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 your Ecommerce Store and point of sale.
NOTE: You will need to apply the proper Tax Class to each item moving forward as they are created.
- Create a New Tax Class
Create a new Tax Class called "NYC 110" by navigating to Settings > Tax Classes
- 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 8.875%
- 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 cost. 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.