Sales and use tax on my income tax return
General sales and use tax information
- Sales and use tax generally applies to products and services that you purchase within or outside New York that are delivered or used in the state and on which the seller does not collect sales tax.
- Individuals, estates, or trusts may report sales and use tax owed on personal income tax or fiduciary returns. (Individuals include New York State residents, non-residents and part-year residents.)
- We may charge penalty and interest for failure to pay sales and use tax.
You may owe sales and use tax under certain scenarios
- Scenario 1
You buy property delivered to you in New York State without paying sales tax to the seller. This can happen when you buy something through the Internet, by catalog, from television shopping channels, or on an Indian reservation.
- Scenario 2
You buy a service (such as an information service, like data or a report) outside New York State that you bring into the State for use.
- Scenario 3
You buy a service performed on property outside New York State and bring that property into the state for use. For example, you owe use tax if you live in New York City, drive your car to New Jersey for service, and then drive back to New York.
- Scenario 4
You may owe an additional local sales and use tax if you are a resident of a county or city when you make your purchase and you:
- buy property or a service in a New York State county or city that has a lower tax rate and bring it to your county or city,
- bring property into your county or city after having a taxable service performed on it in another New York State county or city with a lower tax rate.
Computing sales and use tax
See the instructions below to learn how to report sales and use tax on a personal income tax return.
- IT-201-I, Resident Income Tax Return Instructions
- IT-203-I, Nonresident and Part-Year Resident Income Tax Return Instructions
- IT-205-I, Fiduciary Income Tax Return Instructions
For additional information, see:
- Tax Bulletin Use Tax for Individuals (including Estates and Trusts) (TB-ST-913)
- Tax Bulletin Quick Reference Guide for Taxable and Exempt Property and Services (TB-ST-740)
- Tax Bulletin Reciprocal Credit for Sales or Use Taxes Paid to Other Taxing Jurisdictions (TB-ST-765)