thread Clothing Tax New York in Orders, Menu Items, Catalog & Fulfilment

Clothing Tax New York

Mdringel — Sat, 20 Sep 2025 11:06:58 GMT

Hi,

The new Sales Tax setting will allow you to configure tax rules for the New York Clothing and Footwear tax, which exempts clothing and footwear under $110 from NY State sales tax and from some Countys. So for eg in Chautauqua county it is exempt but in Albany county is is not exempt and the rate is 4% (just the county rate not the NYS rate).

Will Square automatically calculate that or do I need to manually create tax rules? And if I need to create rules how do I do it for each county it is shipped to?
list of all the rates per County https://www.tax.ny.gov/pdf/publications/sales/pub718c.pdf

@Elyn

Thank you.

Re: Clothing Tax New York

MayaP — Fri, 09 Sep 2022 13:26:50 GMT

Hello @Mdringel,

Welcome to The Seller Community. I am happy to help.

You will need to create your own tax rules. Is this for your Square Online Store, or in-person payments?

Re: Clothing Tax New York

Mdringel — Fri, 09 Sep 2022 14:47:02 GMT

Hi MayaP,

Thank you for your help.

It would be for in-person and online sales.

Thank you.

Re: Clothing Tax New York

MayaP — Fri, 09 Sep 2022 17:20:51 GMT

You are going to have to go in and manually add the sales tax per country into the system for both in-person and online. Unlike other some other features, the sales tax will not sync over from your Square Dashboard to your Square Online Dashboard. I hope that helps! Please let me know if you have any other questions.

To set up taxes for Square Online:

1. Open the Square Online Overview page.

2. Select Shared Settings > Sales Taxes.

To setup taxes for Point of Sale:

1. Visit Account & Settings in your online Square Dashboard > Business information > Sales tax.

2. Click Create tax.

3. Enter the tax name, rate, and locations where the tax applies.

4. Apply the tax to all items in your library or select specific items. You can also apply the tax to Custom Amounts and include a Service Charge.

Note: You can choose to Add Tax to Item Price, which adds the tax as a separate line item to the price or Include tax in item price, which shows one amount – the combined sales tax and item price.

5. Click Save.

Re: Clothing Tax New York

Mdringel — Fri, 09 Sep 2022 20:44:58 GMT

Thank you.

Then it will look at the shipping address and calculate the tax accordingly?

How do I set it up that certain County’s it 4.5% under $110 but 8.875% over $100, and other County’s it’s tax free under $110 and 8% over $110?

Re: Clothing Tax New York

Mdringel — Fri, 09 Sep 2022 21:01:32 GMT

On square.online it just allows me to add a state, and no Countys, and I can’t put in anything about over or under $110.

Re: Clothing Tax New York

BernadetteA — Fri, 09 Sep 2022 23:27:26 GMT

Hi @Mdringel 👋 I'm stepping in for @MayaP

Can you confirm your website name so I can take a look at your current settings? Itemized tax rules created through the Square dashboard will sync to your online store, but only for pickup and delivery fulfillment.

You should, however, be able to create taxes for individual counties with the manual tax calculator in the Square Online dashboard. You can also use the automatic tax calculator which stays up to date with each state tax rules.

Re: Clothing Tax New York

Mdringel — Sun, 11 Sep 2022 01:39:48 GMT

Hi,

Thank you.

It is cottondressy.com, I didn’t publish it yet.

Re: Clothing Tax New York

BernadetteA — Wed, 14 Sep 2022 17:53:11 GMT

Just wanted to check in with you, @Mdringel to let you know that I am still looking into this. 😊

Have you made any changes to your settings since the last time we spoke? It looks like you are using the automatic tax settings, but I want to confirm.

Re: Clothing Tax New York

Mdringel — Wed, 14 Sep 2022 17:56:52 GMT

Hi @BernadetteA,

Thank you for looking into this.

I haven’t made any changes. It’s setup to automatically calculate, but it doesn’t calculate correctly for clothing orders under $110.

Re: Clothing Tax New York

BernadetteA — Sat, 17 Sep 2022 01:27:11 GMT

As far as I know, the automatic tax calculator should comply with all state tax rules, but I am trying to request more information and clarification regarding the tax rules you mentioned in this thread. Just to confirm, this is strictly for clothing and footwear, correct?

Re: Clothing Tax New York

Mdringel — Mon, 19 Sep 2022 02:03:42 GMT

Yes, just clothing and footwear. Here is the link for it: https://www.tax.ny.gov/pdf/publications/sales/pub718c.pdf

It’s not calculating correctly.

Re: Clothing Tax New York

Mdringel — Thu, 06 Oct 2022 14:44:11 GMT

Hi @BernadetteA,

I hope you are doing well, I wanted to follow up if you where able to make any headway in this.

Thank you.

Re: Clothing Tax New York

BernadetteA — Sat, 08 Oct 2022 23:19:44 GMT

Hi @Mdringel 😊 Yes doing well, and I hope you are the same.

I do not have an update yet. I'm trying to clarify if the rules in the link you posted apply to online sales as well. I will ping the team for another update, and will post once I have more information for you.

Thank you again for your continued patience.

Re: Clothing Tax New York

Mdringel — Mon, 07 Nov 2022 18:49:03 GMT

Hi @BernadetteA,

How are you? I hope all is well.

I wanted to know if you heard anything from the team, if there was any update.

No rush,

Thank you.

Re: Clothing Tax New York

BernadetteA — Thu, 10 Nov 2022 03:14:56 GMT

Hey there! 😊

I actually just received an update to share. I was informed that the website is not able to distinguish one item from another when applying a tax rule created through the Square Online dashboard. You can create Itemized Tax Rules through the Square dashboard, however, these rules will only sync to products that are delivered or picked up through the site.

If your fulfillment method is shipping, the itemized tax rules will not apply. Shipped orders would follow the tax rules setup through the website dashboard, but again, the system would no be able to differentiate the exact item type. 😕

I can't recall, but did you ever state how your items would be fulfilled? Do you know for certain that the tax rules you posted for NY also apply to items purchased online?

Re: Clothing Tax New York

Mdringel — Thu, 10 Nov 2022 18:47:15 GMT

Hi,

Thank you for your response. Yes my order are being fulfilled online and are being shipped.
Yes, the NY tax rules apply for order shipping also, it goes after where it is being shipped to.

Can the website be updated to include these rules ?

Here is a link to the NYS rule on clothing:

https://www.tax.ny.gov/pdf/publications/sales/pub718c.pdf

Re: Clothing Tax New York

BernadetteA — Fri, 11 Nov 2022 04:30:43 GMT

Thanks for clarifying. While I was researching this, I came across another rep who was speaking to a seller about this specific MCTD tax. It appears that tax was added automatically, yet this particular seller wanted it removed because they were not aware of what it was for.

I'm going to need to follow up with a few more Square teams to determine if the tax is truly auto-added during checkout on the live site, and if this particular tax is applying to ALL items in an order, regardless of type. As far as I know, we do not have a setting that you could use to specify if an item is clothing or something else, like furniture.

I'll let you know what I find out! 🤞

Re: Clothing Tax New York

emilyz123 — Mon, 11 Dec 2023 20:02:40 GMT

has this been resolved yet? I am also facing this issue and not able to figure out a work around?

Re: Clothing Tax New York

JJ_ — Tue, 12 Dec 2023 19:27:09 GMT

Hello there @emilyz123

I will go ahead and recommend you reach out to our Square Online support team, so they can assist in pointing you in the right direction to meet your business needs.