Penalty and Interest Discount (PAID) program

What is PAID

The New York State legislature recently passed legislation authorizing the Penalty and Interest Discount (PAID) program. This program gives sales tax vendors the chance to save 50% of the interest and 100% of the penalty they owe on certain unpaid sales tax bills, if they pay the total reduced amount owed on all PAID-eligible bills by December 31, 2026.

Benefits

If you're an eligible sales tax vendor, PAID can help you:

significantly reduce tax debts,
avoid liens and other enforcement actions, and
proactively meet the requirements of the upcoming sales tax re-registration program, which begins in mid-2027.

Who is eligible

You may be eligible for PAID if your business has an active Certificate of Authority and unpaid sales tax bills (excluding those associated with fraud) that are subject to collection action. Eligible bills are those that no longer have formal appeal rights.

If you are eligible, you do not need to take any action to enroll.

In mid-September, the Tax Department will identify and notify all eligible taxpayers.

Note: PAID-eligible bills include only bills that are eligible as of September 1, 2026. Balances—not bills—due with sales tax returns you filed for periods ending August 31, 2026 and November 30, 2026 are not eligible for the PAID program.

How it works

If you're eligible:

You'll receive a letter indicating you have bills that qualify for the program. This letter will list each PAID-eligible bill and the amount you'll save on each if you pay the total reduced PAID amount for every bill.
You must pay electronically the amount listed for all bills by December 31, 2026.

If you want to make smaller payments toward your total PAID balance:

you do not need a payment plan, and
you decide the amounts and frequency of your payments as long as you pay the total of all your PAID eligible bills by December 31, 2026.

If you choose not to take advantage of the program:

you must pay the total undiscounted sales tax balance you owe,
your formerly PAID-eligible bills are subject to collection action beginning January 1, 2027, and
your unpaid tax debts will continue to accrue penalty and interest at the full statutory rate.

What to do next

To take advantage of the program, pay the total of all the PAID-eligible bills shown on your PAID letter by December 31, 2026, through:

your Online Services account, or
Quick Pay, using the assessment ID number (begins with L) to pay. This does not require an account.

Do not pay by mail or any other method. If you cannot pay electronically, call us at 518-457-2563.

Payments may take up to 14 days to post to your account. Check with your bank to verify your payments were successful. If your bank dishonors any of your payments, you may end up underpaying the total of your PAID-eligible bills by the December 31, 2026 deadline, which will make you ineligible for PAID.

Note: Under PAID program law, we cannot refund any overpayments of PAID balances.

Payment options

To pay using Online Services

Log in to (or create) your Online Services account.
Select ≡ Services menu in the upper-left corner of your Account Summary homepage.
Select Payments, bills and notices, then choose Make a payment from the expanded menu. (During the PAID program, any taxpayer with PAID-eligible bills will see a PAID-specific payment screen when logging in. You will have a link to go to another screen if you need to pay a bill that is not part of the PAID program.)
Select the pay checkbox for PAID Program in the Payment type column.
Verify the document ID on your screen matches the bill (assessment) ID (beginning with the letter L) on your letter.
Enter an amount to pay in the Payment Amount field, then select Continue & Pay.
Select your payment method: bank account (free) or credit card (fee).
Write down your confirmation number for your records.

To pay using Quick Pay

You will need to:

verify your business information,
select Assessment for “I want to pay my,” to ensure the payment is counted toward PAID, and
enter each PAID assessment ID number as listed on your notice.

See Pay a bill or notice to view a demo and the full list of information you'll need.

Pay with Quick Pay

If you cannot pay online, call us at 518-457-2563 to pay over the phone.

Frequently asked questions

I cannot pay using an Online Services account. How else can I make payments?

If you are having an issue with your Online Service account, see Technical support.

You can still pay online without an account using our Quick Pay application.

If you cannot pay online, call us at 518-457-2563 to pay over the phone. (Please have your PAID notice available when calling.)

You must pay electronically using your assessment ID number (begins with an L) for the payment to be applied correctly. Do not pay by mail or any other method.

I cannot pay my PAID program balance in full by the deadline. Can I set up an installment payment agreement?

To participate in PAID, you must pay the total of all PAID-eligible bills by December 31, 2026. However, you may request an installment payment agreement (IPA) to pay your undiscounted tax balance.

I believe I have eligible bills, but I never received a letter. What do I do?

Only businesses are eligible for penalty and interest relief under the PAID program. If you are a responsible person for a business and have a bill, see Do bills for responsible persons qualify for PAID below.

Note: Balances due for sales tax returns you filed for periods ending August 31, 2026 and November 30, 2026 are not eligible for PAID.

Please call us at 518-457-2563 to discuss your account and eligibility. Have your business ID number available when calling.

Do bills for responsible persons qualify for PAID?

Yes. When you pay all PAID-eligible sales tax bills under your business ID, any bills for responsible persons associated with your business ID are automatically considered paid in full and closed.

You must pay using the assessment ID number (begins with an L) associated with the original sales tax liability issued under the business ID number (EIN), as it appears in your PAID letter. If you pay your responsible person bill instead, you will not receive relief under PAID.

I have a tax warrant for these bills. What will happen with the warrant?

If you pay all the bills listed on the warrant in full, the warrant is automatically satisfied. See Tax warrants for more information.

What if I have an open installment payment agreement (IPA) for some or all my PAID-eligible bills?

If your IPA includes both PAID-eligible and ineligible bills, and you pay all your PAID-eligible bills in full by December 31, 2026, your monthly payment amount will remain the same, but you will have fewer months left of your IPA.

Will my case remain in collections for the duration of the PAID program?

We will pause any collection action on your PAID-eligible sales tax bills for the duration of the program. All other bills will remain eligible for collection action when applicable.

I mistakenly overpaid my PAID balance. Will I receive a refund?

No. Overpayments of PAID balances are not refunded under the law.

Please call our PAID program phone number 518-457-2563 with any other PAID-related questions or concerns.

Updated: September 15, 2026