New York Sales Tax for Amazon Sellers
Here is how New York sales tax works for Amazon sellers. New York has one of the highest-population markets in the US and one of the most-aggressive state tax authorities. Marketplace facilitator coverage is excellent for Amazon FBA sellers, but cross-channel sellers must watch the dual-threshold economic nexus carefully.
New York sales tax for Amazon sellers: the short answer
Marketplace facilitator status: New York has had marketplace facilitator (MF) law in effect since 2019. New York implemented marketplace facilitator law on June 1, 2019. The state requires marketplaces with cumulative annual gross receipts exceeding $500K AND 100+ separate transactions to collect on behalf of sellers.
What this means for you as an Indian FBA seller: for all your Amazon US sales delivered to New York customers, Amazon collects the appropriate New York sales tax (state + applicable local) and remits to the state directly. You see the line items in your Seller Central report. You do not need to register, collect, or remit New York sales tax on Amazon sales.
New York sales tax rates
New York has a 4% state base rate. New York City adds 4.5%, plus 0.375% Metropolitan Commuter Transportation District = 8.875% in NYC. Upstate counties range 7-8.5%. Amazon calculates correctly by ZIP.
FBA fulfillment centers in New York
New York has 4+ Amazon FBA fulfillment centers in Staten Island (LGA9), Albany area (ALB1, ALB2), and Long Island (ISP1). Brooklyn-based receiving station for last-mile delivery only.
Marketplace facilitator rules: when you DO have New York obligations
Three scenarios where Amazon\'s MF coverage doesn\'t apply to you:
- Selling outside Amazon: if you sell on your own Shopify store, eBay (not always MF), or wholesale to New York-based B2B buyers, you may have direct obligations once you cross the economic nexus threshold of $500K + 100 transactions.
- Physical presence: if your LLC has a New York-based employee, office, or owned warehouse, that triggers physical nexus. New York sales tax registration is required regardless of channel.
- Owned property & income tax: physical presence may also trigger New York state income tax obligations on the portion of profit attributable to the state.
If you do need to register
If one of the above applies, registration is via New York State Department of Taxation and Finance at tax.ny.gov. The process typically takes 7-14 business days and requires your EIN, LLC details, and operating-history information. Filing frequency depends on volume - monthly, quarterly, or annually.
New York-specific FBA notes
- New York's 2019 click-through nexus law (predating Wayfair) is still on the books but largely superseded by economic nexus + MF coverage.
- NYC has a separate "commercial rent tax" that does not apply to Amazon FBA sellers but can apply if you rent NYC office space.
- Clothing and footwear under $110 per item are exempt from NY state sales tax (4%); local NYC tax still applies. Amazon handles this exemption automatically.
- Strict on use-tax enforcement for non-MF channels. If you sell via Shopify to NY customers above threshold, register.
Common questions
Does inventory at a New York FBA center create nexus?
Historically yes (physical presence). Post-MF laws, this distinction is largely moot for sales tax - Amazon collects regardless. For state income tax, inventory presence creates a weak nexus that New York generally does not pursue aggressively against foreign-owned LLCs whose only state contact is FBA inventory.
Do I need a New York seller\'s permit for Amazon FBA only?
No, for Amazon FBA-only operations. New York\'s MF law has Amazon as the registered remitter. You don\'t need your own permit unless you sell directly via other channels above threshold.
What about returns processed in New York?
Amazon\'s MF remittance covers full refund flows. The sales tax originally collected gets refunded automatically when the order refunds. No separate filing required on your part.
New York-specific quote
If you have non-Amazon channels or New York physical presence, we handle registration + ongoing filings.
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