Merchant Services in New York
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What a New York business needs to know before taking card payments: the state sales tax rate, what the law says about card surcharges, and what it costs to form an LLC. Every figure below comes from an official New York page or statute and links to it. Checked 2026-10-15.
New York at a glance
| Item | What we found | Source |
|---|---|---|
| State sales tax base rate | 4% | Official source |
| Card surcharge rule | Allowed with limits | Official source |
| LLC formation fee | $200.00 | Official source |
| LLC recurring fee | $9.00 every two years | Official source |
| Wage income tax | Up to 10.9% | Official source |
Card surcharges in New York
What the statute says
New York General Business Law section 518: a seller that imposes a surcharge must clearly and conspicuously post the total price for using a credit card, and the surcharge may not exceed the amount the card company charges the business. A violation carries a civil penalty of up to $500.
New York caps a surcharge at your actual cost of processing the card payment. On a $100 sale paid with a card that costs you $3.20, the most you can add under the state limit is $3.20.
Worked example: a $100 card sale
Using a published online card rate of 2.9% + $0.30 (Stripe, checked 2026-10-15), a $100 sale costs you $3.20 to process.
| Your card cost | $3.20 |
|---|---|
| Visa's limit for credit cards (lower of your cost or 3%) | $3.00 |
| New York's limit | $3.20 |
| Most you could add on this sale | $3.00 |
| Share of your card cost that covers | 94% |
Visa's own rule: Visa's Q&A says U.S. merchants may surcharge credit cards (not debit or prepaid) up to the merchant discount rate for the card or 3%, whichever is lower, must disclose it as a merchant fee at the point of entry, point of sale or checkout and on the receipt, and must notify their acquirer at least 30 days before starting.
This is arithmetic from published rules, not legal advice. Visa's rules apply to credit cards only (not debit or prepaid), require disclosure, and require notice to your processor before you start. Ask your processor before you surcharge.
See the surcharge laws for all states ·Try the surcharge calculator
Sales tax in New York
The state base rate is 4%, which we read on the official page (the state rate (currently 4%)). That is the 2 lowest of the 46 states whose base rate we have verified. On a $100 purchase the state tax is $4.00; on a $1,250 purchase it is $50.00.
Local taxes may apply on top of the state rate, and the exact rate depends on the address.
Forming an LLC in New York
The state filing fee for an LLC is $200.00, which is the 43 lowest of the 48 states whose formation fee we have verified.
New York also requires a publication step after formation; its cost varies and is not included here.
After that, New York charges $9.00 every two years (biennial statement), so the state fees in the first year are about $209.00.
New York filing office ·How to start an LLC
Paying employees in New York
New York taxes wages with graduated rates, topping out at 10.9%.
As a rough estimate, a single employee paid $2,000 every two weeks would have about $85.04 of New York income tax withheld per paycheck. This is an estimate and does not include credits or local taxes.
Estimate: state rates per Tax Foundation 2026; check with New York.
What this means for a New York business
A surcharge is possible in New York but it must stay within the limit above and be disclosed the way the law requires.
Frequently asked questions
Can I add a credit card surcharge in New York?
Yes, within limits. New York General Business Law section 518: a seller that imposes a surcharge must clearly and conspicuously post the total price for using a credit card, and the surcharge may not exceed the amount the card company charges the business. A violation carries a civil penalty of up to $500.
What is the sales tax in New York?
The state base rate is 4%. Local taxes may apply.
How much does it cost to form an LLC in New York?
The state filing fee is $200.00.
Other state pages
We publish a state page only when the sales tax rate, the LLC formation fee and the surcharge rule are all verified from official sources.