How taxes work in New York
Sales tax. New York charges a 4% statewide sales tax, and counties, cities and special districts add their own on top — which is why the average combined rate of about 8.53% is the number that matters at the till. Groceries are exempt from state tax; some counties tax certain items. Clothing under $110 is exempt from the state portion (NYC fully exempts it).
Property tax. At an average effective rate of about 1.73%, a $350,000 home in New York carries roughly $6,055 a year in property tax before exemptions. New York is a high-property-tax state — factor the tax bill into affordability, not just the mortgage payment. Local assessors set actual bills, so verify with the county for any specific property.
Income tax. Progressive state rates to 10.9%; New York City adds its own income tax of up to ~3.876%. If you are self-employed in New York, you still owe federal self-employment tax plus quarterly state estimates where applicable.
Sales tax · average combined
Property tax · average effective
Chart: DailyFinance.tools · Rates are reviewed averages from our state tax dataset — your exact local rate may differ.
How New York compares with similar states
The states closest to New York on average combined sales tax. Property tax is the average effective rate; income tax shows the structure, not a single rate.
| State | Combined sales tax | Property tax | Income tax |
|---|---|---|---|
| New York (this page) | 8.53% | 1.73% | Progressive |
| Illinois | 8.83% | 2.27% | Flat |
| Arizona | 8.4% | 0.51% | Flat |
| Missouri | 8.35% | 0.97% | Progressive |
| Nevada | 8.23% | 0.53% | None |
| All-state average (51 entries) | 6.61% | 1.04% | — |
What this means for your money in New York
Property tax is the heavy line in New York. At an average effective rate of 1.73% — rank 5 of 51, against an all-state average of 1.04% — a $400,000 home carries about $6,920 a year, roughly $576.67 a month. Because lenders collect property tax through escrow, it raises the monthly mortgage payment directly; affordability calculations that use only principal and interest understate the cost of owning here.
Read together: New York combines an average combined sales tax of 8.53% (rank 10 of 51), an average effective property tax of 1.73% (rank 5 of 51) and progressive income tax brackets. A household comparing states should compare all three against its own pattern — a high earner who rents weighs the income tax most; a homeowner on a fixed income weighs the property tax most.
Major cities in New York
New York City, Buffalo, Rochester, Yonkers, Syracuse. Combined sales-tax rates differ between these cities — sometimes by more than a full percentage point inside the same state — because county and city layers stack on the state base. The New York sales tax guide breaks down the calculation and links the calculator where you can enter your exact local rate.
Calculators for New York residents
- New York Sales Tax Guide & Examples — what you actually pay, with worked amounts.
- Sales Tax & VAT Calculator — add or extract tax at any rate, including your exact New York local rate.
- Mortgage Calculator — include New York property tax in the monthly payment.
- Property Tax Calculator — estimate a specific property's bill.
- Self-Employment Tax Calculator — federal SE tax for New York freelancers.