New York Tip Calculator
New York's local sales tax varies more than almost any other state's, and its tipped wage is set by region. Here is a calculator that starts from the state figures.
Sales tax in New York
New York's 4% state rate plus a 4.54% population-weighted average of county and city taxes — one of the largest local shares in the country, which is why the statewide average says little about any one county.
- State rate
- 4%
- Average local
- 4.54%
- Combined average
- 8.54%
Tax Foundation — rates as of 1 July 2026.
New York lets employers count tips toward the minimum wage
New York sets tipped rates by region and type of employer, and only hospitality employers may take a tip credit at all. For tipped food service workers the state publishes an $11.35 cash wage plus a $5.65 tip credit in New York City, Long Island and Westchester, and $10.70 plus $5.30 in the rest of the state.
- Minimum wage
- $17.00 downstate, $16.00 upstate
- Cash wage before tips
- $11.35 downstate, $10.70 upstate (food service)
- Maximum tip credit
- $5.65 downstate, $5.30 upstate (food service)
NY Dept. of Labor — as of 22 October 2026.
This is here because people ask about it and are often told the opposite of the truth. It is a fact about what an employer must pay, not a rule about what you should add. The amount is yours — including nothing.
What else is worth knowing in New York
The statewide average hides a lot
New York levies only 4% at state level but has one of the largest local shares in the country, averaging 4.54%. County rates differ enough that the 8.54% average says little about any one place — the state tax department publishes a rate for every county and city, and that list is the thing to check rather than the average.
Tipped wages are set by region and industry
New York does not have one tipped wage. The state sets rates by region and type of employer, and only hospitality employers may take a tip credit at all. For tipped food service workers the state publishes an $11.35 cash wage plus a $5.65 tip credit downstate, and $10.70 plus $5.30 upstate. Which figures apply depends on where you are and what kind of business it is.
New York City is its own answer
If you are in one of the five boroughs the rate is not the state average at all — it is a single statutory 8.875%, published by the state tax department and the same across every borough. There is a separate page for that.
For the general question of whether to tip on tax at all, there is the tax and tip calculator. For a specific job, every service calculator has its own sourced range.
Sources & methodology
Sources reviewed: October 22, 2026
Sales-tax and wage figures are quoted from published government and research tables, with the effective date of each table shown beside it. The tipping ranges themselves are etiquette guidance and are cited separately — they describe common practice in the U.S., not an obligation, and they do not change by state.
- Tax Foundation — State and Local Sales Tax Rates, Midyear 2026 (rates as of 1 July 2026)Source for New York's state rate, average local rate and combined population-weighted average. Rates as of 1 July 2026.
- New York State Department of Labor — Minimum Wage (including tipped food service worker rates by region)Primary source for New York's regional minimum wage and the published cash wage and tip credit for tipped food service workers.
- The Emily Post Institute — General Tipping GuideStates the restaurant tipping ranges as percentages of the pre-tax amount (15–20% sit-down, 10% buffet).