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When may I need to collect tax from online sales in New York?

On Behalf of | Feb 11, 2022 | Federal And State Tax Collections |

If you operate a website offering goods for sale online, you may need to collect sales tax from your customers. Online sellers shipping goods to New York State may register as a sales tax vendor with the Department of Taxation and Finance.

According to, sellers must collect sales tax on tangible personal property. The law defines these items as having a “material existence” that customers could touch or see. Examples include raw materials and pre-written code in software.

When may a business outside New York need to add sales tax?

Businesses located outside of New York may collect sales tax when shipping goods to Empire State residents. If you advertise products through the internet, you may need to add sales tax to your customers’ orders.

Officials may mandate a sales tax when shipping or delivering more than $500,000 to New York State residents during the previous four quarters. If the number of your orders did not exceed 100, you may not have an obligation to collect sales tax.

How does sales tax differ between New York State and its counties?

As noted by, New York State adds sales tax worth 4% of the total order. Each county, however, adds its own sales tax. Sellers may need to collect additional tax based on the county where a customer has products delivered.

Westchester County, for example, requires collecting 4.375%. The combined tax between the state and county adds 8.375% to each purchase. If you ship goods to New York City, you may need to include an additional sales tax of 4.875% to the 4% state sales tax for a total of 8.875%.

Officials may impose sales tax for products shipped to New York State residents. If your goods classify as tangible personal property, you may need to add sales tax based on your gross receipts or shipment volume.