Sales Tax Nexus in New York: What Online Sellers Need to Know

The Short Answer

New York is one of the few states that requires you to meet both a dollar threshold AND a transaction count before you owe sales tax — not just one or the other. You need $500,000 in sales AND more than 100 transactions in the preceding four sales tax quarters to trigger a New York nexus obligation. Miss either threshold and you're not required to collect.

Economic Nexus Threshold

• Dollar threshold: Over $500,000 in gross receipts from tangible personal property delivered into New York
• Transaction threshold: More than 100 separate transactions into New York
• Both required: You must meet BOTH thresholds — not just one
• Measurement period: Preceding four New York sales tax quarters
• Effective date: June 21, 2018

New York's sales tax quarters run on a non-standard calendar:

• March 1 – May 31
• June 1 – August 31
• September 1 – November 30
• December 1 – February 28/29

This matters for calculating your lookback period — it's not the standard Q1–Q4 calendar.

Registration deadline: File your Certificate of Authority within 30 days of meeting both thresholds; begin collecting 20 days after that.

Does New York Count Marketplace Sales Toward Your Threshold?

Yes. New York includes marketplace-facilitated sales (Amazon, Etsy, eBay, etc.) when calculating whether you've crossed the $500,000 / 100-transaction threshold.

However, once you're registered, the marketplace facilitator collects and remits the tax on those sales — you're not double-taxed. But the sales count toward your threshold, so you may be required to register even if most of your New York sales flow through marketplaces.

What Taxable Products Look Like in New York

New York City has one of the highest combined sales tax rates in the country — the combined rate stacks the state rate, NYC's local rate, and an MCTD surcharge. Rates elsewhere in the state vary by locality — check the NY Department of Taxation and Finance's rate lookup for your buyer's exact combined rate.

• Clothing: Items under $110 per item are exempt from state sales tax. Items $110 or over are taxable on the full amount. Some localities tax all clothing regardless of price — check county rules.
• Groceries/Food: Most food for home consumption is exempt. Prepared food, candy, soda, heated items, and food sold with utensils are taxable.
• Digital goods and SaaS: New York broadly taxes software, SaaS, and digital products. Remotely accessed software is treated the same as prewritten software — taxable. If you sell software or subscriptions, New York considers that taxable.

How to Register in New York

New York is not an SST member. Register via New York Business Express:

• Portal: businessexpress.ny.gov
• Cost: Free
• Document issued: Certificate of Authority (Form DTF-17)
• Timeline: A few business days

Note: New York's portal has CAPTCHA requirements. Taxero handles this during registration.

Filing Requirements

New York assigns filing frequency based on your liability:

• Quarterly (standard): Most vendors file quarterly
• Monthly (PrompTax): Annual liability over $500,000 requires PrompTax (accelerated payment system, roughly monthly)
• Annual: Small vendors with minimal liability

Due dates: Last day of the month following the sales tax quarter. Form ST-100 for quarterly filers; ST-809 for monthly.

What Happens If You Don't Register

New York's penalty structure:

• Late filing penalty: 5–10% per month (tiered)
• Late payment penalty: 5% per month up to 25%
• Fraud penalty: Up to 50% additional
• Interest: At the applicable underpayment rate

New York has a Voluntary Disclosure and Compliance Program that can waive monetary penalties (and avoid potential criminal charges) for eligible taxpayers who come forward before the Department contacts them.

How Taxero Handles New York

New York's dual-threshold requirement — $500K AND 100 transactions in the non-standard sales tax quarter lookback — is one of the trickier qualification rules in the country. Taxero tracks both simultaneously using New York's specific quarter definitions. When you approach either threshold, we flag it. When both are met, we initiate registration and configure your rate calculations, including NYC's distinct local rate structure. We handle your quarterly filings and PrompTax enrollment if you grow into that tier.

---

Get Your Free Nexus Report

Are you approaching New York's combined threshold? Check your exposure in 2 minutes.

Check Your New York Nexus Exposure →