New York

Provinces
New York
Provinces
New York
About
New York
About
New York
New York
New York

Standard rate

The standard sales tax rate in New York ranges for 2024 from 4% to 8.875%.

Reduced rate

Alternative fuels (CNG, hydrogen, E85) are exempt from state and local sales tax, and biodiesel (B20):  3-4.7%.

Sales of tax-free products and services

  • Food for home;
  • Medicines;
  • Personal and professional services;
  • Stream music;
  • Ringtones;
  • Movies;
  • SAAS software (training, consulting, installing, programming, repairing, servicing), provided that these services are not provided in conjunction with the sale of the finished software or are separately stated in the invoice or statement of account provided to the client.

Who must register sales tax in New York

If you are selling in New York, have the required Nexus in New York, and your buyers are required to pay sales tax, you must register to collect and pay sales tax in New York.
Standard rate 4% - 8.875% Reduced rate 3-4.7% Threshold $500,000
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Threshold

Starting June 21, 2018, remote sellers must collect and remit sales tax in New York if they exceed $500,000 in gross sales and conduct 100 or more transactions in the state in the current or previous year. This threshold applies to both tangible goods and taxable digital products or services, including pre-written computer software and its subsequent updated versions. Merchant thresholds by state Marketplace thresholds by state The special rules are applicable to the SAAS business. Software as Service Tax Thresholds by state.

Online Marketplaces

In New York, marketplace facilitators such as Amazon or eBay are required to collect and remit sales tax on behalf of third-party sellers if the marketplace meets certain thresholds. Since June 1, 2019, marketplace facilitators must register for sales tax collection if their sales in New York exceed $300,000 or they conduct more than 100 transactions in a year. This law applies to all taxable sales made through the platform, shifting the tax collection responsibility from individual sellers to the facilitator. However, if you are selling directly through your own website, you are required to register for sales tax if you meet economic nexus thresholds for remote sellers.

Registration procedure

If you need to register, you can register online through the New York Department of Taxation and Finance website. Information provided by the company:
  • Federal Employer Identification Number (FEIN);
  • Legal business name; business address and mailing address (if different than business address);
  • Projected monthly sales and monthly taxable sales;
  • Products to be sold.

Sales tax payment and filing date

Depending on your tax liability, determine your filing frequency – either monthly, quarterly, or Annual:
  • Quarterly – $1,000 to $99,999.99;
  • Monthly – $300,000.00 and up;
  • Annual – $0 to $2,999.99.
Return is due by the 20th of the month following the filing period. If the filing due date falls on a weekend or holiday, sales tax is due the next business day.

Penalty and interest

  • Late filing of fewer than 60 days – 10% for the first month, and 1% for each additional month or cut (maximum – 30%, minimum – $50);
  • Failed filling or late filing more than 60 days – 10% for the first month, and 1% for each additional month or cut, (maximum – 30%);
  • $100, or 100% of the amount must be paid as tax.

Discount

As long as the sales tax is paid on time, a discount – of 5% (maximum – $200 per quarter, or longer period).

New York Sales Tax Nexus

  • Physical Presence: Companies with offices, warehouses, employees, or other physical presences in the state must collect sales tax.
  • Economic Nexus: Established if a company has gross sales in New York exceeding $500,000 and conducts 100 or more separate transactions with buyers in the state within the previous four quarters.
October 10, 2024 156
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