Sales Tax in New York State: Use Tax, Nexus, Rates, & More

Physical Nexus

Your business has physical nexus if it has any of the following items within the state of New York:

Physical offices or storefronts
Employees reside in the state
Affiliates who refer business either directly or indirectly to the retailer of tangible products
Tradeshow presence

Here is a more extensive list of what the state of New York considers instances of creating sales tax nexus.

Taxability

Taxability can change from state to state and often depends on how your product/services are defined. Determine whether software and SaaS are subject to taxation here.

Like much of sales tax, this can often be difficult to manage alone. Reach out if you need help understanding the taxability of products/services in New York.

Collecting Sales Tax

As a destination-based sales tax state, New York requires sellers to charge the rate of the location in which the item is being delivered.

New York state's sales tax rate is 4%. This will be combined with any local tax rates, which may include county, city, and school districts. In addition, a 0.375% sales tax rate applies to taxable sales made within the Metropolitan Commuter Transportation District (MCTD). The overall sales and use tax rates vary by county and in cities that levy their own sales taxes.

When Are Sales Taxes Due in New York?

Sales tax returns are dependent upon the state's due dates and the vendor's filing frequency. If the seller exceeds the economic threshold, they are liable to file on a monthly basis. If the seller does not exceed the New York sales tax nexus threshold, then returns could be due quarterly or annually.

Filing must be completed by the 20th of the month that follows the seller's assigned filing period.