Vendor collection credit
New York lets qualifying vendors keep a slice of what they collect: 5% of the taxes and fees reported on the return, capped at $200 per quarterly or annual reporting period.
- Who qualifies
- Quarterly (ST-100) and annual (ST-101) filers who file on time and pay what they owe in full.
- Who does not
- Part-quarterly / monthly filers on ST-809 and ST-810; vendors enrolled in PrompTax for sales tax; amended returns; past-due returns.
Penalties
Tax Bulletin TB-ST-805 sets out the structure, under Tax Law §1145(a)(1)(i).
| Situation | Penalty |
|---|---|
| Return filed late by 60 days or less | 10% of the tax due for the first month, plus 1% for each additional month or part month, not to exceed 30% of the tax due — but not less than $50 |
| Failure to file, or return filed more than 60 days late | The greater of: the 10%+1% calculation capped at 30%; or $100 or 100% of the tax required to be shown, whichever is less; or $50 |
| Late return with no tax due | $50 |
| Return filed on time but tax not remitted | 10% of the tax due for the first month, plus 1% for each additional month or part month, not to exceed 30% |
| Fraudulent failure to pay | Twice the amount of tax not paid, plus interest at the greater of 14½% or the rate set by the Tax Commissioner |
| Selling without a Certificate of Authority | Up to $500 for the first day plus up to $200 per day after, maximum $10,000 |
| Failure to e-file or e-pay when mandated | $50 for each document and $50 for each failure to e-pay |
Interest
The Department sets interest rates quarterly and compounds them daily. The current rates are published on the Department's interest rate page, which posts a table for each quarter and each tax type.
| Quarter | Late payment / assessment | Refunds |
|---|---|---|
| July 1 – September 30, 2026 | 14.5% | 6% |
| April 1 – June 30, 2026 | 14.5% | 5% |
These figures change every quarter. Treat any interest rate published on a third-party site — including this one — as a snapshot, and read the current quarter from the Department's interest rate page before calculating anything.
Note also that the 14½% figure appears in two different places in the Department's material: as the current quarter's late-payment rate, and separately as a floor in the fraud provision. They are not the same rule.
Amending a return
Effective December 1, 2024, Part LL of Chapter 59 of the Laws of 2025 allows a taxpayer to amend a previously filed return, or to file an original return, in certain situations after a notice of determination has been issued — for sales and use tax, the adult-use cannabis products tax and the wireless communications surcharge. The Department implemented this in TSB-M-25(1)S, (1)M, which supersedes the earlier TSB-M-24(2)S, (1)M.
Where the Department publishes relief
The Department offers a penalty and interest calculator and describes reasonable-cause relief in its guidance. Relief is fact-specific and is decided by the Department, not by any third party.
Common questions
What is the penalty for filing a New York sales tax return late?
What is the minimum New York sales tax penalty if no tax is due?
What interest does New York charge on late sales tax?
How much is the New York vendor collection credit?
Sources
- TB-ST-805, Sales and Use Tax Penalties — https://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/sales_and_use_tax_penalties.htm
- TB-ST-925, Vendor Collection Credit — https://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/vendor_collection_credit.htm
- Interest rates, July 1 – September 30, 2026 — https://www.tax.ny.gov/pay/interest/2026/p3.htm
- Interest rates index — https://www.tax.ny.gov/pay/interest/
- Summary of 2025 sales and other tax type changes — https://www.tax.ny.gov/legal/2025/sales-misc-changes.htm