Are massage services by a New York State licensed massage therapist subject to New York City and New York State sales tax?

Plain-English summary

Carapan, Inc. provides New York City offices where massage therapists -- licensed by the State under Article 155 of Title 8 of the Education Law -- offer massages. It asked whether those massage services are subject to New York City and New York State sales tax.

The Department split the answer between the City and the State:

• Taxable for New York City. Tax Law 1212-A(a)(2) and NYC Administrative Code 11-2002(h) impose tax on "massage services," but exclude services by a physician, osteopath, dentist, nurse, physiotherapist, chiropractor, podiatrist, and others -- or "a person performing similar services licensed under Title VIII of the Education Law." The Department held that even though massage therapists are licensed under Title 8, their services are not medical in nature like those listed professions, so massage is not a "similar service" and is subject to the New York City sales tax.
• Not taxable for New York State. New York State sales tax under Tax Law 1105(c) applies only to a specific list of enumerated services, and massage is not on that list. So the receipts are not subject to New York State sales or compensating use tax.

What this means for you

Massage businesses and spas in New York City

Massage services are subject to New York City sales tax, even when performed by a State-licensed massage therapist. Being licensed under Title 8 does not put massage into the medical-services exclusion, because the exclusion is read to cover services that are medical in nature.

Outside New York City

The State sales tax does not reach massage services, because they aren't one of the enumerated taxable services in section 1105(c). Watch for any other local taxes modeled on the NYC provision.

The "similar services" exclusion is about the nature of the service

The takeaway is that a Title 8 license alone doesn't qualify a service as "similar" to a physician's or physiotherapist's. The service itself must be medical in character.

Common questions

Q: The therapist is state-licensed -- doesn't that make the service exempt like a physiotherapist's?
A: No. The Department held massage is not medical in nature, so it isn't a "similar service" under the NYC exclusion, and it remains subject to New York City sales tax.

Q: Do I charge New York State sales tax on a massage?
A: No. Massage is not an enumerated service under Tax Law section 1105(c), so it isn't subject to State sales tax.

Q: So a massage in NYC is taxed, but the same massage elsewhere in the state isn't?
A: Under this opinion, the New York City sales tax applies to massage services; the State sales tax does not.

Q: Can I rely on this opinion?
A: It binds the Department only as to the petitioner and the facts described. Treat it as guidance and confirm your own facts.

Citations and references

• Tax Law section 1212-A(a)(2) (New York City tax on massage services)
• New York City Administrative Code section 11-2002(h) (NYC tax on massage services; exclusion for similar licensed services)
• Tax Law section 1105(c) (state sales tax on enumerated services)
• Education Law Title 8, Article 155 (licensing of the profession of massage)

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales_ao_1993.htm
• Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/sales/a93_40s.pdf

Original ruling text

New York State Department of Taxation and Finance

Taxpayer Services Division
Technical Services Bureau

TSB-A-93 (40)S
Sales Tax
June 21, 1993

STATE OF NEW YORK
COMMISSIONER OF TAXATION AND FINANCE
ADVISORY OPINION

PETITION NO. S930302C

On March 2, 1993 a Petition for Advisory Opinion was received from Carapan, Inc., 5 West
16th St., New York, NY 10011.
The issue raised by Petitioner, Carapan, Inc., is whether massage services rendered by a
massage therapist licensed under Title 8 of the New York State Education Law are subject to New
York State and Local Sales and Use Tax and the New York City Sales and Use Tax.
Massage therapists, licensed by the New York State Board for Massage under Article 155
of Title 8 of the Education Law, utilize the offices of the Petitioner for the purpose of offering
massages.
Section 1212-A(a)(2) of the Tax Law and Section 11-2002(h) of the New York City
Administrative Code impose a tax on the receipts from every sale of "...massage services...; but
excluding services rendered by a physician, osteopath, dentist, nurse, physiotherapist, chiropractor,
podiatrist, optometrist, ophthalmic dispenser or a person performing similar services licensed under
Title VIII of the Education Law as amended .... " (Emphasis added)
Article 155 of Title 8 of the New York State Education Law states, in part:
MASSAGE
§ 7800. Introduction
This article applies to the profession of massage. The general provisions for
all professions continued in article one hundred thirty of this title apply to this article.
§ 7801. Definition of practice of massage
The practice of the profession of massage is defined as engaging in applying
a scientific system of activity to the muscular structure of the human body by means
of stroking, kneading, tapping and vibrating with the hands or vibrators for the
purpose of improving muscle tone and circulation.
§ 7802. Practice of massage and use of title "masseur" or "masseuse" or the
term "massage"
Only a person licensed or authorized pursuant to section seven thousand eight
hundred five of this article shall practice massage and only a person licensed under
section seventy-eight hundred four of this article shall use the title "masseur" or
"masseuse". No person, firm, partnership or corporation shall describe its services
in any manner under the title "massage" unless such services as defined in section

-2­
TSB-A-93 (40)S
Sales Tax
June 21, 1993
seventy-eight hundred one of this article are performed by a person licensed or
authorized pursuant to section seventy-eight hundred five to practice massage under
this article.
*

*

*

§ 7804. Requirements for a professional license
To qualify for a license as a licensed masseur or licensed masseuse, an
applicant shall fulfill the following requirements:
(2) Education: have received an education, including high school graduation
and graduation from a school or institute of massage with a program registered by the
department, or its substantial equivalent in both subject matter and extent of training,
provided that the program in such school or institute shall consist of classroom
instruction of a total of not less than five hundred hours in subjects satisfactory to the
department;
(3) Examination: pass an examination satisfactory to the board and in
accordance with the commissioner's regulations;
§ 7805. Exempt persons
Nothing contained in this article shall be construed to prohibit:

1. The practice of massage by any person who is authorized to practice
   medicine, nursing, osteopathy, physiotherapy, chiropractic, or podiatry in accordance
   with the provisions of this title.
   Even though persons engaged in the profession of massage are licensed under Title 8 of the
   Education Law, the services that they provide are not medical in nature as are the services provided
   by the categories of professionals enumerated in Section 1212-A of the Tax Law and Section 11­
   2002(h) of the New York City Administrative Code. Therefore they are not providing "similar
   services" as intended by the aforesaid sections and accordingly their services are subject to the New
   York City sales tax.

-3­
TSB-A-93 (40)S
Sales Tax
June 21, 1993
It is noted that Section 1105(c) of the Tax Law imposes New York State sales and
compensating use tax on the receipts from certain enumerated services. Since massage services are
not included within the services enumerated under Section 1105(c) of the Tax Law, the receipts from
massage services are not subject to the New York State sales or compensating use tax.

DATED: June 21, 1993

/s/
PAUL B. COBURN
Deputy Director
Taxpayer Services Division

NOTE: The opinions expressed in Advisory Opinions
are limited to the facts set forth therein.