Sales Tax and Reverse Sales Tax Calculator New York
(Tax Year 2023: Last Updated on May 28, 2023)
New York's state general sales tax is 4%. New York authorizes counties, cities, and/or municipalities to charge a city sales tax that can reach a peak of 4.875%. Using this calculator, you can determine both the ordinary and reverse sales taxes in New York. The amount before taxes, the amount after taxes, and the tax rate are the only pieces of information needed to compute the answers immediately.
- 4%
- 4.375%
- 7%
- 7.375%
- 7.5%
- 8%
- 8.125%
- 8.25%
- 8.375%
- 8.5%
- 8.625%
- 8.75%
- 8.875%
- 8.88%
- Amount Before Tax ${{amountBeforeTax}}
- Sales Tax Rate {{SalesTaxRate}}%
- Amount Of Taxes ${{AmountOfTaxes}}
- Amount After Taxes ${{AmountAfterTaxes}}
Nauman is a Digital Marketing Specialist and owner of several online tools like DrEmployee. He believes in helping common people by providing a free online solution to day to day tasks. This project is one of them to offer free financial tools and tips.
New York – NY Sales Tax Calculator: User Guide
New York is a state famous for towering Niagara Falls and globally know New York City. The state is located in the northeastern part of the United States, sharing its borders with New Jersey and Pennsylvania to the south, Vermont, Connecticut, and Massachusetts, to the east.
The New York State is much more than NYC and the Big Apple. It offers natural wonders, rich history, diverse opportunities, a booming economy, an urban lifestyle, and a favorable business environment. Thousands of people settle in this northeastern state for a better life, business, and job opportunities.
If you are mulling over to start, expand, or relocate your business in New York, you should learn to tackle NY Sales Tax. To point you in the right direction, DrEmployee has created a guide on New York Sales Tax, including NY Sales Tax Calculator. Whether you want to know about NY sales Tax facts or learn to calculate sales tax, you'll find handy tips and guide to make your business move a snap!
New York Sales Tax Facts
- The New York State sales tax rate levied on the state level is 4%. In addition, many cities and counties collect local sales tax that ranges from 3% to 4.5% depending on the location.
- The NY state may also impose a special sales tax ranging from 0% to 0.38% on certain occasions.
- Counties that fall under the metropolitan commuter transportation district (MCTD) also collect an additional sales tax of 0.375%. MTCD counties include Kings (Brooklyn), Queens, Dutchess, Orange, Rockland, Westchester, Bronx, New York (Manhattan), Richmond (Staten Island), Nassau, Putnam, and Suffolk.
- Newspapers, prescription drugs, groceries, feminine hygiene products, laundering, and dry cleaning products, as well as water delivered through mains and pipes, are exempted from NY Sales Tax. Moreover, Clothing and footwear under $110 are also exempted. Other exemptions are mentioned on the official website of the New York State Department of Revenue.
- Public utilities like electricity, gas, and telephone services are subjected to Sales Tax.
- 6% of sales tax is charged in NY for renting a passenger car. Moreover, you are also required to pay a 5% supplemental tax if the car is rented within the metropolitan commuter transportation district (MCTD).
- Parking services for both rented or personal vehicles are charged with 4% of NY Sales Tax plus any local sales tax.
- New York City, New York, is among the cities that impose the highest possible combined sales tax rate of 8.875%.
- Barbering, tanning & massage, beautician services, health and fitness clubs, gymnasiums, saunas, and similar facilities, as well as credit reporting services, are charged with New York City sales tax but not with New York State sales tax.
- To ensure that Online and out-of-state retailers don't benefit from not paying the in-state sales tax, Use Tax (equivalent to sales tax) is charged on the purchased items outside of the state. However, if sales tax is already paid on the item purchased than Use tax is not required.
- New York Sales Tax Exemption Form can be used to exempt sales tax on items purchased for resale, improvement, or as raw materials by individuals and companies.
How to calculate Sales Tax in New York?
Businesses and Sellers who have Nexus are required to pay Sales tax to New York on retail sales of certain tangible personal property and services. They must collect, manage, and transfer it to the New York Department of Taxation and Finance while staying in compliance with state laws and avoid penalties and interest.
The sales tax determined on four factors:
- Nexus: It is a connection of business with a state. The business is only liable to pay taxes to the states with Nexus.
- Location and Products or Services: The sales tax rate varies from product to product and location to location. You must check the sales tax rate applicable to your product according to the product category, county, and city in New York.
- Exemptions: All tangible goods and certain services are eligible for sales tax regulation. However, Newspapers, prescription drugs, groceries, feminine hygiene products, laundering, and dry cleaning products, as well as water delivered through mains and pipes, are exempted from NY Sales Tax. You should check with the New York state government to update which goods and services sold in New York are subject to sales tax.
To calculate Sales Tax in New York, follow the steps below:
Step 1 – Determine your Nexus:
As a business owner, you are only required to collect sales tax if you are eligible for collecting sales tax and have Sales Tax Nexus in New York State. And to determine your Nexus in New York, you must have any of the following:
- Having a place of business places like an office in the state.
- An employee, independent contractors, or other representatives present in New York.
- Ownership personal or real property in the state.
- Having inventory or goods stored in a warehouse in New York.
- Merchandise delivered in New York on a vehicle owned by the taxpayer.
Step 2 – Determine the Sales Tax Rate:
Once you have determined that your Nexus is with New York, next is to deduce the Sales Tax rate (State + Local Sales Tax) applicable on your product, for which you can refer the tables below:
New York Sales Tax Rates by Location:
Once you have determined that your Nexus is with New York, next is to deduce the Sales Tax rate (State + County + City) applicable to your product, for which you can refer the tables below:
| County | State Rate | County/City Rate | Total Sales Tax 2023 |
|---|---|---|---|
| Albany | 4% | 4% | 8% |
| Allegany | 4% | 4.5% | 8.5% |
| Bronx | 4% | 4.875% | 8.875% |
| Broome | 4% | 4% | 8% |
| Cattaraugus | 4% | 4% | 8% |
| Cayuga | 4% | 4% | 8% |
| Chautauqua | 4% | 4% | 8% |
| Chemung | 4% | 4% | 8% |
| Chenango | 4% | 4% | 8% |
| Clinton | 4% | 4% | 8% |
| Columbia | 4% | 4% | 8% |
| Cortland | 4% | 4% | 8% |
| Delaware | 4% | 4% | 8% |
| Dutchess | 4% | 4.125% | 8.125% |
| Erie | 4% | 4.75% | 8.75% |
| Essex | 4% | 4% | 8% |
| Franklin | 4% | 4% | 8% |
| Fulton | 4% | 4% | 8% |
| Genesee | 4% | 4% | 8% |
| Greene | 4% | 4% | 8% |
| Hamilton | 4% | 4% | 8% |
| Herkimer | 4% | 4.25% | 8.25% |
| Jefferson | 4% | 4% | 8% |
| Kings (Brooklyn) | 4% | 4.875% | 8.875% |
| Lewis | 4% | 4% | 8% |
| Livingston | 4% | 4% | 8% |
| Madison | 4% | 4% | 8% |
| Monroe | 4% | 4% | 8% |
| Montgomery | 4% | 4% | 8% |
| Nassau | 4% | 4.625% | 8.625% |
| New York (Manhattan) | 4% | 4.875% | 8.875% |
| Niagara | 4% | 4% | 8% |
| Oneida | 4% | 4.75% | 8.75% |
| Onondaga | 4% | 4% | 8% |
| Ontario | 4% | 3.5% | 7.5% |
| Orange | 4% | 4.125% | 8.125% |
| Orleans | 4% | 4% | 8% |
| Oswego | 4% | 4% | 8% |
| Otsego | 4% | 4% | 8% |
| Putnam | 4% | 4.375% | 8.375% |
| Queens | 4% | 4.875% | 8.875% |
| Rensselaer | 4% | 4% | 8% |
| Richmond (Staten Island) | 4% | 4.875% | 8.875% |
| Rockland | 4% | 4.375% | 8.375% |
| Saratoga | 4% | 3% | 7% |
| Schenectady | 4% | 4% | 8% |
| Schoharie | 4% | 4% | 8% |
| Schuyler | 4% | 4% | 8% |
| Seneca | 4% | 4% | 8% |
| St. Lawrence | 4% | 4% | 8% |
| Steuben | 4% | 4% | 8% |
| Suffolk | 4% | 4.625% | 8.625% |
| Sullivan | 4% | 4% | 8% |
| Tioga | 4% | 4% | 8% |
| Tompkins | 4% | 4% | 8% |
| Ulster | 4% | 4% | 8% |
| Warren | 4% | 3% | 7% |
| Washington | 4% | 3% | 7% |
| Wayne | 4% | 4% | 8% |
| Westchester | 4% | 4.375% | 8.375% |
| Wyoming | 4% | 4% | 8% |
| Yates | 4% | 4% | 8% |
Step 4 – Calculate Sales Tax:
After determining the sales tax rate according to the location and type of purchases, it is easy to calculate the sales tax amount charged on the product and gross price (amount after tax) of a product.
Example # 1:
For instance, you are selling a Carpet on your store in Afton, New York, having a net price tag of $55. The amount that a buyer has to pay (including sales tax) on a check out would be:
Manual Method:
Net Price (amount before Tax) of a Portable Carpet: $55
Total Sales Tax rate: 0.00% (Afton) + 4.00% (Chenango County) + 4.00% (New York State) = 8.00%
Total Sales Tax amount = $55 x 8.00% = $4.4
Gross Price (Amount after Tax) = 55 + 4.4 = $59.4
It means the buyer has to pay $59.4 for a Carpet on a cash counter.
Using our Sales Tax Calculator:
All of the steps mentioned above can be skipped to get an instant result using our Sales Tax Calculator. All you need is:
- Input the $55 Net Price of the Carpet as Amount Before Tax
- Input or select 00% of the combined Sales Tax rate on the Tax Rate menu.
Our calculator will automatically calculate the result, and represents it in 3 different forms, as shown in the image below:
Reverse Sales Tax Calculation
In the example above, we have explained to you to calculate the Sales Tax amount payable in a product, and the Gross Price of the Product.
But there are also instances when you are required to deduce how much sales tax buyer has actually paid on a product or you may want to check the accuracy of the sales tax indicated on your item's receipt.
This is where the Reverse Sales Tax Calculation Kicks in. And luckily, our New York Sales Tax Calculator can perform this calculation like a Pro.
Example:
Your buyer has paid $85 for a Rug at your store in Adams Basin, New York. Now the buyer is inquiring how much a Rug actually cost before the sales tax was added. So you need to follow the steps below to determine the amount before tax (net price) of a Rug:
Gross Price (Amount after Tax) of Rug: $85
Total Sales Tax rate: 0.00% (Adams Basin) + 4.00% (Monroe County) + 4.00% (New York State) = 8.00%.
Manual Method:
Gross Price with sales tax = [Net Price × (tax rate in decimal form + 1)]
85 = [Net Price x ((8.00/100) + 1)]
85 = Net Price x 1.08
$78.7 = Net Price
So the original Price (net price) of a Rug was $78.7.
Using our Sales Tax Calculator:
You can also use our Sales Tax Calculator for Reverse Sales Tax calculation to skip the aforementioned manual method. All you need is:
- Input the $85 Gross Price of Rug as Amount after Tax
- Input or select 8.00% of combined Sales Tax Rate on the Tax Rate
Our calculator will automatically calculate the result and represents it in 3 different forms.
FAQs
Answer: The New York State sales tax rate levied on the state level is 4%. In addition, many cities and counties levy local sales tax that ranges from 3% to 4.5% depending on the location of purchase within the state.
Answer: The combined sales tax in New York City is 8.875%, which comprises of 4% of New York State sales tax, 4.5% of New York City Sales Tax, and 0.375% of metropolitan commuter transportation district (MCTD) tax.
Answer: Clothing items over $110 are charged with sales tax in New York State.
Answer: Prescription drugs, newspapers, groceries, feminine hygiene products, laundering, and dry cleaning products, as well as water delivered through mains and pipes, are not taxed in New York.
Answer: Yes, Bottled water is taxed in New York State.