Shopify - NYC Clothing Tax

Disclaimer: The tax rates shown in this documentation and in our examples are for demonstration purposes only.  Your local tax laws and rates may change.  The rates in this document should not be considered accurate, and should not be used for your own tax rates. 

Please consult a local tax professional if you have any questions about your local tax rates.

NYC Clothing Tax

As of 2014, in New York City there is no sales tax on an item of clothing or footwear that sells for less than $110. An item of clothing or footwear that sells for more that $110 is subject to the full regional 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 sell for $110 or more.

If your store location is in New York City, this tax exemption can be managed via settings in Shopify and your point of sale solution. Start by setting a Tax Override up in Shopify.

1. Create a Collection 
   Navigate to Products > Collections and create a collection in Shopify called "New York 110 Tax". This collection 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.
   
   
   
   
2. Create a Tax Override
   Next, navigate to Settings > Taxes > Destination to create a new Tax Override. 
   
   
   
   
   Adjust the tax override settings to apply to Products in the New York 110 Tax Collection.
   
   
   
   
3. 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