New York Sales Tax Guide for Businesses
Return Location: Online or mail-in (not recommended)
Has Local Filings: Yes
Sales Tax Rate: 4% state rate plus 4.5% city rate (additional rates may be added). Read more about New York sales tax rates here.
Contact Information: Visit their website or call 518-485-2889 for their sales tax hotline.
How is Tax Calculated?: New York sales taxes are based on the destination of the sale (rate is based on where the buyer is located). Read more here.
Are Services Taxable?: Sales of services are generally exempt from New York sales tax unless they are specifically taxable. Read more here.
Nexus in New York
What Creates Nexus: A business is considered to be “engaging in business in New York” (and therefore owe sales tax) if they have:
- An office or place of business in New York
- An employee present in the state for more than 2 days per year
- Goods in a warehouse in New York
- Ownership of real or personal property in New York
- Delivery of merchandise in New York in vehicles owned by the taxpayer
- Independent contractors or other representatives in New York
- Read more about nexus guidelines here.
Affiliate Nexus: Businesses located outside of New York State that are affiliated with a vendor in New York State may also be required to register to collect and remit sales tax. Whether a New York business and an out-of-state seller are affiliated is based on an ownership test. Read more about New York affiliate nexus conditions here.
eCommerce Nexus?: New York does have special laws that create nexus for online seller. In 2008, New York became the first state to adopt a click-through nexus law. This new law provided that a seller is presumed to be a vendor if it entered into an agreement with a resident of New York and the resident refers customers to the vendor’s website. The referrals may be made through a link, a website, or other digital means. The law also required that the cumulative gross receipts from sales in New York be in excess of $10,000 during the preceding four quarterly periods. Read more about New York click-through nexus conditions here.
How to File a Sales Tax Return in New York
Online or mail-in: New York recommends that you file a sales tax return using the Sales Tax Web File online service. If online filing is not an option, you may also be permitted to mail in your return to the New York Tax Department. Click here for return forms and instructions.
We will be adding an instructional video here at a later date.
How to Get a Sales Tax Permit in New York
View our full guide: Coming soon
Where to Register: New York Business Express
Registration Fee: There is no fee for obtaining a sales tax permit in New York
Renewal Required?: No, New York does not require you to renew your sales tax permit.
New York Sales Tax Filing Frequency
New York has taxpayers file on a monthly, quarterly, or annual basis depending on their average quarterly tax liability (based on average annual liability for annual returns):
Monthly: For average quarterly liabilities above $300,000.
Quarterly: For average quarterly tax liabilities between $3,000 to $300,000.
Annually: For average annual sales tax liabilities between $0 to $3,000.
Discounts: There is an early filing discount of 5% in New York, with a maximum discount of $200 per quarter.
Late Fees: Filing a return late by 60 days or less results in a late fee of 10% of the tax due for the first month plus 1% for each additional month or part of a month (not to exceed 30% of the tax due). However, this penalty cannot be less than $50.
Failing to file a return or filing a return more than 60 days late results in fees that are the greater of:
- 10% of the tax due for the first month, plus 1% for each additional month or part of a month (not to exceed 30% of the tax due)
- $100, or 100% of the amount required to be shown as tax on the return (whichever is less)
Read more about New York sales tax penalties and late fees here.
New York Sales Tax Return Due Dates
New York’s sales tax returns are typically due on the 20th of the following month. Read more on New York’s website.
Monthly Filing Frequency
January Collection — February 20th
February Collections — March 20th
March Collections — April 20th
April Collections — May 21st
May Collections — June 20th
June Collections — July 20th
July Collections — August 20th
August Collections — September 20th
September Collections — October 22nd
October Collections — November 20th
November Collections — December 20th
December Collections — January 22nd (following year)
Quarterly Filing Frequency
Q1: March – May Collections — June 20th
Q2: June – August Collections — September 20th
Q3: September – November Collections — December 20th
Q4: December – February Collections — March 20th (following year)
Annual Filing Frequency
March – February Collections — March 20th (following year)
New York Sales Tax Holidays
New York does not offer any sales tax holidays in 2018.
Special Notes for Amazon Sellers
Amazon does have a warehouse in New York. Be sure to check to see if your FBA inventory is being stored in New York, as it will create a sales tax obligation.
We can help you determine where Amazon is storing your inventory. Contact us to learn more.