In New York City, there is no sales tax on an item of clothing or footwear that costs less than $110. An item of clothing or footwear that costs more that $110 is subject to the full 8.875% tax rate. Sales tax is calculated per item, so even if a shopper buys two or more items that add up to $110 or more, they only pay tax on the items that individually cost $110 or more.
If your store location is in New York City, this tax exemption can be managed via settings in Shopify and point of sale. Start by setting a Tax Override up in Shopify.
- Create a Collection
Navigate to Products > Collections and create a collection in Shopify called "New York 110 Tax". This collections should include all Clothing and Footwear that has a price of less than $110. If you sell lots of other types of products, adjust the collection criteria to target only those products that meet the rule.
- Create a Tax Override
Next, navigate to Settings > Taxes to and create a new Tax Override.
Adjust the tax override settings to apply to Products in the New York 110 Tax Collection.
- Setup your New York Tax Class in Point of Sale
Next, follow the setup instructions for your point of sale.
Lightspeed Retail New York City Tax Setup
Lightspeed Onsite New York City Tax Setup