendar year. Returns are due on the 20th day of the month after each period ends:
Sales tax quarter | Period covered | Return due |
Quarter 1 | March 1 – May 31 | June 20 |
Quarter 2 | June 1 – August 31 | September 20 |
Quarter 3 | September 1 – November 30 | December 20 |
Quarter 4 | December 1 – February 28/29 | March 20 |
Annual filers | March 1 – February 28/29 | March 20 |
Monthly filers file Form ST-809 by the 20th of each following month, plus a quarterly ST-810.
Filing on time does more than avoid penalties. Quarterly and annual filers who file and pay in full by the deadline can take a vendor collection credit of 5% of the tax due, up to $200 per return. Miss the deadline and you lose it. Over a year, that's up to $800 left on the table.
New York taxes most sales of tangible goods unless the law specifically exempts them. Services work the other way: they're exempt unless the law specifically taxes them. That distinction is where many businesses get into trouble.
Tangible goods such as furniture, electronics, building materials, and most retail merchandise
Restaurant meals, takeout, and catered food
Repair and maintenance of tangible property, such as appliance or vehicle repairs
Certain services, including landscaping, cleaning and building maintenance, storage, parking, and protective services
Hotel stays and admissions to entertainment venues
New York City also applies its local tax to certain personal services, like beauty, barbering, and gym memberships, under rules described in TB-ST-575.
Most grocery food sold for home consumption
Prescription and nonprescription medicines
Items purchased for resale, when the buyer gives you a properly completed resale certificate (Form ST-120)
Sales to qualifying exempt organizations and government entities, with the proper exemption documentation
Capital improvements to real property, documented with Form ST-124
Clothing and footwear sold for less than $110 per item is exempt from the 4% state tax. But the local exemption depends on where you are, according to Publication 718-C. In New York City, eligible items are fully exempt. In Nassau County, they're still taxed at 4.625%, and in Suffolk County at 4.75%. Long Island retailers who apply the NYC rule by mistake end up under-collecting on every eligible sale.
For full detail on every category, the state's Publication 750: A Guide to Sales Tax in New York State is the most complete official reference.
Use tax is sales tax's counterpart. If your business buys taxable items without paying New York sales tax, such as equipment from an out-of-state online vendor or inventory you pull from stock for your own use, you owe use tax at the same rate. Registered vendors report it directly on their sales tax return. It's one of the first things an auditor checks.
New York expects you to keep sales tax records, including invoices, exemption and resale certificates, and returns, for at least three years. We recommend holding onto them longer; our guide to the 7-year rule for record retention explains why.
Sales tax is a trust fund tax. You collect it on the state's behalf, so owners and officers who are responsible for remitting it can be held personally liable if it isn't paid, even if the business closes. The best protection is clean, consistent bookkeeping. If your records are thin, start with If You Can't Prove It, You Lose It: The Small Business Guide to Recordkeeping.
If the state does come calling, you don't have to handle a sales tax audit alone. Our audit representation team works directly with tax authorities on your behalf.
The combined sales tax rate in New York City is 8.875%. That's the 4% New York State rate, plus NYC's 4.5% local rate, plus the 0.375% MCTD surcharge. The same rate applies in all five boroughs: Manhattan, Brooklyn, Queens, the Bronx, and Staten Island.
Quarterly returns are due June 20, September 20, December 20, and March 20, covering the quarters that end in May, August, November, and February. Annual returns are due March 20, and monthly filers file by the 20th of each following month. If a due date falls on a weekend or holiday, it moves to the next business day.
Yes. If you're registered for sales tax in New York, you must file a return for every period, even if you made no taxable sales. A late zero-sales return still carries a $50 minimum penalty.
Clothing and footwear sold for less than $110 per item are exempt from the 4% state tax. In New York City, they're fully exempt. On Long Island, they're still subject to local tax: 4.625% in Nassau County and 4.75% in Suffolk County. Items priced at $110 or more are taxed at the full combined rate everywhere.
You're responsible for remitting the correct amount, whether or not you collected it from your customer. If you under-collect, the difference typically comes out of your own pocket, plus any penalties and interest. Because sales tax is a trust fund tax, responsible owners and officers can also be held personally liable for unpaid amounts.
Sales tax isn't complicated because the rules are hard to understand. It's complicated because there are so many of them, and they change. One missed rate update, one undocumented exemption, or one late return can turn into real money.
Heritage Accountants & Advisors helps businesses across Long Island and the greater New York metro area register correctly, collect the right rates, file on time, and stay audit-ready, as part of our tax preparation and planning services. Whether you're opening your doors, switching to monthly filing, or just want a second set of eyes on your returns, we're here to help.
Schedule your free consultation or call us at (631) 543-7700.
