On this page
The short version
- The state sales tax rate is 4%, plus any local rate imposed by a city, county or school district.
- An extra 0.375% applies to taxable sales in the Metropolitan Commuter Transportation District (MCTD).
- Sellers outside New York have to register when, in the previous four sales tax quarters, they sold more than $500,000 of goods delivered into the state and made more than 100 sales.
- You register for a Certificate of Authority at least 20 days before you begin business.
Who has to register
The Department says every person who sells taxable tangible personal property or taxable services must register before beginning business - even from home, as a temporary vendor, or selling only once a year.
You have a presence in New York if, for example, you keep a store, office or warehouse in the state, solicit business there through employees, contractors or agents, or regularly deliver taxable products in your own vehicles (at least 12 times a year).
Without a physical presence, you must register when both of these are true for the immediately preceding four sales tax quarters: your gross receipts from sales of tangible personal property delivered into New York exceeded $500,000, and you made more than 100 such sales. Both conditions have to be met.
State and local rates
The combined rate is the state rate plus the local rate where the sale is taxed. The Department has an online jurisdiction and rate lookup and publishes rates by local jurisdiction.
| Tax | Rate | Notes |
|---|---|---|
| State sales tax | 4% | Applies statewide |
| Local sales tax | Varies | Imposed by cities, counties or school districts |
| MCTD surcharge | 0.375% | On taxable sales within the Metropolitan Commuter Transportation District |
What is generally taxable
New York sales tax applies to retail sales of certain tangible personal property and services. It is not a flat 'everything is taxable' rule, so check how the Department treats your specific products before you start collecting.
Registration and filing
- Register through New York Business Express to get a Certificate of Authority, at least 20 days before you begin business.
- Operating without a valid Certificate of Authority when you are required to have one carries a penalty of up to $500 for the first day and up to $200 for each day after, to a maximum of $10,000.
- Returns are filed quarterly, part-quarterly (monthly) or annually.
- You must file by the due date even in a period with no taxable sales.
- Vendors with taxable receipts over $500,000 must take part in the PrompTax program.
Selling through marketplaces
Marketplace providers are responsible for collecting New York State and local sales tax on the taxable sales of tangible personal property they facilitate.
If you meet any of the registration requirements yourself, you still register and file periodic returns, even when a marketplace remits the tax on its sales for you. Marketplace sales covered by the provider's Certificate of Collection are reported on your return as gross sales and nontaxable sales.
How Stripe Tax handles it on your store
Stores we build on our engine can take payments through Stripe, and on Stripe checkout Stripe Tax calculates the tax automatically from the product type and where the buyer is, adds it at checkout and shows it on the receipt.
Stripe Tax only collects where you have told it you are registered. You register with New York first (or ask Stripe to register for you), then add the registration in the Locations tab of your own Stripe account. Stripe also tracks your sales against state thresholds and alerts you when you may need to register.
You stay responsible for filing and paying the tax you collect. Stripe offers automated US filing through partners at an extra cost, but the obligation is yours. Stripe Tax works only on Stripe checkout, not on Wompi or Bold.
All guides
Questions
What is the sales tax rate in New York?
The state rate is 4%, plus any local rate from the city, county or school district. Sales in the Metropolitan Commuter Transportation District add 0.375%.
I sell from outside New York. When do I have to register?
When, over the immediately preceding four sales tax quarters, you sold more than $500,000 of tangible personal property delivered into New York and made more than 100 sales. Both conditions must be met.
When do I need to register?
At least 20 days before you begin business in New York. Registration gives you a Certificate of Authority.
Do I file if I had no sales?
Yes. The Department says you must file your return by the due date even if you made no taxable sales in the period.
Will my store charge New York sales tax automatically?
Yes, on Stripe checkout, once you add your New York registration in your own Stripe account. Stripe Tax calculates the rate from the buyer's location. Filing and paying the tax is still up to you.
Sources
- NYS Tax Department - Sales tax rates
- NYS Tax Department - Register for sales tax
- NYS Tax Department - Do I need to register for sales tax?
- NYS Tax Department - How to register for New York State sales tax
- NYS Tax Department - Filing sales tax returns
- NYS Tax Department - Sales tax requirements for marketplace providers
- Stripe Docs - Stripe Tax
- Stripe Docs - Register for sales tax, VAT, and GST
- Stripe Docs - File and remit
This guide is general information, not tax or legal advice. Tax rules and rates change, and your situation may differ. Confirm with the state tax agency or a tax professional before you register, collect or file.
