Are massage services provided by a New York-licensed massage therapist subject to New York City's local sales tax, and are they also subject to New York State sales tax?

Subject

DBA Bodycare, 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.

What this means for you

A licensed massage therapist, certified since 1983 under Article 155 of Title 8 of the Education Law (completing a registered training program, passing a state board exam, and maintaining continuing education), runs a Brooklyn practice seeing about 500 sessions a year. Some clients come for stress-reduction, others are referred by physicians, chiropractors, or other medical personnel, and his services are routinely reimbursed by medical insurance, No-Fault Insurance, and Workers' Compensation.

New York City imposes its own local sales tax specifically on massage services, but exempts services rendered by a list of licensed medical professionals -- physicians, osteopaths, dentists, nurses, physiotherapists, chiropractors, podiatrists, optometrists, ophthalmic dispensers, or anyone else providing "similar services" licensed under Title 8 of the Education Law. Even though a massage therapist IS licensed under that same Title 8, the Department found his services aren't medically "similar" in nature to those specific professions' work, so he doesn't qualify for that exclusion -- his massage services are subject to the New York City local sales tax. Separately, though, the State-level sales tax under Tax Law § 1105(c) only reaches a specific enumerated list of services, and massage isn't on that list at all -- so regardless of the New York City outcome, there's no New York State (or general local, outside NYC's specific massage tax) sales or use tax on massage services.

Q&A

Q: I'm a licensed massage therapist practicing in New York City -- do I need to collect sales tax on my sessions?
A: Per this opinion, yes -- New York City has its own local sales tax specifically covering massage services, and being licensed under Title 8 of the Education Law (the same licensing scheme covering physicians, nurses, chiropractors, etc.) doesn't by itself exempt massage from it, since the Department found massage isn't medically "similar" to those exempted professions.

Q: Does it matter that my clients are referred by doctors or reimbursed by medical insurance/Workers' Comp?
A: Not per this opinion -- those facts were part of the taxpayer's description, but the Department's holding turned on whether massage itself is "similar" in nature to the enumerated medical professions, not on how individual sessions are billed or referred.

Q: I practice massage therapy outside New York City -- do I owe any New York sales tax?
A: Per this opinion, no New York State sales tax applies to massage services anywhere in the state, since massage isn't one of the services enumerated under Tax Law § 1105(c). The taxable-in-NYC result here is specific to New York City's own separate local massage-services tax provision.

Citations

• Tax Law § 1212-A(a)(2) -- imposes a New York City local sales tax on massage services, excluding services by certain licensed medical professionals or those performing "similar services."
• New York City Administrative Code § 11-2002(h) -- the parallel New York City Administrative Code provision imposing the same local massage-services tax.
• Tax Law § 1105(c) -- imposes New York State sales tax only on specifically enumerated services; massage services aren't among them.
• New York Education Law Article 155 (§§ 7800-7805) -- governs licensing of the massage profession under Title 8.
• Carapan, Inc., Adv Op Comm T&F, June 21, 1993, TSB-A-93(40)S -- prior opinion establishing massage isn't a "similar" medical service for the NYC exclusion, and isn't a state-taxable enumerated service either.

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales_ao_1994.htm
• Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/sales/a94_44s.pdf

Original ruling text

New York State Department of Taxation and Finance

Taxpayer Services Division
Technical Services Bureau

TSB-A-94 (44)S
Sales Tax
September 19, 1994

STATE OF NEW YORK
COMMISSIONER OF TAXATION AND FINANCE
ADVISORY OPINION

PETITION NO. S940809B

On August 9, 1994 a Petition for Advisory Opinion was received from Walter R. Zernis
L.M.T., DBA Bodycare, 439 54th Street, Brooklyn, New York 11220.
The issue raised by Petitioner, Walter R. Zernis L.M.T. DBA Bodycare, 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.
Petitioner has been a licensed massage therapist pursuant to Article 155 of Title 8 of the
Education Law since March 1983. To earn certification, Petitioner enrolled in a certified massage
therapy program with internship and passed a comprehensive technical written examination
administered by The New York State Board of Massage of the New York State Education
Department. Petitioner also is a member of two professional massage therapy organizations; the
American Massage Therapy Association and the New York State Society of Medical Massage
Therapists. Petitioner must complete 20 hours of continuing education courses biannually.
Petitioner maintains an office at 439 54th Street, Brooklyn, New York 11220, where he
conducts approximately 500 sessions per year. Some of Petitioner's patients schedule appointments
for stress reduction therapy, while others are referred by their physicians, chiropractors or other
licensed medical personnel. Petitioner's services are routinely reimbursed under medical insurance
plans and Petitioner provides services under the New York State No-Fault Insurance and Workers
Compensation programs.
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.

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TSB-A-94 (44)S
Sales Tax
September 19, 1994
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
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 Petitioner is engaged in the profession of massage and is licensed under Title
      8 of the Education Law, the services that he provides 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 Petitioner is not

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Sales Tax
September 19, 1994
providing "similar services" as intended by the aforesaid sections and accordingly his services are
subject to the New York City sales tax. Carapan, Inc., Adv Op Comm T&F, June 21, 1993, TSB-A­
93(40)S.
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. Carapan, Inc.,
Supra.

DATED: September 19, 1994

s/PAUL B. COBURN
Deputy Director
Taxpayer Services Division

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