We'll also show you how to collect and file sales tax in New York. And if sales tax filing looks like a lot of work, we'll also share a white glove sales tax solution to ensure you stay compliant throughout the entire sales tax lifecycle.
New York Sales Tax Rate Range 2023
New York has a minimum sales tax rate of 4%.
In addition to the state sales tax, counties, cities, and towns can collect local sales tax of up to 4.875%.
For instance, Monticello, a city in Sullivan County, has a sales tax rate of 8.000%. This includes the New York sales tax rate of 4.000% and Sullivan County sales tax rate of 4.000%.
Meanwhile, a few other cities in Sullivan County, like Wurtsboro, impose a special tax rate of 0.38% along with a 4.000% state sales tax and a Sullivan County tax of 3.750%. This brings the total sales tax rate to 8.125%.
Some counties in New York don't impose a county tax rate. Instead, its cities and local governments impose local sales taxes as high as 4.875%.
For example, Flushing in Queens County has a sales tax rate of 8.875%, which is the highest sales tax rate in New York. It consists of a 4.000% New York sales tax rate, a 4.500% local tax imposed by New York City, and a special tax of 0.38%.
How to Calculate Sales Tax in New York
You need to add these rates to calculate tax in New York accurately:
Local tax (also known as county/city tax)
For instance, let's calculate the sales tax rate of Huntington, New York.
New York state sales tax of 4.000%
Suffolk County sales tax of 4.250%
Special tax of 0.375% imposed by Metropolitan Commuter Transportation District.
This brings the total sales tax rate of Huntington to 8.635%.
Sales Tax Rates in New York by County
Let's take a look at the sales tax rate in various New York counties:
St Lawrence County
Next, let's check out how sales tax is collected in New York.
Collecting Sales Tax in New York
Here are the answers to some common questions you may have:
Do I have to Collect New York Sales Tax from Customers?
Retailers who meet these two requirements are required to collect sales tax in New York:
Vendors selling goods and services in New York must register and collect sales tax from New York buyers.
Factors that create sales tax nexus include:
Economic Nexus: When you sell goods worth $500,000 per year in gross revenue and make sales in more than 100 separate transactions in the last 4 quarters.
Physical Location: When you have a warehouse, office, or distribution center.
Employee Location: A company with employees or any other type of representation in New York should pay taxes.
Affiliate Nexus: A taxable sale happens when an out-of-state business receives substantial sales from New York. They must register as a vendor and obtain a Certificate of Authority from the New York State Department of Taxation and Finance.
Trade Shows: Participating in trade shows for more than 14 days and selling goods will create a sales nexus in New York.
Tangible Personal Property: Sales of tangible personal property are subject to New York sales tax unless specifically exempt.
Do I Have to Collect Sales Tax from New York Customers if I Sell on Amazon, Walmart, Ebay, or Etsy?
New York has a marketplace facilitator tax law, which means that marketplaces like Amazon and eBay are required to collect sales tax on behalf of 3rd party sellers on their platforms.
If you have a sales tax nexus in New York, keep in mind that you're still required to collect sales tax on your other non-marketplace New York sales.
Purchases by vendors that are intended for resale, like computer hardware for software development.
Building or installing a capital improvement. A capital improvement is an addition or alteration that adds value to the real property and is intended to be a permanent installation. For example, air cleaners, heaters, installing kitchen cabinets, etc.
Parking service receipts paid to a homeowners' association by its members.
Food and drinks like dairy products, 70-100% non-carbonated natural beverages, unheated coffee and tea.
Medicines, like antibiotics, birth control pills, and medical supplies, like hearing aids.
Feminine hygiene products like sanitary pads and vaginal creams.
Newspapers and periodicals. Periodicals should be published at least four times a year to qualify for sales tax exemption. They should also contain articles related to science, art, sports, etc., be available for public use, and shouldn't constitute a book when the issues are put together.
Property or services used in farming or commercial horseboarding, including fuel and utilities
Sales by funeral homes.
Commercial vessels, like cabs.
Commercial aircraft, certain related property, and fuel. This includes general aviation aircraft and property and services related to their maintenance as well.
Property and utilities used in research and development
US, NY official flags and military service flags, prisoner of war flags, and blue star banners.
Manufacturing of machinery, equipment, and fuel.
But to collect sales tax, you need a sales tax permit. Let's find out how you can get one.
Do I Need a New York seller's Permit if I'm only a Wholesaler?
Yes, you must register for a New York seller's permit even if you only sell products for resale and aren't required to charge sales tax on those sales.
Do I Need a New York Seller's Permit if I Only Sell Temporarily in the State?
Yes, vendors who only make sales in New York on a temporary basis are still required to register for a New York seller's permit. Temporary vendors must indicate the start and end dates over which they will do business in the state.
File and pay through the Promptax program: If you have taxable receipts of more than $500,000 or have an annual liability for prepaid sales tax on motor fuel and diesel motor fuel exceeding $5 million, you may have to participate in the Promptax program. You'll be notified by mail by the Tax Department if you're eligible.
File and pay by mail: You can also file by mailing in a paper form. You'll need to choose the specific form for your filing frequency here. Further, New York requires that most filers file online.
Next, let's find answers to a few FAQs regarding New York sales taxes.
FAQs on Paying and Filing New York Sales Tax
Here are some commonly asked questions and their answers:
What Is Use Tax?
Use tax is imposed on the use of taxable items and services in New York when you don't pay sales tax.
You may have to pay use tax if you use products:
Made outside of New York State
Bought over the Internet from businesses that are located outside of New York State
In a different local taxing jurisdiction in the state from where they were purchased or where they were delivered.
From an inventory to use for your business
That is manufactured, processed, or assembled by your business
I didn't Collect any New York Sales Tax During this Period. Do I still Need to File a Return?
Yes, even if you didn't collect any sales tax, you are required to file a “zero return” to New York on your due date.
Can I Get a Vendor Collection Credit on My New York Sales Tax?
If you pay sales tax on time and have no tax liability, you may be eligible for vendor collection credit.
The vendor collection credit is 5% of the taxes and fees reported on your return. This may come up to a maximum of $200 for each quarterly or annual reporting period.
What Is the Penalty for Filing and/or Paying New York Sales Tax Late?
New York has tiers of penalties when it comes to filing or paying sales tax late:
Filed but did not remit tax due.
10% of the tax due for the first month and 1% for each additional month or part of a month tax is not paid; penalty not to exceed 30% of the tax due.
Omit more than 25% of the taxes required to be shown on the return.
10% of the tax you failed to report.
Fraudulently fail to file or pay sales tax.
Double the amount of tax due, plus interest on the unpaid tax paid at the greater of either 14.5% or a rate set by the Tax Commissioner.
Can I Get an Extension on Filing My New York Sales Tax Return?
Yes, you can request an extension on time to file, but not on time to pay.
How Often will I Be Required to File and Pay Sales tax in New York?
New York will assign you a filing frequency when you register for your seller's permit. New York filing periods are monthly, quarterly, and annually.
You only make wholesale sales but don't plan to collect sales tax
You don't qualify for annual filing; most New York sales tax filers fall into this frequency
Monthly (AKA “Part-Quarterly”)
Your combined amount of taxable sales in New York in any quarter is $300,000 or more
New York Sales Tax Due Dates
New York part quarterly (i.e. monthly) sales tax filing due dates are:
Filing Due Date
February 21, 2023
March 20, 2023
April 20, 2023
May 22, 2023
June 20, 2023
July 20, 2023
August 21, 2023
September 20, 2023
October 20, 2023
November 20, 2023
December 20, 2023
January 22, 2024
Let's take a look at the New York quarterly sales tax filing due dates:
Filing Due Date
Q1 (March-May) 2023
June 20, 2023
Q2 (June-Aug) 2023
September 20, 2023
Q3 (Sept-Nov) 2023
December 20, 2023
Q4 (Dec-Feb) 2023
March 20, 2024
New York annual sales tax filing due dates are:
Filing Due Date
January 20, 2024
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