Products, services, and transactions subject to sales tax
Products and services subject to tax
Sales and use tax (sales tax) is applied to:
- tangible personal property (unless specifically exempt);
- gas, electricity, refrigeration and steam, and telephone service;
- selected services;
- food and beverages sold by restaurants, taverns, and caterers;
- hotel occupancy; and
- certain admission charges and dues.
For more detailed information about what sales are subject to tax, see Tax Bulletin Quick Reference Guide for Taxable and Exempt Property and Services (TB-ST-740).
Transactions not subject to tax/exempt sales
The Tax Law exempts purchases for resale; most sales to or by the federal and New York State governments, charitable organizations, and certain other exempt organizations; sales of most food for home consumption; and sales of prescription and nonprescription medicines.
Sales tax also does not apply to most services. Examples of services not subject to sales tax are capital improvements to real property, medical care, education, and personal and professional services. See Transactions that are not subject to sales tax for details.
If a property or service is exempt from tax from all purchasers, the vendor is not required to obtain an exemption certificate. However, an exemption certificate enables a purchaser to make tax-free purchases that would normally be subject to sales tax. See Tax Bulletin Exemption Certificates for Sales Tax (TB-ST-240) for details.
Additional taxes and fees
Certain additional taxes and fees are imposed as part of the sales tax. Tax Bulletin Sales Tax Rates, Additional Sales Taxes, and Fees (TB-ST-825) provides more detail about these additional taxes.
Peer-to-Peer Car Sharing: An additional 6% tax applies to the gross receipts paid by a shared vehicle driver for use of a shared vehicle under a peer-to-peer car sharing program in New York State. For more information, see TSB-M-22(1)S, Special Taxes on Peer-to-Peer Car Sharing.
Vapor products: A 20% supplemental sales tax is imposed on retail sales of vapor products sold in New York. For more information, see Vapor products.
Passenger car rentals: An additional 12% tax applies to charges for passenger car rentals both inside and outside the MCTD.
Information and entertainment services: An additional state tax applies to information and entertainment services heard over the telephone (such as "900" numbers). These taxes are in addition to the regular state and local sales tax on these services.
Hotel occupancy in New York City: A $1.50 per unit per day fee on hotel occupancy in New York City applies in addition to the sales tax on the rent for hotel occupancy.
Parking services in New York City: An additional 6% New York City local tax applies to parking services in New York City. The borough of Manhattan also has an additional 8% parking tax that applies unless the purchaser is a certified exempt resident. See Parking Services in New York City for more information.