The sales tax rate in Monroe County, New York is 8%, made up of a 4% New York State tax and a 4% Monroe County local tax.1Monroe County, NY. Finance That rate applies to most retail purchases and taxable services delivered in the county, but several sizeable exemptions, including most groceries, medicine, residential energy, and clothing under $110 per item, mean what you actually pay depends on what you’re buying.
What the 8% Applies To
New York State imposes its 4% sales tax on retail sales of tangible personal property and certain services.2New York State Senate. New York Tax Law 1105 – Imposition of Sales Tax3New York State Senate. New York Tax Law 1210 – Taxes of Cities and Counties1Monroe County, NY. Finance
New York’s sales tax is a destination tax. The rate is based on where the buyer takes delivery, not where the seller is located.4New York State Department of Taxation and Finance. Find Sales Tax Rates If your order ships to a Monroe County address, the 8% rate applies regardless of where the business operates.
What’s Exempt
Most unprepared food sold at grocery stores is exempt.5New York State Department of Taxation and Finance. Food and Food Products Sold by Food Stores and Similar Establishments Produce, dairy, meat, bread, and cereal all qualify. Food sold heated, food prepared by the seller and ready to eat, and food for on-premises consumption are taxable. Sandwiches are taxable whether heated or not.
Prescription and over-the-counter drugs and medicines are exempt when the product is intended to diagnose, cure, treat, or prevent illness in humans.6New York State Department of Taxation and Finance. Drugstores and Pharmacies That covers pain relievers, antacids, cough remedies, and dandruff treatments, along with medical devices like prosthetics and hearing aids. Professional services from lawyers, accountants, and physicians are not subject to sales tax because no tangible personal property is being sold.
Items That Look Exempt but Aren’t
Candy, soft drinks, and bottled water are taxable even when they sit on the shelf next to exempt food.7New York State Department of Taxation and Finance. Listings of Taxable and Exempt Foods and Beverages Sold by Food Stores and Similar Establishments Fruit drinks with less than 70% real fruit juice are taxable, which sweeps in most juice-flavored beverages. Energy drinks, sports drinks, lemonade, flavored water, and chocolate-coated nuts are all taxed at the full 8%.
Residential Energy
Residential heating fuels and electricity are exempt from the 4% state portion.8New York State Department of Taxation and Finance. Residential Energy Sources and Services Qualifying sources include natural gas, electricity, fuel oil, propane in containers of 100 pounds or more, coal, and wood for heating. Whether the 4% county portion also applies varies by locality; the Department of Taxation and Finance publishes Publication 718-R with the current local rate for residential energy in each jurisdiction.
Clothing and Footwear Under $110
Clothing and footwear priced below $110 per item or pair are completely exempt in Monroe County. Both the state 4% and the county 4% are waived.9Monroe County, NY. County Executive Encourages Shoppers to Take Advantage of New Sales Tax Exemption The threshold is per item, not per receipt. Five shirts at $100 each are all exempt, but a single $110 jacket is taxed at the full 8% on its entire price.10New York State Department of Taxation and Finance. Clothing and Footwear Exemption
The exemption is for everyday apparel. Protective and athletic equipment worn on the body stays taxable at any price: hard hats, bicycle helmets, sports pads, ice skates, roller skates, and safety goggles.10New York State Department of Taxation and Finance. Clothing and Footwear Exemption An athletic uniform is exempt; the gloves, helmet, and pads that go with it are not.
Vehicle Purchases
Register a car, truck, or other vehicle in Monroe County and you owe the full 8% on the purchase price. A New York dealer collects the tax at the time of sale, and you bring the bill of sale to the DMV as proof.11NY DMV. Sales Tax Information In a private sale, the buyer and seller complete Form DTF-802 and the DMV calculates and collects the tax at registration.
If you bought the vehicle out of state and paid sales tax there, New York credits you for what you already paid, which can reduce or eliminate what’s owed at registration. Form DTF-804 is used to claim the credit.11NY DMV. Sales Tax Information Vehicles received as gifts from family members can be registered tax-free with the proper documentation.
Home Repairs vs. Capital Improvements
Whether your contractor charges you tax depends on the kind of work. Repair and maintenance work is taxable, with the full 8% applying to labor and materials combined. Fixing a broken step, replacing a faucet, or re-pointing a chimney all count as repair work.12New York State Department of Taxation and Finance. Contractors – Repair, Maintenance, and Installation Services to Real Property
Capital improvements are not taxable to the homeowner. A project qualifies as a capital improvement only if it meets all three conditions:13New York State Department of Taxation and Finance. Capital Improvements
- It substantially adds to the property’s value or appreciably extends its useful life.
- It becomes permanently affixed so that removing it would damage the property or the item itself.
- It’s intended to be permanent, not temporary or seasonal.
Building a deck, installing a hot water heater, or putting in new kitchen cabinets are capital improvements. Repairing a broken step, replacing a thermostat, or painting existing cabinets are taxable maintenance. On a capital improvement project, the contractor pays sales tax on materials and does not charge you sales tax on the job. You should get a completed Form ST-124 (Certificate of Capital Improvement) for your records.14New York State Department of Taxation and Finance. Certificate of Capital Improvement
Hotel Stays
Guests at hotels, motels, and similar lodging in Monroe County pay an additional 6% hotel room occupancy tax on top of the 8% sales tax, for a combined rate of 14%.15eCode360. Monroe County Code Article II – Hotel Room Occupancy Tax That occupancy revenue goes directly to the county rather than through the general sales tax sharing formula.
Use Tax on Out-of-State Purchases
If you buy something from an out-of-state seller who doesn’t collect New York sales tax, you owe the same 8% as use tax. This happens most often with online orders from smaller retailers, purchases made while traveling, or goods shipped from states with no sales tax.
Use tax is reported on Line 59 of your New York State income tax return (Form IT-201). For individual purchases under $1,000 each, the state offers a simplified lookup chart based on federal adjusted gross income, so you don’t have to track every receipt. If you made any single purchase of $1,000 or more without paying sales tax, the chart doesn’t apply. You calculate the exact amount owed on Form ST-141 and report that total on Line 59.16New York State Department of Taxation and Finance. Instructions for Form IT-201, Full-Year Resident Income Tax Return