New York State sales and use tax is administered by the Department of Taxation and Finance under Articles 28 and 29 of the Tax Law. A business that makes taxable sales in New York registers for a Certificate of Authority, collects tax at the combined state and local rate for the delivery location, and files a return on a schedule the Department assigns.
Two features of the New York system surprise people who have filed elsewhere: the sales tax year runs March through February, not January through December, and the filing frequency is set by the Department rather than chosen by the business.
The numbers at a glance
New York's sales tax year runs from March 1 through the end of February. The quarters are March–May, June–August, September–November and December–February, each due 20 days after the quarter ends. A calendar-quarter assumption will make you late.
How the system fits together
1. Get a Certificate of Authority
Apply at least 20 days before you begin making taxable sales. Operating without one carries a penalty of up to $500 for the first day plus up to $200 a day after, to a $10,000 maximum.
2. Collect at the right rate
Rates are destination-based: the point of delivery determines the rate. Combined rates run from 7% to 8⅞% depending on jurisdiction.
3. File on the Department's schedule
Annual, quarterly or part-quarterly (monthly), assigned by the Department based on your receipts. Most new vendors start quarterly on Form ST-100.
4. Web File and claim the credit
Most vendors must file and pay electronically. Quarterly and annual filers who file on time and pay in full may keep 5% of the tax reported, capped at $200.
Things people most often get wrong
- Filing frequency is assigned, not chosen. Crossing $300,000 in taxable receipts, purchases subject to tax, rents and amusement charges in a quarter moves a vendor to monthly filing from the first month of the next quarter.
- Part-quarterly filers do not get the vendor collection credit. Neither do PrompTax enrollees, amended returns or past-due returns.
- A return is required even with no sales. The Department is explicit about it, and the minimum penalty for a late return with no tax due is $50.
- Being registered means being in business for sales tax purposes. Publication 750 puts it directly: once you hold a Certificate of Authority you are considered in business even if you never make a sale.
- Two different “Oneida” jurisdictions exist. Oneida County is 8¾%; the city of Oneida sits in Madison County at 8%.
Common questions
What is the sales tax rate in New York?
When does New York's sales tax year start?
Do I need to file a New York sales tax return with no sales?
How soon do I need a Certificate of Authority?
What is the vendor collection credit?
Sources
- New York State Department of Taxation and Finance — Sales and use tax — https://www.tax.ny.gov/bus/st/stidx.htm
- TB-ST-275, Filing Requirements for Sales and Use Tax Returns — https://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/filing_requirements_for_sales_and_use_tax_returns.htm
- TB-ST-825, Sales Tax Rates, Additional Sales Taxes, and Fees — https://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/sales_tax_rates_additional_sales_taxes_and_fees.htm
- Publication 718, NYS Sales and Use Tax Rates by Jurisdiction — https://www.tax.ny.gov/pdf/publications/sales/pub718.pdf