Everything you need to know about taxes in New York

When you visit New York for the first time, you’ll notice something both frustrating and disorienting: prices in shops and restaurants are always displayed before taxes. This makes it hard to compare with European prices or to know exactly what you’ll pay at the register. But that’s how it works in New York, so you’ll need to adjust.
To help you out, here are the tax rates currently in effect in New York:

Sales Tax on Shopping in New York

When shopping in New York, bring a calculator. Prices in New York stores are always shown before tax. Here’s what you need to know:

• On purchases of $110 or more: add 8.875% tax to the price. A pair of shoes priced at $110 before tax will actually cost $119.76 at checkout.
• On purchases under $110, it depends on the product type. Clothing and shoes are tax-free below $110. Everything else is taxed. Souvenirs, for example, are subject to 8.875% tax.

Sales Tax in Restaurants

Restaurants in New York always display menus with prices before tax, just like shops. It’s hard to know your final bill. Plus, you need to account for both tax and tip—neither is included but both must be paid. Here’s what to add to the pre-tax total:

• 8.875% for sales tax. This amount appears on your bill.
  
• A minimum of 15% of the pre-tax total for the tip. This amount does not appear on your bill—you add it yourself when you pay. You can tip more based on your satisfaction. 15% is the minimum; most customers leave 20%.

Sales Tax on Food

• In general, there is no tax on basic food items such as fruits, vegetables, meat, fish, cookies, canned goods, and so on.
• However, if the food is heated and ready to eat, you must add 8.875% tax. This applies to sandwiches and pizza slices, which are taxed at 8.875%.
  

Hotel Tax in New York

When you book a hotel in New York, check whether taxes are included in the total quoted to you. Here are the taxes you’ll owe:

• 14.75% tax on the total room rate. If a night costs $100 before tax, your final bill will be $114.75 with tax.
• There is also an occupancy tax. The occupancy tax in New York is $3.50 per room per night in 2025. If two of you stay in one room for 7 nights in New York, you’ll pay $24.50 in occupancy tax.