New York sales & use tax.
The facts an advisor checks first — rate, nexus threshold, marketplace rules — with links to the controlling authority.
New York: rate, nexus & administration.
- State rate
- 4%
- Local rates
- Local rates bring combined rates to 8.875% in New York City
- Economic nexus
- $500,000 and 100 transactions · effective June 21, 2018Both prongs required, measured over the preceding four sales tax quarters; counts sales of tangible personal property.Controlling authority: N.Y. Tax Law § 1101(b)(8)(iv) ↗
- Marketplace facilitator
- Yes — effective June 1, 2019
- Streamlined (SST)
- Not a member
- Administered by
- New York State Department of Taxation and Finance ↗
What to watch in New York
- The nexus test is conjunctive and high ($500,000 and 100 sales) — but physical-presence triggers like trade shows and inventory still catch many sellers first.
- Prewritten software is taxable however accessed — New York is a long-standing "SaaS is taxable" state.
- Clothing under $110 is exempt from the state rate; local exemptions vary by county.
Rates, thresholds, and taxability change mid-year — verify against the New York State Department of Taxation and Finance before advising. In L3i, every determination is cited to the controlling authority.
The New York voluntary disclosure agreement.
Behind in New York? There’s a front door. The voluntary disclosure program lets a business settle unregistered-period exposure on defined terms — before the state finds it first. The terms that shape the client conversation:
Administered by the New York State Department of Taxation and Finance ↗. Program terms as of February 2026 — confirm current terms before filing. L3i pairs the exposure math with the filing itself — see exposure analysis & VDA services.
New York, in brief.
What is the economic nexus threshold in New York?
$500,000 and 100 transactions, effective June 21, 2018. Both prongs required, measured over the preceding four sales tax quarters; counts sales of tangible personal property. Once the threshold is crossed, remote sellers must register with the New York State Department of Taxation and Finance and begin collecting.
What is the sales tax rate in New York?
The state sales tax rate is 4%. Local rates bring combined rates to 8.875% in New York City.
Do marketplace facilitators collect New York sales tax?
Yes — marketplace facilitators have been required to collect since June 1, 2019. Direct (non-marketplace) sales remain the seller’s obligation.
How does a remote seller register for New York sales tax?
Register with the New York State Department of Taxation and Finance before collecting — a remote seller must register once it crosses the economic nexus threshold ($500,000 and 100 transactions).
Does New York offer a voluntary disclosure agreement (VDA)?
Yes — the New York State Department of Taxation and Finance administers a voluntary disclosure program with a lookback of 36 months (3 years). Penalties are generally waived; interest is generally still due. An advisor can approach the state anonymously before disclosing the client’s identity.
A page tells you the rule. The platform applies it — and remembers why.
L3i runs New York determinations against a deterministic rules engine, cites the controlling authority, and captures your firm’s judgment so the next New York question starts further ahead.
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