Clothing and Footwear Under $110
New York does not charge the state sales tax of 4% for clothing and footwear items under $110. Additionally, in New York City, footwear and clothing are also exempt from local tax.
Example: For a $90 pair of shoes, the sales tax would not be charged. However, a single item priced at $120 is fully liable to the tax. The purpose of this rule is to assist residents in accessing basic clothing.
Groceries and Food Items
Items such as bread, milk, fruit, vegetables and even meat, are not exempt from sales tax. However, goods such as prepared foods, meals from restaurants, and drinks like soda and alcohol are considered taxable.
Prescription Drugs and Certain Medical Supplies
Over-the-counter medications are categorized as necessities and are tax exempt. Certain other medical supplies and healthcare services such as insulin also do not attract sales tax.
Newspapers and Periodicals
Sales tax does not apply to printed newspapers and specific periodicals. This is to ensure that information is readily available at a lower cost. However, the digital versions might still attract sales tax depending on the delivery method.
Other Specialized Exemptions
A few other items relating to agriculture, and the manufacturing and medical fields may be tax exempt, but these are mostly limited to businesses and specific industries.
Bottom Line
Not all products purchased in New York are subject to sales tax. New York residents, for instance, are not taxed on prescription medications. Such items help reduce expenses, especially in the context of New York’s high cost of living. The New York State Tax Department should be consulted for the latest rules on exemptions as they may differ by region.
For professional guidance on sales tax rules and exemptions in New York, reach out to our dedicated team at Dimov NYC CPA today in order to establish full compliance.
