If you’re a remote seller delivering taxable goods into New York, you trigger NY sales tax obligations once you exceed $500,000 in gross receipts AND more than 100 sales delivered into New York in the immediately preceding four sales tax quarters. New York is one of the last states still using a conjunctive (“AND”) two-prong test — and it’s also one of the most operationally demanding states to comply with, especially for non-US founders.
This guide walks through the 2026 rules in detail, with worked examples, the foreign-seller registration playbook, the part-quarterly filing trap, and the back-tax exposure pathway if you crossed the threshold years ago and never registered. If you’d rather skip the reading and have us run your entire NY compliance — registration through filing — for a single flat fee, book a free consultation or read about our full-service offering.
Do you have to collect New York sales tax as a remote seller?
The short answer: yes, if you cross both prongs of NY’s economic nexus test, or if you have any physical presence (including FBA inventory stored in a New York Amazon warehouse).
The 2026 economic nexus threshold
New York’s economic nexus rule lives in New York’s definition of taxable sales activity is set out in the state Tax Law, and application turns on the specific facts of each transaction. If you need to confirm whether a particular activity falls within New York’s sales tax base, contact us for a current review., and the thresholds have not changed since the law went into effect in 2019:
| Element | Value |
|---|---|
| Sales-dollar threshold | $500,000 in cumulative gross receipts from sales of tangible personal property delivered into NY |
| Transaction-count threshold | More than 100 sales of tangible personal property delivered into NY |
| Test type | Conjunctive — both prongs must be met |
| Measurement period | Immediately preceding four sales tax quarters |
| Effective date | New York’s economic nexus registration requirement became effective retroactive to June 21, 2018, following the Supreme Court’s Wayfair decision (see TSB-M / Notice N-19-1). |
Why NY’s “AND” test is different
Most states use a disjunctive (“OR”) nexus test: cross either the dollar threshold OR the transaction count, and you’re in. After widespread legislative cleanup post-Wayfair, many states have dropped the transaction prong entirely.
New York didn’t.
In NY, you must cross both prongs simultaneously. That has practical consequences:
- A seller with $2 million in NY sales but only 80 transactions (large B2B average order value) is not triggered by economic nexus alone.
- A seller with $300,000 in NY sales across 5,000 small consumer orders is not triggered either.
- A seller with $510,000 across 101 transactions is triggered.
This is the single most-misjudged rule in NY remote-seller compliance. Sellers see “$500K threshold” in a comparison chart, see they’re under it, and stop reading — missing that they need to be under either prong to stay safe.
What counts toward the threshold
The measurement period is the immediately preceding four sales tax quarters, and NY’s sales tax quarters are unusual — they don’t align with calendar quarters. NY’s sales tax quarters end February 28/29, May 31, August 31, and November 30.
So at any given moment, you’re testing the rolling four-quarter window ending at the most recent NY quarter close.
Worked example. A NZ-based Shopify seller wants to test their nexus position as of December 1, 2026. The “immediately preceding four sales tax quarters” are:
- Q4 2025 (Dec 1, 2025 – Feb 28, 2026)
- Q1 2026 (Mar 1 – May 31, 2026)
- Q2 2026 (Jun 1 – Aug 31, 2026)
- Q3 2026 (Sep 1 – Nov 30, 2026)
If across that window they delivered $620,000 in goods to NY addresses across 142 transactions, they have crossed both prongs and must register for a Certificate of Authority — and start collecting — at the next sale.
Marketplace sales and the threshold. This is a frequent misunderstanding. Even though Amazon, eBay, Etsy, Walmart, and other marketplace facilitators collect and remit NY sales tax for you, NY has taken the position that marketplace-facilitated sales generally still count toward your own $500K / 100-transaction calculation. If you’re an FBA seller with $700K in Amazon NY sales and zero direct sales, you can still be required to register — and NY’s Marketplace Sellers FAQ is explicit:
“My home-based business in New York State sells handmade items solely through a marketplace provider that collects sales tax on my behalf. Do I need to register as a sales tax vendor? Yes.” — NYDTF Marketplace Sellers FAQ
If your facts are even slightly unusual (mixed direct + marketplace, or wholesale-only, or B2B-only), contact us for a current nexus review before you assume you’re safe.
New York sales tax rates remote sellers actually charge
The statewide rate is just 4%, but combined with local and MCTD surcharges you can hit 8.875% in New York City. NY uses destination-based sourcing, so you charge the rate at the buyer’s delivery address.
State rate vs. local rates
New York’s sales tax stack has three layers:
- State sales tax — 4% (NY Tax Law § 1105)
- Local sales tax — set by each city or county, varies roughly from 3% to 4.875%
- MCTD surcharge — 0.375% in 12 specific counties
Combined rates in 2026 typically land between 7% and 8.875%.
NYC and the MCTD surcharge
The Metropolitan Commuter Transportation District (MCTD) adds 0.375% in New York City (all five boroughs) plus Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and Westchester counties.
For a delivery to a Manhattan address, the breakdown is:
| Component | Rate |
|---|---|
| State | 4.000% |
| New York City local | 4.500% |
| MCTD | 0.375% |
| Total | 8.875% |
This is one of the highest combined rates in the country, and it’s where some sales tax software gets the math subtly wrong on filing — the MCTD piece reports as a separate jurisdiction line on Form ST-100, not bundled into the NYC local. Hand-keying or copy-pasting from a spreadsheet without the right schedule mapping is a common source of NY filing notices.
Destination-based sourcing
NY sources to where the goods are delivered:
“The jurisdiction (locality) where the item is delivered usually determines the local rate. The point of delivery is where ownership (title) and/or possession of the item is transferred by the seller to the purchaser.” — NYDTF Sales Tax Rates page
For a remote seller shipping to a Buffalo (Erie County) buyer, you charge the Erie County combined rate — not the NYC rate, not your own state’s rate.
What’s taxable — and the NY clothing exemption trap
Tangible personal property is taxable by default. Clothing and footwear under $110 per item are exempt from the 4% state portion — but some localities still tax it. SaaS treatment is nuanced. Shipping is taxable when the underlying product is.
Taxable tangible personal property
NY Tax Law § 1105 imposes sales tax on retail sales of tangible personal property unless specifically exempted. Most physical products you’d ship into NY — electronics, home goods, cosmetics, supplements, accessories, sporting equipment — are taxable.
Clothing under $110 — the exemption that isn’t always
Under NY Tax Law § 1115(a)(30), items of clothing and footwear costing less than $110 per item or pair are exempt from the 4% state sales tax. New York City and certain counties also exempt them from local tax. Other localities do not opt into the exemption and continue to tax sub-$110 clothing.
If you’re an apparel seller, this is a sourcing minefield:
- A $79 t-shirt shipped to a NYC ZIP — fully exempt.
- The same $79 t-shirt shipped to a county that hasn’t opted in — taxable at the local rate.
- A $179 jacket — fully taxable everywhere (over the $110 line).
The combination of dollar threshold + per-locality opt-in means generic tax tables get this wrong constantly. If apparel is more than ~10% of your NY sales, this rule alone can justify outsourcing your compliance. Our full-service team handles the per-jurisdiction logic for you — you don’t configure anything.
SaaS and digital products
NY’s treatment splits into two buckets:
- Pre-written (canned) software, including SaaS where access to functionality is provided to the customer, has historically been treated as taxable by NYDTF. The NYDTF Quick Reference Guide for Taxable and Exempt Property and Services lists “prewritten (canned/off-the-shelf/standard) computer software (whether transferred by CD-ROM, Internet download, remote access, etc.)” as taxable.
- Custom software developed for a specific customer is generally not taxable.
- Information services are specifically enumerated as taxable.
SaaS taxability in NY is fact-dependent. The boundary between a taxable software license, a taxable information service, and a non-taxable professional service can shift based on your contract language and what the customer actually receives. If you’re a SaaS founder with NY customers, contact us for a current taxability review of your specific product — and see our SaaS sales tax by state guide for the broader landscape.
Shipping and handling
Shipping and handling charges follow the underlying goods:
- Underlying product taxable → shipping taxable.
- Underlying product exempt → shipping exempt.
- Mixed shipment → allocate, or the entire shipping charge becomes taxable.
Separately stating shipping on the invoice is required if you want any chance of the exemption flowing through.
How to register for a NY Certificate of Authority as a remote seller
You apply for a Certificate of Authority via NY Business Express, at least 20 days before beginning taxable sales. There’s no fee. Foreign sellers without an SSN can register using an EIN (which the IRS issues to non-US entities and individuals).
The Business Express registration
The registration steps:
- Create a NY.gov Business account.
- Apply via Business Express → DTF-17 application path.
- Provide entity details, FEIN/EIN, ownership and responsible-person details, projected NY sales, NAICS code, and business address.
- Receive Certificate of Authority — must be displayed at any NY place of business (n/a for purely remote sellers, but the certificate itself is still issued).
What non-US sellers need (no SSN, no US bank, no problem — usually)
This is where most “how to register in NY” guides go silent. Foreign sellers usually face three pain points:
- No SSN. The application asks for SSN on responsible-person fields. Non-US individuals don’t have one. The workaround is typically an ITIN (IRS individual taxpayer identification number) where required, but in many cases an EIN for the entity is sufficient and the responsible-person SSN field can be handled with foreign passport data. The exact path depends on your entity type — if you’re an Australian Pty Ltd with no US presence, the requirement is different from a US LLC owned by a non-resident.
- No US bank account. NY does not require a US bank account to register. It does require one to pay by ACH debit through Web File. Non-US sellers can use a US-payable mechanism via a service like Wise Business or a similar arrangement. We handle this for our clients as part of our service.
- No EIN. If your foreign entity has no EIN, you’ll need to obtain one from the IRS first — Form SS-4, fax/mail processing for foreign applicants, typically 4–6 weeks.
For the broader foreign-seller playbook, see our sales tax for foreign sellers without an SSN guide.
Responsible person rules
Under NY Tax Law § 1133, “responsible persons” — typically officers, directors, and certain employees with control over tax remittance — can be held personally liable for unpaid trust-fund sales tax. This survives the dissolution of the entity.
For non-US founders, the practical implication is that the person listed as the responsible person on DTF-17 has personal exposure for NY sales tax that the company collected but didn’t remit. We structure registrations to make sure the right person is named and that the compliance machinery is rock-solid behind them.
Timeline and effective date
Apply at least 20 days before you begin making taxable sales. Practically, NYDTF turnarounds vary — some applications are processed quickly, others take weeks if there are responsible-person verification questions. Don’t time your launch to a same-day registration assumption.
Filing frequency, due dates, and the part-quarterly trap
New registrants default to quarterly filing. If your taxable receipts exceed certain thresholds, you get bumped to part-quarterly (essentially monthly) filing — which is where unprepared sellers get caught off guard.
Annual vs quarterly vs part-quarterly vs monthly
| Annual sales tax liability | Frequency | Form |
|---|---|---|
| Less than $3,000 over four quarters | Annual | ST-101 |
| Default for new registrants and most mid-size sellers | Quarterly | ST-100 |
| Taxable receipts over $300,000 in a quarter | Part-quarterly (monthly) | ST-809 / ST-810 |
| Very high volume (PrompTax) | Accelerated monthly | ST-810 |
The $300,000 quarterly threshold
This is the trap. If a remote seller hits a strong holiday quarter — say $310,000 in Q3 (Sep–Nov) — NY can move them from quarterly to part-quarterly filing. Part-quarterly means filing monthly returns plus a quarterly reconciliation. The administrative load roughly triples, and the due dates compress.
The trigger isn’t always automatic in your service. If you don’t notice the bump-up notice from NYDTF and keep filing quarterly, you’ll start accumulating late-filing penalties on the months you missed.
2026 due dates
Most NY sales tax returns are due the 20th of the month following period end.
| Period | Period end | Return due |
|---|---|---|
| Q4 2025 | Feb 28, 2026 | March 20, 2026 |
| Q1 2026 | May 31, 2026 | New York quarterly sales tax filers face recurring 20th-of-the-month due dates following each quarter-end, and the specific calendar varies year to year. If you need to confirm an upcoming NY filing deadline, contact us for a current review. |
| Q2 2026 | Aug 31, 2026 | September 20, 2026 |
| Q3 2026 | Nov 30, 2026 | December 20, 2026 |
| Annual ST-101 | Feb 28, 2026 | March 20, 2026 |
NY has an e-file mandate — most taxpayers must Web File via Online Services. You don’t get to mail a paper ST-100.
Marketplace facilitators: what Amazon, eBay, Etsy collect for you
Marketplace facilitators have collected and remitted NY sales tax on facilitated sales since New York’s marketplace provider collection rules took effect in 2019, with the precise effective date depending on the provision at issue. If you operate or sell through a marketplace into New York, contact us for a current review.. But you may still need to register and file — even if 100% of your sales go through Amazon.
What marketplaces must collect
Under New York’s Tax Law defines marketplace and vendor concepts that drive collection responsibility, and application depends on the specific facts. If you are unsure whether you qualify as a vendor or marketplace provider in NY, contact us for a current review., a marketplace provider that facilitates sales of tangible personal property delivered to NY addresses must collect and remit NY sales tax on those facilitated sales. This covers:
- Amazon (including FBA orders)
- eBay
- Etsy
- Walmart Marketplace
- Most other major platforms
The marketplace gives you a Certificate of Collection documenting that they’re collecting on your behalf. For more on the broader rules, see our marketplace facilitator laws by state guide.
What you still owe
Here’s where most guides stop and most sellers get burned: the marketplace collecting does not eliminate your registration obligation in NY.
NYDTF’s position, as quoted in their Marketplace Sellers FAQ, is that a marketplace seller making sales into NY through a facilitator generally must still register for a Certificate of Authority and file returns reporting facilitated sales as nontaxable (with the appropriate exclusion). The state wants visibility into the activity, even if the tax is being remitted by Amazon.
Practically, this means:
- You register for a Certificate of Authority.
- You file ST-100 quarterly returns (or the appropriate frequency).
- On each return, you report your facilitated sales and claim the marketplace exclusion.
- Your tax due to NY is typically zero on those sales — but the filing obligation is real.
This is why “I just sell on Amazon, I don’t need to do anything in NY” is wrong, and it’s why our FBA sales tax guide covers this in detail for Amazon sellers.
Direct sales off the marketplace
If you also have direct sales (Shopify, your own checkout, wholesale orders), those are not facilitated, and you are responsible for collecting and remitting NY sales tax on them. This is where the real return-prep work happens.
What happens if you crossed the threshold and never registered
NY can assess back tax, interest, and penalties stretching back to the date you should have registered. The Voluntary Disclosure and Compliance Program (VDCP) limits look-back to a defined period and waives penalties — but only if you come forward before NYDTF contacts you.
Back-tax and penalty exposure
If NYDTF discovers you through audit, marketplace data sharing, or another taxpayer’s return, you’re looking at:
- Back tax — the sales tax you should have collected on every taxable NY sale since you crossed the threshold. (This is uncollectible from your customers after the fact, so it comes out of your margin.)
- Late-filing penalty — under the ST-100 instructions, 10% of the tax due for the first month plus 1% for each additional month, minimum $50.
- Interest — accruing from the original due date at the rate set by the Commissioner.
- Personal liability exposure under NY Tax Law § 1133 for responsible persons.
Combined exposure on a large back-period assessment can reach roughly 25–30% on top of the underlying tax — and that’s before the underlying tax that’s now coming out of your pocket.
NY Voluntary Disclosure and Compliance Program
NY operates a Voluntary Disclosure and Compliance Program with three core benefits:
- Limited look-back — typically 3 years, rather than the open-ended period available to NYDTF on unfiled returns.
- Penalty waiver — civil penalties waived for cooperative voluntary disclosure.
- Interest still applies, but penalty relief is significant.
Eligibility requires that you are not currently registered, not already under audit or contact by NYDTF, and that you make full disclosure and pay the agreed back tax + interest. Many states allow anonymous initiation of VDA negotiations through a representative — NY’s program follows a similar pattern in practice.
The catch: the moment NYDTF contacts you (audit notice, jeopardy assessment, marketplace data lead), VDCP eligibility is gone. Speed matters.
How STCU handles VDAs
We run VDAs end-to-end as part of our voluntary disclosure agreement service: exposure quantification, anonymous approach to NYDTF, agreement negotiation, back-period return preparation, payment arrangement, and prospective registration in one workflow. The seller doesn’t speak to NYDTF directly. The fee is fixed.
DIY vs. done-for-you: when to outsource New York compliance
Hidden costs of DIY
NY is not a state where you set up the major SaaS sales tax platforms, click “auto-file,” and walk away. The actual operational load includes:
- Rolling four-quarter nexus monitoring — recalculating against NY’s non-calendar quarters every quarter end.
- Filing-frequency transition management — moving from quarterly to part-quarterly when you cross $300K, and back, without missing a return.
- Per-jurisdiction rate management — county and city rates change; the MCTD line is reported separately on ST-100.
- Clothing exemption logic — per-locality opt-ins for sub-$110 items.
- Marketplace exclusion reporting — filing ST-100s with facilitated sales correctly carved out.
- Notice handling — every NYDTF notice (and you will get them — frequency change letters, missing return notices, math reconciliations) needs a response on a deadline.
- Foreign-seller mechanics — EIN procurement, US-payable banking, responsible-person designation.
If you’re a Shopify seller doing $1.2M into NY, the hidden cost of DIY is usually 2–4 hours per month of founder time, a software bill of $50–$300/month, and a 10–20% chance of a notice that costs another half-day to clear up. None of that is what you started your business to do.
What full-service compliance covers
Our service handles the entire NY workflow:
- Initial nexus assessment (worked across all 50 states, not just NY)
- Sales tax registration with NYDTF, including the foreign-seller mechanics
- Monthly or quarterly ST-100 / ST-810 preparation and filing
- Remittance from a US-payable account
- Notice response
- Filing-frequency change management
- Annual reconciliation and review
- VDA where back-period exposure exists
One flat fee, no software to learn
You don’t configure tax software. You don’t connect APIs. You don’t build a monitoring dashboard. You don’t read ST-100 instructions. You send us your sales data the way it already comes out of Shopify, Amazon, or your accounting system, and we do the rest. Single fee, no per-transaction charges.
This is built for the seller who said: “I just want this off my desk.”
Frequently asked questions
What is the New York economic nexus threshold for remote sellers in 2026?
More than $500,000 in cumulative gross receipts from NY sales of tangible personal property AND more than 100 sales delivered into NY in the immediately preceding four sales tax quarters. Both prongs must be met — NY uses a conjunctive test.
Do I need a New York Certificate of Authority if I only sell on Amazon?
Generally yes. NYDTF’s Marketplace Sellers FAQ explicitly states that a seller making NY sales solely through a marketplace provider must still register as a sales tax vendor. You file ST-100 returns reporting the facilitated sales as nontaxable.
Can a foreign seller register for New York sales tax without an SSN or US bank account?
Yes. EINs (and ITINs where required) substitute for SSN on the application; NY does not require a US bank account to register, though you’ll need a US-payable mechanism to remit via Web File. See our foreign sellers without an SSN guide.
How often do remote sellers file New York sales tax returns?
Default is quarterly. Sellers under $3,000 in annual sales tax liability may file annually. Sellers exceeding $300,000 in taxable receipts in a quarter are moved to part-quarterly (monthly) filing.
Is SaaS taxable in New York?
Pre-written software, including remote-access models, has historically been treated as taxable by NYDTF. The treatment of any specific SaaS product depends on the contract and the nature of what the customer receives. Contact us for a product-specific review.
Does New York tax shipping and handling?
Shipping and handling follow the underlying goods. Taxable goods → shipping taxable. Exempt goods → shipping exempt. Mixed shipments require allocation.
What is the New York sales tax rate for online sales?
New York imposes a 4% state sales tax plus local rates and a 0.375% MCTD surcharge in the Metropolitan Commuter Transportation District, with combined rates in New York City reaching 10.375% (4% state + 6% NYC local + 0.375% MCTD); see NY DTF sales tax rates bulletin.. Sourcing is destination-based, so you charge the rate at the buyer’s address.
Do marketplace sales count toward the $500,000 / 100-transaction threshold?
Generally yes per NYDTF guidance. Even though the marketplace is collecting, the underlying sales typically count toward your own economic nexus calculation. If your facts are unusual, get a current review.
What happens if I should have registered in New York years ago?
You’re exposed to back tax, interest, and late-filing penalties. The Voluntary Disclosure and Compliance Program limits look-back (typically 3 years) and waives penalties — but only if you come forward before NYDTF contacts you. See our VDA service.
Is clothing really tax-free in New York?
Clothing and footwear under $110 per item are exempt from the 4% state sales tax. NYC and some counties also exempt them from local tax. Other localities still tax sub-$110 clothing, so the answer depends on the buyer’s address.
Stop reading. Let us run your NY compliance.
If you’ve made it this far, you understand New York is operationally demanding — and you probably also understand it’s not the only state you have to worry about. Sales Tax Compliance USA handles your entire US sales tax compliance — nexus assessment, registration, calculation, filing, remittance, and audit defence — across all 50 states, for a single flat fee. No software to learn. No per-transaction charges. Built for cross-border founders, FBA sellers, SaaS companies, and anyone who’d rather have someone handle this for them.
Book a free consultation or read more about what’s included in our service.
Last verified: May 10, 2026.
This article is for informational purposes only and does not constitute tax advice. Consult a licensed tax professional before acting on any of this content.
