
Who has to pay the NYC unincorporated business tax?
Filing and paying are two separate tests on two different numbers. You can be required to file the UBT and owe nothing at all. What each test measures.
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In 2025, the total NYC sales tax remains 8.875% (comprising 4% State, 4.5% City, and 0.375% MCTD taxes) and applies to most tangible goods, including clothing over $110, while continuing to exempt essential items like most groceries, prescription medicines, and clothing or footwear priced under $110.
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Section 01
NYC Sales Tax is a combination of state, city, and Metropolitan Commuter Transportation District (MCTD) taxes on goods and certain services sold in New York City. The total tax rate is 8.875%, which includes 4% New York State sales tax, 4.5% New York City sales tax, and a 0.375% MCTD tax.
Category | Taxable Items | Non-Taxable Items |
|---|---|---|
| Footwear & Clothing | Clothing over $110 | Clothing under $110 |
Groceries | Prepared foods | Most grocery items |
Services | Hotel accommodations, Cable TV | Medical services |
Electronics | Phones, Computers | N/A |
NYC Sales Tax is 8.875%, including state, city, and MCTD taxes.
Most grocery items are not subject to sales tax.
Yes, businesses must file returns based on their sales volume, either monthly, quarterly, or annually.
Register by obtaining a Certificate of Authority from the New York State Department of Taxation and Finance.
Services like hotels, cable TV, and cleaning are taxable. Medical and professional services are generally exempt.
Returns are due monthly, quarterly, or annually based on sales tax collected. Check NYC Tax for deadlines.
For more information or assistance with NYC Sales Tax compliance, contact us today!
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