Sales and other transaction taxes
New York State administers a sales tax along with numerous other transaction taxes. Collections of sales and other transaction taxes increased by nearly $1.3 billion to $20.5 billion in 2023.
| Calendar year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|---|---|
| User taxes and fees | $15,611 | $16,266 | $16,865 | $15,462 | $17,890 | $19,159 | $20,481 |
| Sales and use | $13,485 | $14,119 | $14,799 | $13,450 | $15,867 | $17,490 | $18,574 |
| Motor fuel | $514 | $525 | $519 | $445 | $477 | $194 | $473 |
| Cigarette and tobacco products | $1,183 | $1,128 | $1,051 | $1,018 | $976 | $881 | $832 |
| Vapor products | NA | NA | $2 | $38 | $33 | $29 | $25 |
| Adult-use cannabis | NA | NA | NA | NA | NA | NA | $25 |
| Medical cannabis | $1 | $3 | $6 | $8 | $12 | $12 | $9 |
| Opioid tax | NA | NA | NA | $42 | $27 | $29 | $24 |
| Alcoholic beverage tax | $260 | $261 | $263 | $268 | $277 | $279 | $276 |
| Highway and fuel use | $92 | $147 | $141 | $134 | $144 | $131 | $143 |
| Auto rental tax | $76 | $83 | $84 | $59 | $78 | $92 | $95 |
| Tax registration type | Active taxpayers |
|---|---|
| Sales tax Certificate of Authority | 570,214 |
| Cigarette tax Certificate of Registration (only)—retailer | 5,554 |
| Vapor tax Certificate of Registration (only)—retailer (began November 2019) | 442 |
| Cigarette or tobacco and vapor taxes Certificate of Registration (both)—retailer | 8,078 |
| Adult-use cannabis Certificate of Registration—distributor (began July 2022) | 137 |
| Adult-use cannabis Certificate of Registration—retailer (began January 2023) | 65 |
| Adult-use cannabis Certificate of Registration—both distributor and retailer | 5 |
| Highway use tax (HUT) and automotive fuel carrier (AFC) | 134,712 |
| International Fuel Tax Agreement (IFTA) | 7,194 |
| Petroleum business tax | 2,003 |
| Alcohol beverage tax | 3,258 |
| Tobacco distributors and wholesalers | 465 |
| Cigarette agents and wholesalers | 159 |
| Cigarette chain stores | 1,150 |
Sales tax is New York’s largest transaction tax
In 2023, 569,151 businesses collected $18.6 billion in state sales tax. This is a 6.2% increase in collections from 2022.
| Calendar year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|---|---|
| Sales and use tax collections (in millions of dollars) |
$13,485 | $14,119 | $14,799 | $13,450 | $15,867 | $17,490 | $18,574 |
| Number of sales tax vendors | 551,398 | 547,738 | 558,516 | 576,058 | 568,359 | 561,847 | 569,151 |
The 500 largest vendors reported more than 40% of total taxable sales in sales tax year 2023.
| Number of largest vendors | Percent of total taxable sales |
|---|---|
| 5 | 9% |
| 10 | 13% |
| 50 | 22% |
| 100 | 28% |
| 250 | 36% |
| 500 | 42% |
In 2022, most sales and use tax receipts were derived from retail trade and services industries.
| 2022 industry taxable sales* | Industry share of total taxable sales | Year-to-date change compared to 2021 |
|---|---|---|
| Retail trade | 43.7% | 3.4% |
| Services | 12.3% | 15.9% |
| Restaurants | 11.9% | 21.3% |
| Other** | 7.6% | 15.3% |
| Information | 6.3% | 7.8% |
| Wholesale trade | 5.9% | 11.5% |
| Manufacturing | 4.1% | 7.6% |
| Accommodation | 2.9% | 74.9% |
| Construction | 2.7% | 11.2% |
| Utilities | 2.7% | 16.1% |
| Total | 100.0% | 10.4% |
* Based on sales tax liability periods from March 2022 through February 2023. Liability data may not match collections data due to late payments, amended returns, adjustments, and so on.
** Includes unclassified vendors, agriculture, mining, transportation, education, finance, insurance, real estate, and government.
Consumer savings from sales tax exemptions
New York State offers tax exemptions on food, clothing, residential energy, Internet charges, and cable television, as well as a motor fuel tax cap. These exemptions save consumers more than $5.7 billion on staples and necessities every year.
| Consumer item | Description | Annual consumer savings |
|---|---|---|
| Food | Food, food products, beverages, dietary foods, and health supplements sold for human consumption are exempt from tax | $2.2 billion |
| Residential energy | Wood used for residential heating, fuel oil, propane, natural gas, electricity and steam; and gas, electric, and steam services used for residential purposes are exempt from tax | $930 million |
| Clothing | Items of clothing and footwear costing less than $110 are exempt from tax | $900 million |
| Internet charges | Internet access service is exempt from tax | $800 million |
| Cable television | Cable television service is exempt from tax | $600 million |
| Motor fuel tax cap | Any portion of the motor fuel taxable receipt that exceeds $2 per gallon is exempt from tax | $300 million |
