Lightspeed Retail - 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 priced at $110 or more.

If your store location is in New York City, this tax exemption can be managed via settings in your Ecommerce Store and point of sale. 

Shopify Users: Please see our Shopify Documentation for setup instructions on the Shopify side.  You can also find general documentation about Tax Overrides on Shopify here.

Note: Moving forward, you must apply the proper Tax Class to each item as items are created.

1. Create a New Tax Class
   Create a new Tax Class called "NYC 110" by navigating to Settings > Tax Classes
   
   
   
   
   
2. Edit your Tax Rate for NYC
   Locate your NYC Tax Rate in Settings > Tax Rates. Reset your Tax Rate to 0% and add the NYC 110 Tax Class at your regional rate.  
   
   Note: Per the disclaimer above, in this example that rate is 8.875%. Your regional rate may differ.
   
   
   
   
3. Set NYC 110 Tax Class 
   Set the NYC 110 Tax Class on all clothing and footwear items over $110 in Price and All Other Non-Clothing or Footwear Items regardless of price. This will ensure that Tax is not applied to Clothing and Footwear items under $110. You will need to remember to always set the Tax Class on new items in these categories.