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What Is the Highest Sales Tax Rate in New York?
Tax Strategy & Planning

What Is the Highest Sales Tax Rate in New York?

Purchases in New York are taxed differently based on the region. The base charge of 4% in New York is fixed, however, some counties and cities add additional blocks of taxes, which results in a significant difference across the state. Some areas even reach the total combined rate of taxes, which is among the highest in the Country.

By George DimovPublished 5 min read
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Section 01

New York City: 8.875%

The highest combined sales tax rate in New York is 8.875% in New York City, and the breakdown is as follows:

  • 4% State Sales Tax
  • 4.5% NYC Local Sales Tax
  • 0.375% Metropolitan Commuter Transportation District (MCTD) surcharge

Hence, purchasing a $1,000 item in NYC will have a tax of $88.75 and the total of $1,088.75.

Section 02

Other High Tax Areas

While NYC tops the list, other areas also have high combined rates:

Yonkers: 8.875% (same as NYC)
Mount Vernon and New Rochelle (Westchester County): Around 8.375%
Buffalo (Erie County): 8.75%

Most other counties in the state range between 7% and 8.5%.

Section 03

Why Are Rates So High in NYC?

Like many other regions, New York City has to deal with additional local taxes due to the extra city services and infrastructure that are provided. Transportation services, especially the MTA system, are funded from the MCTD surcharge. These additional fees are the reason for New York City being among the highest, if not the highest, in rates for the whole country.

Section 04

How to Check the Rate Where You Shop

If you are interested in finding out the exact rate for your area, the New York State Department of Taxation and finance has an online lookup tool where you type in your ZIP code. This is of great importance for businesses and even for the consumers who are making bulk purchases.

Section 05

Bottom Line

The highest sales tax rate in New York is 8.875% in New York City and Yonkers. Other regions have slightly lower rates but they still differ from the county. Always make sure to check your local rate before making huge purchases to avoid surprises at the checkout.

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