Navigating Sales Tax in New York

This guide provides an overview of Sales Tax in New York, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within New York.

Last Updated: November 2025

20K

audits are conducted annually focused on sales tax compliance.

New York at a glance.

State

New York

Tax Rate Range

4% - 8.875%

Economic Nexus Threshold

$500,000 and 100 transactions

Filling Deadlines

20th of the month following the reporting period

Is SaaS Taxable?

Yes

Base Tax Rate:

4%

When should your
business collect Sales
Tax in New York?

Your business must begin collecting NY sales tax when it has either a physical presence (nexus) or meets the economic nexus threshold in New York. In practice that means if you have inventory, an office, employees or make recurring in-person sales in NY, or you exceed the $500,000/100 transactions economic threshold, you should register and collect tax on your taxable sales in New York.

New York physical sales tax nexus.

A physical sales tax nexus in New York is formed when a business maintains a physical presence in the state.

Sales tax physical nexus checklist for New York

The following conditions might establish a physical nexus in New York:

Having a retail storefront or physical store in New York

Maintaining a warehouse, office or other property (real or personal) in NY.

Employing residents of New York (e.g., staff, salespeople).

Attending or participating in sales-expos, trade shows or regularly conducting in-person sales within the state.

Having significant in-person operations such as installation, maintenance, repair services in NY (implied by “regularly conducting in-person sales in the state”).

Which services are taxable in New York?

Installation, repair, maintenance or renovation of tangible personal property.

Interior decorating and design services.

Parking, garaging or storing of motor vehicles.

New York taxes a variety of services that are considered tangible in effect or connected to real property.

New York sales tax information:

New York is a destination-based state, so to calculate sales tax you apply the combined state and local rate for the customer’s delivery location to the taxable sale amount.

Sales tax applies to retail sales of tangible personal property (i.e., physical goods) and certain specified services. Sales/use tax also applies if a purchase out-of-state is used within New York.

You must register with the New York State Department of Taxation and Finance (NYSDTF) to get a Certificate of Authority before making taxable sales. You apply via NY Business Express for the Certificate (Form DTF-17.1) and must register before you begin taxable sales.

You determine the correct total rate for the customer’s location (state + local), then add that tax to your invoice/sale. You must then remit the collected tax by the filing deadline regardless of whether you had taxable sales or not.

Sales Tax return due dates explained.

Once you are registered and collecting, you must file sales tax returns at the frequency assigned to you (monthly, quarterly, annually) depending on your sales volume and liability. For most businesses, the frequency is quarterly. The due date is the 20th day of the month following the reporting period. For example, if you file quarterly for a period ending August 31, the return is due September 20. During a transition or for very high-volume businesses you may be required to file monthly or make prepaid payments.

Quarterly Filing Deadlines

Ql (Dec 1 – Feb 28) - Due March 20

Q2 (Mar 1 – May 31) - Due June 20

Q3 (Jun 1 – Aug 31) - Due September 20

Q4 (Sep 1 – Nov 30) - Due December 20

FAQs

If I have no taxable sales in a period, do I still file a return?

Yes. Even if you made no taxable sales, you are still required to file a “zero-sales” return by the due date, or you may be subject to penalties.

If I sell SaaS from outside New York to customers in New York, do I need to collect New York sales tax?

Yes — if you meet nexus (economic or physical) in New York, you must collect tax on digital products such as SaaS delivered into New York.

How do I determine the correct local tax rate to apply?

You must look up the customer’s location (destination) jurisdiction and apply the state rate plus any local county/city tax. The New York State Department of Taxation and Finance provides tools for rate look-up.

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Navigating Sales Tax in New York

This guide provides an overview of Sales Tax in New York, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within New York.

Last Updated: November 2025

20K

audits are conducted annually focused on sales tax compliance.

New York at a glance.

State

New York

Tax Rate Range

4% - 8.875%

Economic Nexus Threshold

$500,000 and 100 transactions

Filling Deadlines

20th of the month following the reporting period

Is SaaS Taxable?

Yes

Base Tax Rate:

4%

When should your
business collect Sales
Tax in New York?

Your business must begin collecting NY sales tax when it has either a physical presence (nexus) or meets the economic nexus threshold in New York. In practice that means if you have inventory, an office, employees or make recurring in-person sales in NY, or you exceed the $500,000/100 transactions economic threshold, you should register and collect tax on your taxable sales in New York.

New York physical sales tax nexus.

A physical sales tax nexus in New York is formed when a business maintains a physical presence in the state.

Sales tax physical nexus checklist for New York

The following conditions might establish a physical nexus in New York:

Having a retail storefront or physical store in New York

Maintaining a warehouse, office or other property (real or personal) in NY.

Employing residents of New York (e.g., staff, salespeople).

Attending or participating in sales-expos, trade shows or regularly conducting in-person sales within the state.

Having significant in-person operations such as installation, maintenance, repair services in NY (implied by “regularly conducting in-person sales in the state”).

Which services are taxable in New York?

New York taxes a variety of services that are considered tangible in effect or connected to real property.

Installation, repair, maintenance or renovation of tangible personal property.

Interior decorating and design services.

Parking, garaging or storing of motor vehicles.

New York sales tax information:

New York is a destination-based state, so to calculate sales tax you apply the combined state and local rate for the customer’s delivery location to the taxable sale amount.

Sales tax applies to retail sales of tangible personal property (i.e., physical goods) and certain specified services. Sales/use tax also applies if a purchase out-of-state is used within New York.

You must register with the New York State Department of Taxation and Finance (NYSDTF) to get a Certificate of Authority before making taxable sales. You apply via NY Business Express for the Certificate (Form DTF-17.1) and must register before you begin taxable sales.

You determine the correct total rate for the customer’s location (state + local), then add that tax to your invoice/sale. You must then remit the collected tax by the filing deadline regardless of whether you had taxable sales or not.

Sales Tax return due dates explained.

Once you are registered and collecting, you must file sales tax returns at the frequency assigned to you (monthly, quarterly, annually) depending on your sales volume and liability. For most businesses, the frequency is quarterly. The due date is the 20th day of the month following the reporting period. For example, if you file quarterly for a period ending August 31, the return is due September 20. During a transition or for very high-volume businesses you may be required to file monthly or make prepaid payments.

Quarterly Filing Deadlines

Ql (Dec 1 – Feb 28) - Due March 20

Q2 (Mar 1 – May 31) - Due June 20

Q3 (Jun 1 – Aug 31) - Due September 20

Q4 (Sep 1 – Nov 30) - Due December 20

FAQs

If I have no taxable sales in a period, do I still file a return?

Yes. Even if you made no taxable sales, you are still required to file a “zero-sales” return by the due date, or you may be subject to penalties.

If I sell SaaS from outside New York to customers in New York, do I need to collect New York sales tax?

Yes — if you meet nexus (economic or physical) in New York, you must collect tax on digital products such as SaaS delivered into New York.

How do I determine the correct local tax rate to apply?

You must look up the customer’s location (destination) jurisdiction and apply the state rate plus any local county/city tax. The New York State Department of Taxation and Finance provides tools for rate look-up.

Related content.

US Sales Tax

12 May 2026

The Myth of Marketplace Protection: What Sellers Misunderstand

The Myth of Marketplace Protection: What Sellers Misunderstand When marketplace facilitator laws first came into effect across US states following the 2018 South Dakota v. Wayfair decision, many sellers breathed a sigh of relief. If platforms like Amazon, Shopify, or Etsy were now legally required to collect and remit sales tax on behalf of third-party sellers, […]

Read More

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Continuous Transaction Controls (CTC): How Real-Time VAT Reporting Works in 2026

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Read More

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Read More

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Read More

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15 Apr 2026

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Read More

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Read More

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Read More

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9 Apr 2026

Quarterly VAT Return Dates: How to Stay Compliant All Year

Quarterly VAT Return Dates: How to Stay Compliant All Year For most finance teams, a new quarter doesn’t just mean new targets. It signals the start of another VAT reporting cycle, often accompanied by a last-minute rush to reconcile accounts and meet VAT return deadlines. This reactive approach creates unnecessary pressure, increases the risk of […]

Read More

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Navigating Sales Tax in New York

20K

State

New York

Tax Rate Range

4% - 8.875%

Economic Nexus Threshold

$500,000 and 100 transactions

Filling Deadlines

20th of the month following the reporting period

Is SaaS Taxable?

Yes

Base Tax Rate:

4%

When should yourbusiness collect SalesTax in New York?

New York physical sales tax nexus.

A physical sales tax nexus in New York is formed when a business maintains a physical presence in the state.

Sales tax physical nexus checklist for New York

Which services are taxable in New York?

Sales tax applies to retail sales of tangible personal property (i.e., physical goods) and certain specified services. Sales/use tax also applies if a purchase out-of-state is used within New York.

Quarterly Filing Deadlines

FAQs

Related content.

The Myth of Marketplace Protection: What Sellers Misunderstand

How the VAT IT and Brex Integration Streamlines VAT Reclaim

Continuous Transaction Controls (CTC): How Real-Time VAT Reporting Works in 2026

Economic Nexus Explained (2026 Update): What European & UK Companies Need to Know After Their First Years Selling in the U.S.

6 Best US Sales Tax Compliance Solutions in 2026: An Honest Comparison

What is Peppol and How Does It Affect Your Business When e-Invoicing

Top Global VAT Solutions in 2026

9 Best e-Invoicing Compliance Solutions

e-Invoicing Requirements for B2B Sellers: What You Need to Have in Place

Quarterly VAT Return Dates: How to Stay Compliant All Year

Navigating Sales Tax in New York

20K

State

New York

Tax Rate Range

4% - 8.875%

Economic Nexus Threshold

$500,000 and 100 transactions

Filling Deadlines

20th of the month following the reporting period

Is SaaS Taxable?

Yes

Base Tax Rate:

4%

When should yourbusiness collect SalesTax in New York?

New York physical sales tax nexus.

A physical sales tax nexus in New York is formed when a business maintains a physical presence in the state.

Sales tax physical nexus checklist for New York

The following conditions might establish a physical nexus in New York:

Which services are taxable in New York?

New York taxes a variety of services that are considered tangible in effect or connected to real property.

Sales tax applies to retail sales of tangible personal property (i.e., physical goods) and certain specified services. Sales/use tax also applies if a purchase out-of-state is used within New York.

Quarterly Filing Deadlines

FAQs

Related content.

The Myth of Marketplace Protection: What Sellers Misunderstand

How the VAT IT and Brex Integration Streamlines VAT Reclaim

Continuous Transaction Controls (CTC): How Real-Time VAT Reporting Works in 2026

Economic Nexus Explained (2026 Update): What European & UK Companies Need to Know After Their First Years Selling in the U.S.

6 Best US Sales Tax Compliance Solutions in 2026: An Honest Comparison

What is Peppol and How Does It Affect Your Business When e-Invoicing

Top Global VAT Solutions in 2026

9 Best e-Invoicing Compliance Solutions

e-Invoicing Requirements for B2B Sellers: What You Need to Have in Place

Quarterly VAT Return Dates: How to Stay Compliant All Year

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When should your
business collect Sales
Tax in New York?

When should your
business collect Sales
Tax in New York?