Most food and food products sold by grocery and food stores in New York are exempt from sales tax. Prepared foods, heated foods, sandwiches, candy, and soft drinks are taxable. The New York State Department of Taxation and Finance administers these rules through Tax Bulletin ST-283, which lists what is exempt and what is not.
Here is the split at checkout.
| Exempt (sold for home consumption) | Taxable |
|---|---|
| Fresh produce, raw meat, dairy, eggs | Candy and confectionery |
| Bread, canned, packaged, frozen foods | Soft drinks and soda |
| Milk and plain bottled water | Sandwiches, hot or cold |
| Packaged coffee beans, ground coffee, tea | Heated and prepared foods |
| Cooking ingredients (flour, sugar, spices) | Restaurant, deli, and catered meals |
Source: New York State Department of Taxation and Finance, Tax Bulletin ST-283.
How Much Is Sales Tax in New York?
New York’s state base sales and use tax rate is 4%, and local county and city rates stack on top, per Publication 718. The Metropolitan Commuter Transportation District (MCTD) adds 0.375% in New York City and seven surrounding counties. In New York City the combined rate reaches 8.875%.
New York City’s 8.875% rate breaks down as follows.
| Component | Rate | Source |
|---|---|---|
| New York State base | 4% | Publication 718 |
| New York City local | 4.5% | Publication 718 |
| MCTD surcharge | 0.375% | Publication 718 |
| Combined New York City rate | 8.875% | Publication 718 |
The MCTD surcharge applies in New York City plus Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and Westchester counties, per the Tax Department’s sales tax rates and additional taxes bulletin. New York does not levy a separate meals tax on top of these rates.
What Is the Combined Sales Tax Rate in New York by County?
Combined state and local sales tax rates in New York range from 7% to 8.875%, depending on the jurisdiction, per Publication 718 effective March 1, 2025. New York City and the City of Yonkers sit at the top of the range. Rural upstate counties sit at the bottom.
| County or city | Combined rate | Source |
|---|---|---|
| New York City (all five boroughs) | 8.875% | Publication 718 (eff. 3/1/2025) |
| Yonkers (Westchester) | 8.875% | Publication 718 (eff. 3/1/2025) |
| Suffolk | 8.75% | Locality notice ST-25-1 |
| Nassau | 8.625% | Publication 718 (eff. 3/1/2025) |
| Rockland, Putnam, Westchester (outside Yonkers) | 8.375% | Publication 718 (eff. 3/1/2025) |
| Dutchess, Orange | 8.125% | Publication 718 (eff. 3/1/2025) |
| Saratoga (outside Saratoga Springs), Washington, Warren (outside Glens Falls) | 7% | Publication 718 (eff. 3/1/2025) |
Suffolk County’s rate rose from 8.625% to 8.75% effective March 1, 2025, per locality notice ST-25-1. For a live lookup on any address, use Commenda’s sales tax calculator.
Which Grocery Items Are Exempt From New York Sales Tax?
Food and food products sold by food stores for home consumption are exempt from New York sales tax, per Tax Bulletin ST-283. This covers supermarkets, grocery stores, convenience stores, and bodegas. The exemption applies automatically at the register based on the product, not on any paperwork from the shopper.
| Exempt category | Examples | Source |
|---|---|---|
| Fresh produce | Fruits, vegetables in natural state | Tax Bulletin ST-283 |
| Raw proteins | Meat, poultry, fish, seafood | Tax Bulletin ST-283 |
| Dairy and eggs | Milk, cheese, butter, eggs | Tax Bulletin ST-283 |
| Baked goods | Bread, rolls, baked items for home use | Tax Bulletin ST-283 |
| Canned and packaged foods | Retail-packaged shelf goods | Tax Bulletin ST-283 |
| Frozen foods | Items for home preparation | Tax Bulletin ST-283 |
| Beverages | Milk, plain bottled water, 70%–100% natural juice | Tax Bulletin TB-ST-65 |
| Unbrewed coffee and tea | Packaged beans, grounds, tea | Tax Bulletin ST-283 |
| Cooking ingredients | Flour, sugar, spices | Tax Bulletin ST-283 |
Which Food Items Are Taxable in New York?
Candy, soft drinks, sandwiches, heated foods, food sold with seller-provided utensils, and food arranged on plates or platters are taxable even when a grocery store sells them, per Tax Bulletin ST-283. The rule turns on how the food is prepared and served, not on the ingredients.
| Taxable category | Governing rule | Source |
|---|---|---|
| Candy and confectionery | Taxable by product classification | Tax Bulletin ST-283 |
| Soft drinks and soda | Carbonated drinks and fruit drinks under 70% natural juice are taxable | Tax Bulletin TB-ST-65 |
| Sandwiches (hot or cold) | Always taxable, on any carrier | Tax Bulletin TB-ST-806 |
| Heated food | Sold warmer than surrounding air = taxable | Tax Bulletin TB-ST-806 |
| Food with seller-provided utensils | Restaurant-type food = taxable | Tax Bulletin TB-ST-806 |
| Food on plates or platters | Prepared, ready to eat = taxable | Tax Bulletin ST-283 |
Is Candy Taxable in New York?
Yes. Candy, gum, chocolate, and confectionery are taxable in New York, per Tax Bulletin ST-283, including items combined with nuts, fruits, or popcorn such as candied nuts and caramel corn. This is a product-classification rule. Candy is taxed because of what it is, not because a shopper failed to present a certificate.
Exemption certificates play no part in candy sold to ordinary shoppers. Those certificates apply to resellers and exempt organizations, covered in the exemption certificate section below.
Which Beverages Are Taxable in New York?
Soda and carbonated drinks are taxable in New York, while milk, plain bottled water, and qualifying fruit juices are exempt, per Tax Bulletin TB-ST-65. Fruit drinks turn on juice content: drinks with less than 70% natural fruit juice are taxable, and non-carbonated drinks with 70% to 100% natural juice are exempt.
Carbonated water is taxable. Plain bottled water is exempt. Lemonade and cranberry juice cocktail fall below the 70% threshold and are taxable, per Tax Bulletin TB-ST-65.
Is Coffee Taxable in New York?
Packaged coffee beans, ground coffee, and unbrewed tea are exempt in New York, per Tax Bulletin ST-283, because they are food products sold for home preparation. Brewed or hot coffee sold ready to drink is taxable as a prepared beverage. Iced coffee and to-go coffee from a cafe are taxable the same way.
The dividing line is preparation. A bag of beans on a shelf is exempt. A cup poured for the customer is taxable.
Are Prepared Foods Taxable in New York?
Yes. Sales of food and drink by restaurants, taverns, and caterers are taxable whether eaten on-premises or taken out, per Tax Bulletin TB-ST-806. New York applies no separate meals tax, so prepared food is taxed at the location’s standard combined rate, up to 8.875% in New York City.
Three tests make grocery-store food taxable under Tax Bulletin TB-ST-806. Food heated by the seller is taxable. Food sold with seller-provided utensils is taxable. Food arranged on plates or platters ready to eat is taxable. In a deli case, raw sliced turkey and a loaf of bread are exempt, but the made sandwich is taxable.
What Is New York’s Sandwich Rule?
New York taxes sandwiches whether hot or cold, on any carrier such as bread, bagels, rolls, pitas, or wraps, per Tax Bulletin TB-ST-806. The Department’s definition is broad. It sweeps in burritos, gyros, hot dogs, hamburgers, club sandwiches, and open-faced sandwiches, all treated as taxable prepared food.
This is one of New York’s most counterintuitive rules. A cold sandwich carries the same tax as a hot one, even though the identical ingredients bought separately are exempt.
Are SNAP and WIC Purchases Exempt From Sales Tax in New York?
Yes. Purchases paid for with Supplemental Nutrition Assistance Program (SNAP) or Women, Infants, and Children (WIC) benefits are exempt from New York sales tax, to the extent paid with those benefits, under federal program rules recognized by the New York State Department of Taxation and Finance. This can exempt items that would otherwise be taxable.
Hot prepared foods are generally not SNAP-eligible in the first place, so the exemption mainly covers eligible grocery items. On a split-tender sale, the exemption applies to the portion paid with benefits.
When Do You Need an Exemption Certificate for Food Purchases in New York?
Exemption and resale certificates apply to wholesale buyers, resellers, and exempt organizations, not to retail shoppers. Grocery exemption happens automatically by product classification at the register. A shopper buying exempt milk never presents a certificate, and a shopper buying taxable candy cannot use one to avoid tax.
Certificates matter for businesses buying inventory for resale or for qualifying exempt organizations. Commenda explains the mechanics in its guide to the sales tax exemption certificate and in its New York sales tax exemption overview.
How Do You Classify Taxable vs Exempt Food Items at Point of Sale?
Map every SKU to a Tax Bulletin ST-283 category, flag the taxable items (candy, soda, sandwiches, heated food) in the point-of-sale (POS) system, and apply the location’s combined rate. A stock-keeping unit (SKU) that changes state when prepared, like turkey that becomes a sandwich, needs its own taxable code.
Register for a Certificate of Authority before collecting any tax, using Commenda’s guide to the sales tax permit. Misclassifying prepared food as exempt is a common sales tax audit trigger, so keep transaction records that support each decision within the statute of limitations window.
How Commenda Helps With New York Grocery Tax Compliance
New York grocery tax depends on product-level classification, and one mistagged SKU repeated across thousands of transactions is real audit exposure. Commenda’s indirect tax software automates product-level taxability classification and applies the correct combined rate for each jurisdiction, so exempt staples and taxable prepared foods are treated correctly at the register.
Use Commenda’s sales tax calculator to confirm the combined rate for any New York address, and see the state overview on Commenda’s New York sales tax rates page. Book a demo call to get a free review of your food taxability classifications.
