Extra Savings with NYS Sales Tax Exemption This Black Friday

The New York State Department of Taxation and Finance today reminded bargain hunters and retailers that clothing and footwear items sold for less than $110 are exempt from New York State’s 4% sales tax. Several counties and New York City exempt these items from local sales tax as well.

In all, the New York State and available local exemptions provide consumers with more than $300 million in tax savings—and more than $1 billion annually.

“We don’t reserve our sales tax holidays for certain dates on the calendar,” said NYS Tax Department Acting Commissioner Nonie Manion. “It’s the gift that keeps on giving: every day is a sales tax holiday in New York State on qualifying clothing and footwear purchases, providing consumers more purchasing power during the holiday season and throughout the year.”

Shoppers statewide who make qualifying purchases don’t have to pay the 4% state sales tax.

In addition, Chautauqua, Chenango, Columbia, Delaware, Greene, Hamilton, Tioga, and Wayne counties, as well as New York City, exempt clothing and footwear purchases under $110 from their local sales taxes.

This means an exemption for shoppers of nearly 9% in New York City and 8% in the eight participating counties. Even in counties that don’t offer the exemption, qualifying purchases will still be exempt from the 4% state sales tax, though the local sales tax (ranging from 3% to 4 7/8%) will be in effect.

The state exemption alone translates into about $900 million of savings annually. The combined amount from the state and local sales tax exemptions is more than $1 billion annually.

Serious savings for shoppers

For example, a mother in Brooklyn, shopping for her child in New York City, purchases a pair of sneakers for $100, two shirts at $40 each, and two pairs of $55 pants for a total cost of $290. She would have paid $25 in sales tax without the exemption.

Likewise, an uncle in Wayne County, shopping for his niece in Lyons, purchases three shirts at $20 each and a pair of $40 pants for a total of $100. The combined state and local sales tax exemptions on his purchase are $8.

Source: New York State Department of Taxation and Finance