Taxes & Refunds
Restaurants and retailers never include the sales tax – 8.875% – in their prices, so beware of ordering the $4.99 lunch special when you only have $5 to your name. Several categories of so-called luxury items, including rental cars and dry cleaning, carry an additional city surcharge of 5%, so you wind up paying an extra 13.875% in total for these services. Clothing and footwear purchases under $110 are tax free; anything over that amount has a sales tax. Hotel rooms in New York City are subject to a 14.75% tax, plus a flat $3.50 occupancy tax per night. Since the US has no nationwide value-added tax (VAT), there is no opportunity for foreign visitors to make ‘tax-free’ purchases.