State Sales Tax

• State sales tax is, as its name suggests, the percentage of a sold item's value that is charged by the state of New York. It is 4 percent as of February 2011, which is a decrease of 0.25 percent from 2005. State sales tax is the same across the entire state and is not levied on certain basic necessities, though these rules do not necessarily match up with county rules. For example, some counties continue to charge sales tax on clothing and shoes while the state has abolished its sales tax for such items costing less than $110.
  
  

County Sales Tax

• County sales tax is the percentage of a sold item's value that is charged by the county in which the consumer purchases the items. It ranges from 3 percent to 4.5 percent, meaning that most consumers pay anywhere from 7 percent to 8.5 percent in total sales tax on most items. Each county has its own rules on the applicability of its sales taxes, while the five counties that comprise New York City share the same set of policies.
  
  

Transit Sales Tax

• Transit sales tax is the percentage of a sold item's value that is charged to support the Metropolitan Transit Authority. It is 0.375 percent across all of the counties in which it applies. For example, while New York City has a sales tax rate of 4.5 percent, sales tax on most items purchased there are charged 8.875 percent because of the additional transit sales tax.
  
  

Online Purchases

• Since June 1, 2008, New York state has required online purchases to be taxed using the same sales tax rate that would apply in the county to which the purchased item is sent. Such taxes would include shipping and handling costs.