If your limited liability company (LLC) sells physical products or certain types of services, you will need to collect and pay sales tax. In New York, the first step is visiting the department of taxation and finance website and registering for sales tax in order to acquire a seller’s permit, or sales tax permit.
What Products and Services Are Subject to Sales Tax in New York?
Tangible goods sold are subject to sales tax in New York. Services subject to sales tax include motor vehicle repair, appliance repair, and computer repair. The repair and maintenance of real property are also subject to sales tax. Groceries and prescription medicines are exempt from sales tax.
New York Sales Tax Rate
The sales tax rate in New York is 4%.
Five states have no sales tax. Colorado has the lowest sales tax at 2.9%, while California has the highest rate at 7.25%.
How to Register for New York Sales Tax
In New York, acquire a seller’s permit by following the department of taxation and finance’s detailed instructions for registration:
- Register for an account on the New York business express website.
- Fill out the sales tax registration form.
- There is no fee to register for sales tax in New York.
Use our Sales Tax Calculator to calculate taxes and total purchase amount.
In New York, and across the country, collecting sales tax is a must if you want to avoid potentially heavy fines and even closure. It’s crucial that you follow your state’s laws, and you might consider consulting with an accountant or tax attorney to make sure you’re in full compliance.