Tax-Free Shopping New York

Tax-free shopping in New York is something I get a lot of questions about. Are you looking for the best places to shop in NYC on a budget? I’ll share my tips with you! 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 in the country, with a total sales tax of 8.875%. In New Jersey, the sales tax is 6.625%. Because the sales tax (VAT) in the United Kingdom is 20%, there are some items that are cheaper in New York than in the UK.

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 buy multiple things and the overall sum exceeds $110, no tax is imposed as long as the individual prices are less than $110. For items over $110, the tax is 8.875%. There is no sales tax on newspapers and magazines, food items purchased at grocery stores, or prescription drugs.

New York Sales Tax

The 8.875% New York Sales Tax 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 different taxes are often calculated. Taxes are always added to the total amount at the checkout.

Outlet Shopping and taxes in New York

If you want to save money while shopping in New York, I recommend heading 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 8.63%.

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 Jersey Gardens, the regular sales tax of 6.625% applies.

Read more about Jersey Gardens here

Tax Refund in New York

It’s not possible to claim tax returns when you leave the United States. 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 into the UK. Read more about bringing back goods from New York.