New York sales and use tax, NYS DTF filings, NYC sales tax, New York exemptions, New York clothing exemption, New York nexus, or any request involving New York state sales and use tax compliance.
New York · tax year 2026 · changed 3 Nov 2026
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| Field | Value |
|---|---|
| Jurisdiction | New York, United States |
| Jurisdiction code | US-NY |
| Tax type | Sales and Use Tax (state + local) |
| State rate | 4.00% |
| Local rate range | 3.00% -- 4.875% |
| MCTD surcharge | 0.375% (Metropolitan Commuter Transportation District) |
| Maximum combined rate | 8.875% (New York City) |
| Sourcing | Destination-based |
| Economic nexus | $500,000 revenue AND 100 transactions (AND test -- both must be met) |
| Nexus test type | AND test -- unique among states; most use OR |
| Measurement period | Prior four sales tax quarterly periods (NOT calendar year) |
| Primary legislation | New York Tax Law, Articles 28 and 29 |
| Tax authority | New York State Department of Taxation and Finance (NYS DTF) |
| Filing portal | https://www.tax.ny.gov |
| SST member | No |
| Return form | ST-100 (quarterly); ST-810 (monthly); ST-809 (part-quarterly) |
| Quarterly periods | March-May, June-August, September-November, December-February (NOT calendar quarters) |
| Quarterly deadline | 20th of month following quarter end |
| Vendor discount | Up to 5% of first $1,200,000 collected per quarter; max $200/quarter |
| Federal framework skill | us-sales-tax |
| Skill version | 2.0 |
General reference only. This skill is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for any specific person's facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction.
| Field | Value |
|---|---|
| Jurisdiction | New York, United States |
| Jurisdiction code | US-NY |
| Tax type | Sales and Use Tax (state + local) |
| State rate | 4.00% |
| Local rate range | 3.00% -- 4.875% |
| MCTD surcharge | 0.375% (Metropolitan Commuter Transportation District) |
| Maximum combined rate | 8.875% (New York City) |
| Sourcing | Destination-based |
| Economic nexus | $500,000 revenue AND 100 transactions (AND test -- both must be met) |
| Nexus test type | AND test -- unique among states; most use OR |
| Measurement period | Prior four sales tax quarterly periods (NOT calendar year) |
| Primary legislation | New York Tax Law, Articles 28 and 29 |
| Tax authority | New York State Department of Taxation and Finance (NYS DTF) |
| Filing portal | https://www.tax.ny.gov |
| SST member | No |
| Return form | ST-100 (quarterly); ST-810 (monthly); ST-809 (part-quarterly) |
| Quarterly periods | March-May, June-August, September-November, December-February (NOT calendar quarters) |
| Quarterly deadline | 20th of month following quarter end |
| Vendor discount | Up to 5% of first $1,200,000 collected per quarter; max $200/quarter |
| Federal framework skill | us-sales-tax |
| Skill version | 2.0 |
CRITICAL: New York sales tax quarters do NOT align with calendar quarters. They start March 1.
| # | Question | Why it matters |
|---|---|---|
| 1 | Certificate of Authority number? | Required for filing; confirms NYS DTF registration |
| 2 | Assigned filing frequency (quarterly, monthly/part-quarterly, annual, PrompTax)? | Determines due dates and payment schedules |
| 3 | Nexus type (physical, economic, both)? | NY requires BOTH $500K AND 100 transactions |
| 4 | Sell through marketplace facilitators? | Marketplace facilitators collect on facilitated sales |
| 5 | Make sales in MCTD (NYC, Rockland, Westchester, Dutchess, Orange, Putnam, Nassau, Suffolk)? | 0.375% MCTD surcharge; separate schedule ST-100.3 |
| 6 | Sell clothing or footwear? | Items under $110/item exempt from state and NYC tax |
| 7 | Annual sales tax liability over $500,000? | PrompTax (accelerated EFT) may be required |
| 8 | Sell software, SaaS, or digital products? | SaaS taxable in NY as pre-written software |
R-NY-1 -- Film production credit purchases. Empire State Film Production tax exemptions require qualifying certificates from Empire State Development. Escalate to reviewer.
R-NY-2 -- Real property capital improvement vs. repair. The distinction between exempt capital improvements and taxable repairs requires professional judgment. Escalate to reviewer.
| Pattern | Taxable? | Notes |
|---|---|---|
| General TPP (electronics, appliances, furniture, equipment) | TAXABLE | Tax Law Section 1105(a) |
| Pattern | Taxable? | Notes |
|---|---|---|
| Clothing/footwear under $110 per item | EXEMPT | State and NYC local tax exempt; per-ITEM threshold, NOT per transaction |
| Clothing/footwear $110 or more per item | TAXABLE | Full combined rate applies |
| Costume accessories (cuff links, tiara) | TAXABLE | Not qualifying clothing |
| Sport/recreational equipment (ski boots, cleats) | TAXABLE | Not qualifying clothing |
| Protective equipment (hard hats, safety goggles) | TAXABLE | Not qualifying clothing |
The clothing exemption is PERMANENT and year-round. New York does NOT have a temporary sales tax holiday.
Non-NYC counties: Some counties do NOT exempt clothing from local tax. Verify county-specific rules for non-NYC locations.
| Pattern | Taxable? | Citation |
|---|---|---|
| Grocery food (unprepared, for home consumption) | EXEMPT | Tax Law Section 1115(a)(1) |
| Prepared food (heated, served on-premises) | TAXABLE | Tax Law Section 1105(d) |
| Candy and confections | TAXABLE | Tax Law Section 1115(a)(1) exception |
| Carbonated beverages / soft drinks | TAXABLE | Tax Law Section 1115(a)(1) exception |
| Bottled water (non-carbonated) | EXEMPT | |
| Dietary supplements | EXEMPT | |
| Alcoholic beverages | TAXABLE | |
| ALL food/drink sold by restaurants | TAXABLE | Restaurant context overrides grocery exemption |
Restaurant rule: ALL food and drink sold by restaurants becomes TAXABLE, including otherwise exempt items like bottled water. Tax Law Section 1105(d).
| Pattern | Taxable? | Notes |
|---|---|---|
| Canned software (any delivery method) | TAXABLE | Tax Law Section 1101(b)(6) |
| Custom software (any delivery) | EXEMPT | Not TPP |
| SaaS (cloud-hosted, no download) | TAXABLE | Pre-written software accessed remotely; TSB-A-13(22)S |
| Digital music, movies, books (download) | TAXABLE | TPP equivalents |
| Streaming services | TAXABLE | Information service or entertainment |
New York clearly taxes SaaS as a sale of pre-written computer software.
| Pattern | Taxable? | Citation |
|---|---|---|
| Information services | TAXABLE | Tax Law Section 1105(c)(1) |
| Processing and printing | TAXABLE | Tax Law Section 1105(c)(2) |
| Installation, maintenance, repair of TPP | TAXABLE | Tax Law Section 1105(c)(3) |
| Storage | TAXABLE | Tax Law Section 1105(c)(4) |
| Interior decorating/design | TAXABLE | Tax Law Section 1105(c)(5) |
| Protective/detective services | TAXABLE | Tax Law Section 1105(c)(6) |
| Trash removal (commercial) | TAXABLE | Tax Law Section 1105(c)(7) |
| Credit rating/reporting | TAXABLE | Tax Law Section 1105(c)(8) |
| Telephone/telegraph services | TAXABLE | Tax Law Section 1105(b)(1) |
| Professional services (legal, accounting, medical, consulting) | NOT TAXABLE | Not enumerated |
| Advertising | NOT TAXABLE | |
| Education | NOT TAXABLE | |
| Janitorial / personal care | NOT TAXABLE |
| Pattern | Taxable? | Citation |
|---|---|---|
| Manufacturing equipment (directly and predominantly 50%+ in production) | EXEMPT | Tax Law Section 1115(a)(12) |
| Fuel/utilities for manufacturing | EXEMPT | Tax Law Section 1115(c) |
| Farm equipment | EXEMPT | Tax Law Section 1115(a)(6) |
| Resale (valid ST-120) | EXEMPT | Tax Law Section 1101(b)(4) |
| Interstate commerce (shipped out of state) | EXEMPT | Tax Law Section 1115(a)(8) |
| Federal government sales | EXEMPT | Tax Law Section 1116(a)(1) |
| Prescription drugs | EXEMPT | Tax Law Section 1115(a)(3) |
| OTC drugs | TAXABLE | No OTC exemption in NY |
| Newspapers and periodicals | EXEMPT | Tax Law Section 1115(a)(5) |
| Jurisdiction | Combined rate | Breakdown |
|---|---|---|
| New York City (5 boroughs) | 8.875% | 4% state + 4.5% city + 0.375% MCTD |
| Westchester County | 8.375% | 4% + 4% + 0.375% MCTD |
| Nassau County | 8.625% | 4% + 4.25% + 0.375% MCTD |
| Suffolk County | 8.625% | 4% + 4.25% + 0.375% MCTD |
| Albany County | 8.00% | 4% + 4% |
| Erie County (Buffalo) | 8.00% | 4% + 4% |
NYC, Rockland, Westchester, Dutchess, Orange, Putnam, Nassau, Suffolk -- 0.375% surcharge applies in all.
| Scenario | Rate applied |
|---|---|
| Shipped goods | Delivery address rate |
| Customer pickup | Seller's location rate |
| Remote sellers | Destination-based |
New York taxes: (a) retail sales of TPP, (b) enumerated services, (c) restaurant food/drink, (d) hotel occupancy, (e) admissions. Tax Law Section 1105.
The $110 exemption is per ITEM, not per transaction. A $109 shirt and a $115 jacket in the same transaction: shirt is exempt, jacket is taxable.
All food at restaurants is taxable regardless of individual item exemption status. A bottle of water at a grocery store is exempt; the same bottle at a restaurant is taxable.
| Form | Use |
|---|---|
| ST-100 | Quarterly return |
| ST-100.3 | MCTD schedule |
| ST-100.7 | Sub-jurisdiction detail |
| ST-810 | Monthly return (large filers) |
| ST-809 | Part-quarterly monthly payment |
| ST-120 | Resale certificate |
| ST-119/ST-119.1 | Exempt organization certificates |
| ST-124 | Capital improvement certificate |
| Quarter | Period | Due date |
|---|---|---|
| Q1 | March 1 -- May 31 | June 20 |
| Q2 | June 1 -- August 31 | September 20 |
| Q3 | September 1 -- November 30 | December 20 |
| Q4 | December 1 -- February 28/29 | March 20 |
| Parameter | Value |
|---|---|
| Threshold | Annual liability > $500,000 |
| Method | EFT within 3 business days of each PrompTax period |
| Returns | Still filed quarterly |
| Parameter | Value |
|---|---|
| Revenue threshold | $500,000 gross receipts from TPP delivered in NY |
| Transaction threshold | 100 transactions delivering TPP in NY |
| Test type | AND -- BOTH must be met |
| Measurement period | Prior four sales tax quarterly periods |
| Marketplace exclusion | Marketplace sales do not count |
| Authority | Tax Law Section 1101(b)(8)(iv) |
| Rule | Detail |
|---|---|
| Effective date | June 1, 2019 |
| Facilitator treated as | Vendor for tax purposes |
| Authority | Tax Law Section 1101(b)(8)(vi) |
| Penalty | Rate | Citation |
|---|---|---|
| Late filing | 10% of tax due (max) | Tax Law Section 1145(a)(1) |
| Late payment | 10% of tax due (max) | Tax Law Section 1145(a)(1) |
| Fraud | 50% of deficiency | Tax Law Section 1145(a)(2) |
| Interest | Set quarterly by DTF | Tax Law Section 1142 |
| Parameter | Value |
|---|---|
| Period | 3 years from due date or filing date (whichever later) |
| Statute of limitations (standard) | 3 years |
| No return filed | No limitation |
| Fraud | No limitation |
| 25%+ understatement | 6 years |
Situation: Customer buys $109 shirt and $115 jacket. Resolution: Shirt ($109) is EXEMPT. Jacket ($115) is TAXABLE at full rate. Per-item, not per-transaction.
Situation: Business subscribes to cloud-based CRM (no download). Resolution: TAXABLE. NY treats SaaS as pre-written software. TSB-A-13(22)S.
Situation: Customer orders bottled water at a restaurant. Resolution: TAXABLE. Restaurant context overrides the grocery food exemption.
Situation: Out-of-state seller: $600K revenue, 80 transactions. Resolution: No nexus. Revenue exceeds $500K but transactions (80) do not exceed 100. NY requires BOTH.
Situation: Vendor in Saratoga County asks about clothing exemption on local tax. Resolution: State exemption (under $110) applies statewide. Some counties may not exempt local tax. Verify county-specific rules.
Situation: Contractor performs work on a building. Resolution: Capital improvements (Form ST-124) are EXEMPT. Repairs are TAXABLE under Section 1105(c)(3). Requires professional judgment.
Input: $95 shoes in Manhattan. NYC rate: 8.875%. Expected: Tax = $0. Clothing under $110 exempt.
Input: $200 jacket in Manhattan. Expected: Tax = $17.75. Full rate applies.
Input: $100 groceries (bread, milk, produce) from a supermarket. Expected: Tax = $0.
Input: $100/month SaaS tool. NYC rate 8.875%. Expected: Tax = $8.88. SaaS is taxable.
Input: $600K revenue, 80 transactions. Expected: NO nexus. Both thresholds not met.
Input: $600K revenue, 150 transactions. Expected: HAS nexus. Both exceeded.
Input: $50 dinner at NYC restaurant. Expected: Tax = $4.44. All restaurant food taxable.
Input: $200K machine for production. Erie County rate: 8%. Expected: Tax = $0. Manufacturing exemption.
Input: NYC business buys $5,000 furniture from NH retailer. No tax collected. Expected: Use tax = $443.75.
Input: Retailer purchases $10K inventory. Valid ST-120 provided. Expected: No tax. Retailer collects at resale.
This skill is provided for informational and computational purposes only and does not constitute tax, legal, or financial advice. All outputs must be reviewed by a qualified professional (CPA, EA, or tax attorney) before filing.
This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.
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