New York does not have a special tax refund program for tourists

Unlike some countries in Europe and Asia, New York State and New York City do not offer tax refunds to visitors who purchase goods during their stay. If you buy something in a store in New York, you pay the sales tax at checkout, and that money does not come back to you when you leave.

The sales tax in New York City is 8.875 percent, and it applies to most purchases — clothing, electronics, souvenirs, and restaurant meals. Outside the city, the rate varies by county but is typically between 7 and 8.875 percent. Once you have paid it, the tax stays with the state and city.

This is different from the value-added tax (VAT) refund systems you may have used in countries like France, Germany, or Japan, where tourists can reclaim a percentage of what they spent on goods they take out of the country. The United States does not use a VAT system, and individual states do not offer tourist refunds.

Key Takeaways

  • New York State and New York City do not refund sales tax to tourists or any other shoppers.
  • Sales tax in New York City is 8.875 percent and applies to most purchases at the register.
  • The United States does not have a value-added tax system like many countries do, so tourist refund programs do not exist here.
  • If you see a business claiming to offer tax refunds to tourists, it is not a legitimate government program.

Why the United States does not have tourist tax refunds

Sales tax in the United States is collected by states and cities to fund local services — schools, roads, police, and public transit. Unlike a VAT system, which is designed to tax goods at each stage of production and then refund the tax when goods leave the country, sales tax is a final point-of-sale tax. It is meant to be paid by whoever buys the item, whether they live there or not.

The federal government does not require states to offer refunds to non-residents, and no state has chosen to do so. This is partly because sales tax rates vary widely by location — even within New York City, some neighborhoods have different rates depending on local tax districts — which would make a refund system complicated to administer.

What you actually pay when you shop in New York

When you see a price tag in a New York store, that price does not include sales tax. The tax is added at checkout. A $100 item in New York City will cost you $108.88 at the register.

Some items are exempt from sales tax in New York. Groceries (unprepared food you cook at home), prescription medications, and certain medical equipment do not have sales tax added. Restaurant meals, prepared foods, and snacks do have tax. Clothing and shoes under $110 are also tax-free in New York, though this exemption applies only to the portion under $110 — if you buy a $150 jacket, only the first $110 is tax-free.

If you are visiting from another state or country, you still pay New York sales tax on everything you buy. There is no exemption for out-of-state residents or international visitors.

Scams claiming to offer tourist tax refunds

Some businesses, particularly in tourist areas like Times Square, advertise "tax refund" services to visitors. These are not legitimate government programs. They typically work by charging you a fee to process a fake refund or by offering you a discount that is smaller than the fee they charge.

If a business tells you they can get your sales tax back, they are either running a scam or offering a discount under a misleading name. There is no legal way to recover sales tax you have paid in New York.

If you have been charged a fee for a "tax refund" service, contact the New York State Department of Consumer Protection or the Better Business Bureau to report it.

How to budget for sales tax when visiting

When you are planning what to spend in New York, remember to add 8.875 percent to the price tag for anything you buy in the city. If you are visiting other parts of New York State, add 7 to 8.875 percent depending on the county.

One way to reduce what you spend on tax is to buy groceries instead of eating every meal at restaurants. A sandwich from a deli counter costs less with tax than a restaurant meal, and if you buy ingredients to cook in your hotel room, you avoid tax entirely.

If you are making a large purchase — a piece of art, jewelry, or electronics — ask the store whether they offer any discounts. Some stores in tourist areas do offer discounts to visitors, though these are voluntary and not required by law. The discount is separate from sales tax and does not reduce the tax you owe.

Tax refunds if you are a New York resident

If you live in New York and overpaid your income tax during the year, you may receive a refund when you file your state tax return. This is different from sales tax refunds — it is money the state collected from your paychecks that you are may have access to to get back.

New York residents file their state income tax return with the New York Department of Taxation and Finance. If you are a visitor, you do not file a New York income tax return unless you worked in New York during your visit.

Frequently Asked Questions

Can I get my sales tax back if I leave the country?

No. The United States does not have a tax refund system for tourists leaving the country, and New York does not offer one either. Once you pay sales tax at checkout, that money is final.

Do I have to pay sales tax on everything I buy?

No. Groceries (unprepared food), prescription medications, and medical equipment are tax-free. Clothing and shoes under $110 are also tax-free. Everything else — restaurant meals, prepared foods, electronics, souvenirs — has sales tax added.

Is the price on the tag the final price I pay?

No. The price on the tag does not include sales tax. In New York City, you will pay an additional 8.875 percent at checkout. Outside the city, the rate varies by county.

What should I do if a store claims they can refund my sales tax?

That is not a legitimate service. Report the business to the New York State Department of Consumer Protection or the Better Business Bureau. There is no legal way to recover sales tax you have paid.

Do other states offer tax refunds to tourists?

No. No state in the United States offers sales tax refunds to tourists or non-residents. This is a feature of some countries with value-added tax systems, but not the United States.