Remote sellers must register for a New York Certificate of Authority and collect tax once, in the preceding four sales tax quarters, they sold more than $500,000 of goods and made more than 100 sales into New York. Both tests must be met, and SaaS is taxable in New York.
New York at a glance
- Economic nexus threshold: $500,000 and 100 transactions (both tests must be met)
- Measured over: Preceding four sales tax quarters
- Notes: Both tests must be met; sales of tangible personal property
Checked against state guidance in October 2026. Compare every state
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Check your New York sales tax nexus
Enter your sales and number of orders into each state for the period that state measures (usually the current or previous calendar year). The checker compares them with each state’s economic nexus threshold.
Thresholds last reviewed September 2026. States define includable sales differently (gross, retail or taxable), some count marketplace sales and some do not, and a physical presence such as inventory or staff creates nexus on its own. Results are estimates for general information only, not legal, tax or financial advice. Confirm them with your own CPA, tax adviser or attorney before making decisions. Using this tool does not create a client relationship with Catching Numbers Inc.
Do Amazon, Etsy and other marketplace sales count toward the New York threshold?
Marketplaces collect and pay New York tax on the sales they handle. New York’s guidance says a seller that meets the thresholds must still register and file returns even when a marketplace provider is collecting the tax on its sales, so track your marketplace and direct sales into New York together.
When do I have to register and start collecting?
Check at the end of every sales tax quarter. New York’s quarters run March to May, June to August, September to November and December to February. If the four quarters just ended show more than $500,000 and more than 100 sales into New York, you need to register. You must hold a Certificate of Authority before you collect New York tax.
How do I register for New York sales tax?
Apply online for a Certificate of Authority with the New York State Department of Taxation and Finance. There is no fee. New York asks new vendors to apply at least 20 days before they begin making taxable sales, so don’t leave it until the last minute.
What rate do I charge New York customers?
The state rate is 4%, and counties and cities add local tax based on where the order is delivered. The combined rate is 8.875% in New York City, and local rates elsewhere vary by county and city.
Is SaaS taxable in New York?
Yes. New York treats SaaS as the sale of prewritten software, because the customer gets the right to use it, so subscription fees are taxable. Separately stated charges for custom programming are not. If a customer’s users are in several states, the tax can be split by where the software is used.
Is shipping taxable in New York?
Yes, when the item is taxable. Shipping, delivery and handling charges are part of the taxable sale. If one shipping charge covers both taxable and exempt items, the whole charge is taxable unless you allocate it between them.
Do I owe New York income or franchise tax as a remote seller?
Possibly. New York’s corporation franchise tax uses an economic nexus test: a corporation with $1,283,000 or more of New York receipts (the threshold for 2024 to 2026; New York had not published the 2027 amount as of October 2026) has nexus even with no presence there.
Sellers of physical goods may be protected from state income tax by a federal law, P.L. 86-272, if their only activity in the state is soliciting orders that ship from outside it. That protection does not cover SaaS, services or digital products. New York reads that protection narrowly for internet activity. Check your position with our New York income tax nexus guide.
What if I store inventory in New York, including Amazon FBA?
Inventory stored in New York, including in an Amazon FBA or other marketplace warehouse, gives you a physical presence there. Physical presence creates sales tax nexus on its own, whatever your sales total, so you would generally need to register even below the economic threshold.
Frequently asked questions
What is the New York economic nexus threshold for 2026 and 2027?
More than $500,000 of sales of tangible personal property delivered into New York and more than 100 sales, in the immediately preceding four sales tax quarters. Both tests must be met. No change has been announced for 2027 as of October 2026.
What are New York’s sales tax quarters?
March 1 to May 31, June 1 to August 31, September 1 to November 30, and December 1 to the end of February.
Is digital software taxable in New York?
Yes. Prewritten software is taxable however it is delivered, including downloads and SaaS. Custom software is not.
Do clothing sales count in New York?
Clothing and footwear under $110 per item is exempt from the 4% state tax, but some localities still charge their local tax on it. All sales of goods delivered into New York count toward the economic nexus test.
Selling into New York and other states?
We track your sales by state every month as part of your bookkeeping, so you see a threshold coming before you cross it, and your books show exactly what you collected and owe.
General information for remote sellers, checked against state guidance in October 2026. New York rules change and depend on your facts, so confirm your situation with the state or a sales tax advisor before registering or filing. We don’t prepare sales or income tax returns.