Shopping in New York City can be a great experience, but it's important to be aware of the applicable tax rates. The municipal sales tax rate is 4.5% on services, and there is no sales tax in New York State. However, if products are purchased, a combined municipal and state tax of 8.875% will be charged. In addition, the city levies a 10.375% tax and an extra 8% surtax on parking, garage, or motor vehicle storage in Manhattan. The minimum combined sales tax rate for New York City, New York, is 8%.
This is the total of state, county, and city sales tax rates. The state's sales tax rate is 4%, while the county's rate is 4%. New York City's sales tax rate is 0%.New York State laws also allow other local jurisdictions to impose locally administered taxes, such as hotel occupancy, energy and telecommunications taxes. For instance, the short-term rental of a passenger car rented within the State of New York or rented outside the State of New York for use within the State of New York entails an additional 6% sales tax or exclusive use of the State of New York. The New York State Bag Waste Reduction Act authorizes counties and cities to impose a five-cent reduction fee from paper bags to take away paper bags that sellers of sales tax on the sales of tangible personal property give to customers. If you are providing services in New York City, you must file Schedule N along with your sales tax return to declare sales and remit the sales tax due for these services.
Parking charges in New York City are subject to the 4% state tax, the 6% New York City local tax and the 5% Metropolitan Commuter Transportation District (MCTD) tax (for a combined state and local rate of 10%).