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NY State Expands Sales Tax Exemption

Joe Raedle, Getty Images

The pricetags might not change, but a new sales tax exemption just made it a little cheaper to update your spring wardrobe. New York State has eliminated its share of sales taxes on all clothing and footwear items priced under $110.

Until yesterday, that exemption only covered items priced at $55 or less. If you bought a $100 dress yesterday in Utica, you would have paid $4.00 in state sales tax. Today, you can buy that same dress without adding state sales tax.

The sales tax isn’t completely gone, though. The exemption is just on the state portion of sales tax, which is 4%. The rest of the sales tax goes to the county or city where the item is purchased. Local sales taxes vary across the state, running anywhere from 3% to 4.875%.

Here in Oneida County, we’re tied with Erie County for having the second-highest local sales tax in the state, at 4.75%. Only New York City charges more in local sales taxes.

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