New York Contractor Sales Tax 2026
New York sales tax for contractors 2026. Labor taxable? Materials? Real rules from state revenue department.
New York sales tax rate for contractors
- Combined rate: 4% + local (~8.5% combined avg)
- Construction labor taxable: PARTIALLY - depends on contract type
- Tax authority: New York State Department of Taxation and Finance
How New York treats contractor labor
CAPITAL IMPROVEMENT to real property exempt (Form ST-124). REPAIR, MAINTENANCE, INSTALLATION labor on TPP taxable.
New York-specific rules
NY capital improvement vs. repair distinction critical. Form ST-124 (Certificate of Capital Improvement) must be obtained from customer to support exempt treatment. No statewide GC license; NYC has strict HIC requirements.
New York mechanics lien rights
Beyond sales tax, New York contractor billing must respect the mechanics lien deadline of 8 months from last work (residential); 4 months (commercial). Preliminary notice: Not required separately.
New York contractor licensing
No statewide GC license; NYC, Suffolk, Nassau, Westchester have local licensing. Board: https://www.dos.ny.gov.
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