New York (NY) Sales Tax
The New York sales tax rate is 8.88%
|New York state sales tax||4.00%|
|New York County sales tax||0%|
|Combined Sales Tax||8.88%|
New York sales Tax Calculator New York
To make it easier to calculate the New York (NY) Sales tax, we have created a calculator. All that you need to input is the zip code and the number of goods bought. The calculator will tell you how much you should approximately pay in sales tax. The tools are free to use and very simple.
How does the New York sales tax compare to the rest of New York?
Each vendor in the USA needs to charge sales tax to the items and services that they sell. The Department of Revenue collects the sales tax proceeds from the vendors. The New York, NY sales tax rate is 8.88%. This includes 4.00% New York state sales tax, 0% New York County sales tax and 0.38% special tax.
A merchant adds the sales tax to all the qualifying sales completed in New York, NY. The New York sales tax should be clearly stated on the invoice. There are some specific goods and services are tax-exempt in New York (New York). Alcohol, tobacco and gas are subject to excise tax.
The 8.88% sales tax rate of the New York, NY applies to the following list of zip codes: 10001, 10002, 10003, 10004, 10005, 10006, 10007, 10008, 10009, 10010, 10011, 10012, 10013, 10014, 10016, 10017, 10018, 10019, 10020, 10021, 10022, 10023, 10024, 10025, 10026, 10027, 10028, 10029, 10030, 10031, 10032, 10033, 10034, 10035, 10036, 10037, 10038, 10039, 10040, 10041, 10043, 10044, 10045, 10055, 10060, 10065, 10069, 10075, 10080, 10081, 10090, 10095, 10101, 10102, 10103, 10104, 10105, 10106, 10107, 10108, 10109, 10110, 10111, 10112, 10113, 10114, 10115, 10116, 10117, 10118, 10119, 10120, 10121, 10122, 10123, 10125, 10126, 10128, 10129, 10132, 10133, 10138, 10150, 10151, 10152, 10153, 10154, 10155, 10156, 10157, 10158, 10159, 10160, 10161, 10162, 10163, 10165, 10166, 10167, 10168, 10169, 10170, 10171, 10172, 10173, 10174, 10175, 10176, 10177, 10178, 10179, 10185, 10199, 10203, 10211, 10212, 10213, 10257, 10258, 10268, 10271, 10272, 10273, 10274, 10276, 10278, 10279, 10280, 10281, 10282, 10285, 10292.
The vendor needs to check their district zip code to make sure that they are charging the right sales tax for the business transactions.
There are 1220436 people in and around New York. It is important to be aware that zip-code boundaries do not always coincide with general boundaries. Therefore, when choosing sales tax rates, you should not focus only on zip-codes. In the event of a dispute, it is recommended that you contact the Internal Revenue Service to determine sales tax rates for you.
Alternative sales tax rate for New York
|City||Combined Tax||State Rate||County Tax||City Tax||Special Tax|
Popular questions about sales tax in New York
Sales taxes are regulated by state and federal laws. Since states control the amount of sales tax that they charge locally, some others have decided to omit sales taxes at all to facilitate transactions. There are municipalities, or cities that can impose their taxes. As of right now, there are 5 states in the USA that do not charge a state sales tax. These states are Alaska, Montana, Oregon, Delaware, New Hampshire.
When you purchase a car, the laws regarding the applicable sales tax are a bit more complicated. The first factor to consider is that there is a base 6% sales tax. Let’s say that your car costs 10k. You pay 6% on that, which is $600 on sales tax. On top of this cost, you also pay fees for vehicle registration and licenses. If you complete the transaction via a dealership, then all this paperwork and its cost are factored in on the sales agreement. If you buy the car via a private seller, then it is you, the buyer that needs to process all this paperwork via the local tax office and vehicle registration office. You would be responsible for paying registration fees and the title.
States allow for trade-in allowances, and this is a fantastic way to reduce your tax bill. Instead of selling your old vehicle, and then incurring sales taxes on that transaction, you can bring your old vehicle to the dealership and do a trade-in allowance for a new car. The value of the trade-in is reduced from the sticker price of the car that your intent to purchase. Then some dealerships offer rebates, which further reduces your total sales tax.
Let’s say that you will purchase the same car as in the above example that costs 10k. Instead, this time you have an old car to do a trade-in that is valued at 2k. The dealership offers you a 1k rebate offer. In that case, your sales tax will not be charged anymore on the original price of 10k, but it will be charged on the reduced price after the rebate and the trade-in. More specifically, we will reduce from 10k, the value of the rebate (1k) and the value of the trade-in (2k), hence a total of 3k of discount. We would end up paying out-of-pocket 7k. The applicable sales tax on a 7k car is $7000*6%= $420. We can see that we are paying a lower sales tax compared to the previous tax of $600. We are not paying any taxes on the old car that you brought for a rebate and not paying any sales taxes on that.
Sales taxes add up and increase your costs. Everybody would like to save on costs. There are legal ways that you can use to avoid paying sales taxes. The first detail to know is a court ruling of 1992. According to the supreme court, you are not liable for sales taxes when you buy out of state. This means that if you do some research and buy from sellers that are established out of state, you will be able to avoid sales taxes.
Another great way to avoid sales taxes is to shop at eBay or other eCommerce stores where items are sold by individual sellers. We need to remember that companies that sell on these platforms are liable to charge sales taxes. The same strategy can be used to find big companies or established merchants that have their eCommerce business separate from their brick-and-mortar shops. Such is the case of Barnes&Nobles and Borders. Also making small research on how the sales tax is handled by the seller is a great way to save money, as the merchant may have special agreements with the government.
Another great way to avoid sales taxes is to purchase from states that do not incur sales taxes. If you cannot eliminate the sales tax, then why not reduce it. Since sales taxes depend on location, then choosing the right place to buy the car, will affect your sales taxes, as each county and zip code have their own applicable sales tax rate. The type of car also affects your applicable sales tax rate. A good way to reduce your sales taxes is to choose the right permanent address.
Sales taxes are collected by the Department of Revenue. The taxes go to the General Fund, and it funds government expenses. Some parts of the sales tax fund state operations, such as K-12 education. The money can be used to fund other public services. The money collected from taxes is also used to pay the wages of jobs that are related to government agencies, such as police departments, libraries, museums, etc.
When you make a purchase, you must pay sales tax. To find how much u, pay, all that u have to do is to add up the total percentage of applicable sales taxes to your location and multiply that by the total cost of goods. Let’s say that your total applicable sales tax rate is 8%. Let’s say that you make a purchase worth $100. You multiply $100 with 8% to get a total sales cost of $8. You then add the $8 to the original cost of goods, bringing your final transaction cost to $108.