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Summary of 2025 sales and other tax type changes

Sales tax

Other tax types

Estate tax

Pari-mutuel wagering tax

Real estate transfer tax

Waste tire management fee

Amending and filing sales and use tax, adult-use cannabis products tax, and wireless communications surcharge returns (Article 28)

For returns filed or amended on or after December 1, 2024, any person required to collect tax under Tax Law Article 28 (Sales and Compensating Use Taxes) may, in certain situations, amend a previously filed return or file an original return after a notice of determination is issued.

For more information, see TSB-M-25(1)S, (1)M, Amending and Filing Sales and Use Tax, Adult‑Use Cannabis Products Tax, and Wireless Communications Surcharge Returns.

[Part LL of Chapter 59 of the Laws of 2025 and Part H of Chapter 59 of the Laws of 2024; Tax Law §§ 1136(d-1) and 1145(a)(8)]

Extension of the vending machine exemption for candy, fruit drinks, soft drinks, and bottled water (Article 28)

The exemption from sales and use tax for certain candy, fruit drinks, soft drinks, and bottled water sold from vending machines is extended to May 31, 2026.

For more information, see Tax Bulletin Food and Beverages Sold from Vending Machines (TB-ST-280).

[Part AA of Chapter 59 of the Laws of 2025; Tax Law §§ 1105(a), 1105(d)(i)(3), and 1115(a)(1)]

Imposition of tax on sales of short-term rental unit occupancy (Articles 28 and 29)

Effective March 1, 2025, New York State sales and use tax, and the New York City unit fee, are imposed on sales of short-term rental unit occupancy.

For more information, see Sales tax on short-term rental unit occupancy.

[Chapter 99 of the Laws of 2025; Tax Law §§ 1101(c), 1104(a), 1105(e)(1), 1131, 1132(m), 1133(g), 1134(a)(7), 1136(a)(4), 1138(a)(3)(B), 1142(16), 1145(a)(3)(i), 1210(a)(4)(v), 1817(a) and (b)]

Extension of taxable gifts includible in New York gross estate (Article 26)

The addback of taxable gifts for estates of decedents dying on or after January 16, 2019, is extended to deaths occurring on or before December 31, 2031.

For more information, see Estate tax.

[Part T of Chapter 59 of the Laws of 2025; Tax Law § 954(a)(3)]

Simplified computation for pari-mutuel wagering tax (Racing, Pari-mutuel Wagering and Breeding Law Articles 1, 9 and 10)

Effective September 1, 2025, the excise tax imposed on any authorized racing association, corporation, or regional off-track betting corporation (OTB) authorized to conduct pari-mutuel wagering is 0.7% of the total amount wagered through their operations.

Breakage or breaks are no longer permitted, unless required by a jurisdiction in another state or foreign country.

In addition, the nonrefundable tax credit and the certain credit for OTB corporations who simulcast from a facility they operate have been repealed.

For more information, see Pari-mutuel taxes.

[Part FF of Chapter 59 of the Laws of 2025; Racing, Pari-Mutuel Wagering and Breeding Law §§ 136 and 1011]

Exemption from additional tax (mansion tax) for certain conveyances of real property (Article 31)

On or after May 9, 2025, conveyances of real property for open space, parks, or historic preservation purposes to any not-for-profit tax-exempt corporation operated for conservation, environmental, parks, or historic preservation purposes are exempt from the additional tax (mansion tax).

For more information, see Real estate transfer tax.

[Part TT of Chapter 58 of the Laws of 2025; Tax Law §§ 1405, 1402-a]

Changes in waste tire management and recycling fee (Environmental Conservation Law Article 27; Tax Law Article 28)

The waste tire management and recycling fee has been extended through December 31, 2027.

Further, effective September 1, 2025:

  • the requirement for a tire service to collect, remit, and report the fee has been expanded to include mail-order, phone-order, and Internet retail sales of new tires delivered within New York State;
  • to recover administrative costs, a tire service that maintains any physical retail location in New York State may keep twenty-five cents ($0.25) per tire from any fees collected from all sales of new tires; and
  • a tire service that installs tires it did not sell must now collect the $2.50 fee on each new tire it installs unless the purchaser can show that the fee was previously paid to the seller.

 For more information, see Waste tire management and recycling fee.

[Part PP of Chapter 58 of the Laws of 2025; Environmental Conservation Law Article 27; Tax Law Article 28]

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