Tax Free Shopping New York

Tax-free shopping in New York is something I get a lot of questions about. So if you are looking for the best places to shop in NYC on a budget read on. The United States doesn’t calculate a national tax for products, but there are tax rules per state, county, and city. New York is among the cities with the highest taxes of the country, the total sales tax is 8.875%. In New Jersey, the sales tax rate is 6.625%. In Canada, depending on the province or territory, you pay either the goods and services tax GST (5%) or harmonized sales tax (HST) which is a combination of federal and provincial taxes. Taxes, therefore range from 5-15%.

Tax-free shopping in New York

Clothing and shoes under $110 are tax free in New York. This rule applies per individual item, so even if you’re buying more products and the total amount is over $110, as long as the individual prices are under $110, no tax is added. For items over $110 the tax is 4%. There is no sales tax on newspapers and magazines, food items purchased at grocery stores, or on prescription drugs.

New York Sales Tax

The 8.875% consists of 4.5% New York City tax, 4% New York State tax and 0,375% Metropolitan Commuter Transportation District surcharge.

Prices are always shown without tax in all shops and restaurants in New York. This is because often there are different taxes calculated. The taxes are always added at the checkout to the total amount.

Outlet Shopping

If you want to save money shopping in New York then I recommend going to one of the outlets in New York or New Jersey. Not only do they offer a wide range of shops conveniently located together, but the sales tax differs in these cities so you can save more money (or buy more clothes!).

Woodbury Common

Woodbury Common (sometimes written as Woodbury Commons) is located in the state of New York in the city of Woodbury. The sales tax rate in Woodbury is 8.63% so a little cheaper than New York City. The same rules apply to clothing and shoes – all clothes under $110 are not taxed and above 4%.

Read more about Woodbury Common here

Jersey Gardens

If you want the ultimate shopping experience, then go tax free shopping in New Jersey at Jersey Gardens (sometimes written as Jersey Garden). Because Jersey Gardens is located in the state of New Jersey, in Elizabeth, different sales tax rules apply. There is no sales tax for shoes and clothing, at all. For all other items the sales tax is 3.3125% because Jersey Gardens is part of the Urban Enterprise Zone Program. If you venture outside of Jersey Gardens the regular sales tax of 6.625% applies.

Read more about Jersey Gardens here

Tax Refund in New York

In the United States, it’s not possible to claim tax returns when you leave the country. Are you still looking for a tourist discount? As a foreign visitor, you are offered an extra discount at Macy’s New York. Keep in mind that there’s a maximum amount of products (or maximum value) you can bring back into Canada. Read more about bringing back goods from New York.