The sales tax rate in Southampton, NY is 8.75 percent, the same rate that applies everywhere in Suffolk County. That total has been in effect since March 1, 2025, when the county raised its local portion by an eighth of a percent.1New York State Department of Taxation and Finance. New York State Local Tax Rate Change Notice The same 8.75 percent hits the register whether you’re buying furniture in Southampton Village or picking up a restaurant check in Hampton Bays.
How the 8.75 Percent Breaks Down
Three taxing authorities stack to reach the combined rate:
- New York State: 4 percent
- Suffolk County: 4.375 percent (raised from 4.25 percent on March 1, 2025)
- Metropolitan Commuter Transportation District: 0.375 percent, a regional surcharge funding downstate transit
The New York State Department of Taxation and Finance collects all three together and distributes revenue to each jurisdiction.2New York State Department of Taxation and Finance. Find Sales Tax Rates The breakdown matters because certain exemptions drop only one layer rather than the whole tax, as with residential energy and clothing below.
What You Pay Tax On
The default rule in New York is that tangible personal property is taxable unless a specific exemption says otherwise. That covers furniture, electronics, appliances, building materials, and motor vehicles.3New York State Department of Taxation and Finance. Quick Reference Guide for Taxable and Exempt Property and Services
Restaurant meals and drinks, including alcohol served on premises, are taxable at the full 8.75 percent. Hotel stays and short-term rentals are too, and legislation effective March 1, 2025 extended sales tax to short-term rental platforms that facilitate bookings.3New York State Department of Taxation and Finance. Quick Reference Guide for Taxable and Exempt Property and Services Several service categories carry the tax as well: repair and maintenance work on personal property, telecommunications, utility services, and landscaping or cleaning performed on real property.
Repairs Versus Capital Improvements
One distinction catches homeowners off guard. Repair and maintenance work on your property is taxable, but a genuine capital improvement is not. To qualify as a capital improvement, the work must substantially add value or extend the property’s life, become permanently attached, and be intended as a permanent installation. Replacing a broken step is a taxable repair. Adding a new deck is a tax-free capital improvement.4New York State Department of Taxation and Finance. Capital Improvements
For capital improvement work, contractors should collect a Certificate of Capital Improvement (Form ST-124) from the customer. Without it, the contractor can be held liable for uncollected tax even if the project genuinely qualifies. Offering the certificate upfront saves trouble on both sides.4New York State Department of Taxation and Finance. Capital Improvements
What’s Exempt or Taxed at a Lower Rate
Groceries and Prescription Drugs
Most unprepared food bought at grocery stores is fully exempt. Meat, dairy, produce, baked goods, and cereals all qualify.5New York State Department of Taxation and Finance. Food and Food Products Sold by Food Stores and Similar Establishments The exemption disappears once food is prepared for immediate consumption, which is why a deli sandwich is taxable but a package of sliced turkey is not.
Prescription drugs and medicines used to treat or prevent illness are exempt under New York Tax Law, as are certain medical equipment and supplies.6New York State Senate. New York Tax Law 1115 – Exemptions From Sales and Use Taxes
Residential Energy
Gas, electricity, fuel oil, and other residential energy sources get partial relief. The 4 percent state tax and the 0.375 percent MCTD tax are both waived, but the county’s 4.375 percent still applies.7New York State Department of Taxation and Finance. Residential Energy Sources and Services So your home electric bill carries 4.375 percent rather than the full 8.75 percent.1New York State Department of Taxation and Finance. New York State Local Tax Rate Change Notice Telecommunications services don’t get this break and remain taxable at the full combined rate.
Clothing Is Not Fully Exempt Here
This is where many shoppers get tripped up. New York State exempts clothing and footwear priced under $110 per item from the 4 percent state sales tax.8New York State Department of Taxation and Finance. Clothing and Footwear Exemption The exemption extends to local taxes only if the county has opted in, and Suffolk County has not. Clothing under $110 bought in Southampton still carries 4.75 percent tax, which is the county’s 4.375 percent plus the MCTD’s 0.375 percent.9New York State Department of Taxation and Finance. Publication 718-C Sales and Use Tax Rates on Clothing and Footwear
Clothing and footwear priced at $110 or more per item gets no exemption at all and is taxed at the full 8.75 percent. If you’ve heard that clothing is tax-free in New York, that’s only true in jurisdictions where the local government has adopted the exemption.
Hotel Stays Carry an Extra Tax
Visitors staying in Southampton pay more than just sales tax on a room. On top of the 8.75 percent sales tax, Suffolk County imposes a separate 3 percent hotel-motel occupancy tax on the nightly rate.10Suffolk County, NY. Suffolk County Hotel Motel Tax Program That brings the total tax on a hotel room to roughly 11.75 percent before any additional fees. Every facility providing overnight lodging for a fee in the county must collect it.
Buying From Out of State
If you buy something from an out-of-state retailer that doesn’t collect New York sales tax, you owe use tax at the same 8.75 percent rate. The use tax exists so out-of-state sellers can’t undercut local retailers by skipping the tax. Individual consumers report use tax on their New York State income tax return, on the line provided for purchases where no sales tax was collected.
In practice, most of this gets handled automatically. New York requires marketplace providers like Amazon, eBay, and Etsy to collect and remit sales tax on behalf of third-party sellers for tangible personal property delivered to a New York address.11New York State Department of Taxation and Finance. Sales Tax Requirements for Marketplace Providers The 8.75 percent appears at checkout when you ship to Southampton regardless of where the seller sits. The use tax line matters for the gaps: smaller vendors, private-party purchases, or anything else bought from out of state without tax collected.