The sales tax rate in Larchmont, NY is 8.375%. That single rate at the register is actually three layers stacked together: New York State’s 4% base, Westchester County’s 4% local tax, and a 0.375% surcharge for the Metropolitan Commuter Transportation District.1New York State Department of Taxation and Finance. Find Sales Tax Rates2New York State Department of Taxation and Finance. Sales Tax Rates, Additional Sales Taxes, and Fees Westchester’s county portion has been re-authorized through November 2027.3Westchester County Department of Finance. County Sales Tax A fair amount of what you buy is exempt, which is why your effective tax bill is usually smaller than 8.375% of your spending.
What You Pay 8.375% On
Most tangible goods carry the full rate: furniture, electronics, appliances, sporting equipment, and the like. Vehicles are taxed on the net price after a trade-in, so a $22,500 car with a $4,500 trade-in is taxed on $18,000.4New York State Department of Taxation and Finance. How Discounts, Trade-Ins, and Additional Charges Affect Sales Tax
Several services are taxable too. Restaurant meals and prepared food carry the full rate whether you dine in or take it to go; the exception is food sold unheated and in the same packaging a grocery store would use.5New York State Department of Taxation and Finance. Sales by Restaurants, Taverns, and Similar Establishments Short-term hotel stays are taxed. So are maintenance and repair services on personal property, such as fixing an appliance or a car.6New York State Senate. New York Tax Law 1105 – Imposition of Sales Tax
One category trips people up: most digital downloads and streaming services are not subject to New York sales tax. Downloaded music, e-books, video, and streaming subscriptions currently sit outside the tax base. Software is the exception and is taxable whether you buy it on a disc or download it.
What’s Exempt
Groceries
Food sold for home preparation is exempt. Milk, bread, produce, canned goods, dairy, and baked goods all qualify when sold unheated and in grocery-store form. Heat the food, prepare it as a meal, or serve it on-premises and the exemption disappears.7New York State Department of Taxation and Finance. Food and Food Products Sold by Food Stores and Similar Establishments
Clothing and Footwear Under $110
Clothing and footwear priced below $110 per item are exempt from the 4% state portion of the tax.8New York State Department of Taxation and Finance. Clothing and Footwear Exemption The 4% Westchester County portion and the 0.375% MCTD surcharge only come off if the county has elected to extend the exemption, which not all MCTD localities have done. If a single item costs $110 or more, the entire price is taxable at the applicable rate.9New York State Department of Taxation and Finance. Lists of Exempt and Taxable Clothing, Footwear, and Items Used to Make or Repair Exempt Clothing
Medical and Hygiene
Prescription medications and medical equipment such as wheelchairs and prosthetic devices are fully exempt. Dietary supplements and health foods generally qualify as well.10New York State Department of Taxation and Finance. Listings of Taxable and Exempt Foods and Beverages Sold by Food Stores and Similar Establishments Feminine hygiene products have been exempt from New York sales tax since 2016.
Nonprofits
Charitable and religious organizations that qualify can apply for an exemption by filing Form ST-119.2 with the state, which, if approved, issues an Exempt Purchase Certificate the organization presents to vendors.11New York State Department of Taxation and Finance. Sales Tax Exempt Organizations
Buying From Out of State
If you order something from an out-of-state retailer or online seller that doesn’t collect New York sales tax, you owe use tax at the same 8.375% rate. It covers everything from catalog furniture to equipment bought from a website not registered as a New York vendor. Most people don’t know this obligation exists, and auditors know they don’t.
Individuals can report use tax on their New York State income tax return, or by filing Form ST-140 (annual) or Form ST-141 (periodic). Registered businesses report it on their regular sales tax returns. Unregistered businesses that aren’t sole proprietorships use Form ST-130, due within 20 days of bringing the property or service into New York.12New York State Department of Taxation and Finance. Use Tax for Businesses
If You Sell in Larchmont
Any business making taxable sales in Larchmont must register with the New York Department of Taxation and Finance and get a Certificate of Authority before the first sale, even if sales are occasional or run from home.13New York State Department of Taxation and Finance. Register as a Sales Tax Vendor Selling without one can trigger penalties up to $500 for the first day and up to $200 for each additional day, capped at $10,000.14New York State Department of Taxation and Finance. Sales and Use Tax Penalties
New businesses usually start on a quarterly filing schedule, but once taxable sales hit $300,000 or more in a quarter you move to monthly filing starting the following month.15New York State Department of Taxation and Finance. Filing Requirements for Sales and Use Tax Returns Keep transaction records for at least three years after filing each return.16New York State Department of Taxation and Finance. Recordkeeping for Businesses
Selling through Amazon, Etsy, or a similar platform usually means the platform is handling your New York sales tax. Marketplace providers that have made or facilitated more than $500,000 in sales and more than 100 transactions of tangible personal property delivered in New York must register and collect on their third-party sellers’ behalf.17New York State Department of Taxation and Finance. Sales Tax Requirements for Marketplace Providers The same threshold triggers a direct registration obligation for out-of-state sellers shipping to New York buyers without a marketplace.18New York State Department of Taxation and Finance. Registration Requirement for Businesses With No Physical Presence
Late filing or late payment carries a 10% penalty for the first month plus 1% per additional month, up to 30%, with a $50 minimum. Owners and officers can be held personally liable as “responsible persons” for sales tax collected from customers but never remitted, and that exposure survives a business closure or bankruptcy.14New York State Department of Taxation and Finance. Sales and Use Tax Penalties