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Sales Tax Treatment of Restaurant Meals Purchased with Certain

Sales Tax Treatment of Restaurant Meals Purchased with Certain 2025

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This memorandum from the New York State Department of Taxation and Finance provides guidance on the sales tax treatment of restaurant meals purchased with third-party discount certificates and coupons. It clarifies that when a restaurant accepts a discount certificate or coupon for which it is not reimbursed, the sales tax should be calculated on the discounted price of the meal rather than the original price. The document includes examples to illustrate how to compute sales tax in such scenarios.

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What is the NY tax rate?

New York has a graduated corporate income tax, with rates ranging from 6.5 percent to 7.25 percent. New York also has a 4.00 percent state sales tax rate and an average combined state and local sales tax rate of 8.53 percent. New York has a 1.54 percent effective property tax rate on owner-occupied housing value.

What is NY special tax?

In New York, the sales tax rate can be made up of three different sales tax rates: The New York state sales tax rate: 4.0% New York City sales tax rate: 4.875% Special sales tax rates: 0%

What food does not get taxed?

Categories of Non-Taxable Food Items in California CategoryExamples Produce Fresh fruits and vegetables Dairy Milk, cheese, yogurt Bread and cereals Loaves of bread, rice, oatmeal Unprepared foods Raw meat, flour, pantry essentials2 more rows

What state has the highest food tax?

Mississippi. Mississippi currently has the highest-taxed groceries in the U.S. The state taxes essential food items at the regular 7% tax rate. A bill was passed in January that would reduce the tax to 2.5% by 2036, decreasing by 0.2% annually.

Can you deduct sales tax on food?

(Exceptions are made for food, clothing and medical supplies actual sales tax on these items is deductible even if you paid less than the general tax rate.)

How to calculate tax on food order?

Multiply the price of your item or service by the tax rate to get the sales tax amount. If your tax rate is a percentage, divide that number by 100 to get tax rate as a decimal. Then use this number in the sales tax calculation.

What is the 80 80 rule?

Restaurateurs should keep in mind the 80/80 rule, which applies when more than 80% of your sales are food and more than 80% of the food you sell is taxable. If the 80/80 rule applies and you do not separately track sales of cold food products to go, you are responsible for tax on 100% of your sales.

What is NYS tax on restaurant food?

The State of New York imposes a sales tax on most goods and services, including selling prepared food and beverages in restaurants. As of 2024, the combined sales tax rate in New York City is 8.875%, encompassing state, city, and MCTD (Metropolitan Commuter Transportation District) taxes.

Sales Tax Treatment of Restaurant Meals Purchased with Certain 2025

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