Month-end close: sales tax in New York

New York's sales tax quarters run March to May, not January to March, so the close falls in May, August, November and February.

This is part of the sales tax checklist. New York sales and use tax is filed with the Tax Department. A business must register at least 20 days before it starts, and may make taxable sales only once it has its Certificate of Authority [11]. Selling without one costs up to $500 for the first day plus up to $200 for each day after, to a $10,000 maximum, and not displaying it costs $50 [9].

Rate. 4% state, plus local rates by jurisdiction. The rate follows the delivery address.

Filing. The Tax Department sets the basis from the business's taxable receipts, purchases subject to use tax, rents and amusement charges. Use the basis on the client's account.

Due. A quarterly return is due 20 days after the quarter ends, and an annual return by March 20. The 2026 quarterly returns fall due on March 20, June 22, September 21 and December 21.

The trap. A return is due even with no sales, with "none" in boxes 12, 13 and 14. The 5% vendor collection credit, up to $200, applies only to a return filed on time and paid in full.

The month-end steps

1. Confirm what's taxable. Check the client's sales against the Tax Department's guidance for specific industries, which covers contractors and repair persons, restaurants and others [1]. Done when each kind of sale the client makes has been checked against its guidance.
2. Sales for resale. A customer buying for resale gives the seller Form ST-120, Resale Certificate, and the sale is reported as nontaxable [2]. The customer must give the completed certificate within 90 days of the sale, or both the customer and the seller can be held liable for the tax. The seller must accept it in good faith, attach it to the record of the sale or otherwise link it to the sale, and keep it for at least three years from the due date of the return that reported the last sale made with it. Most sellers need a valid Certificate of Authority to accept one [3]. Done when every sale for resale in the period has a certificate on file, received within 90 days.
3. The rate. The state rate is 4%, and local rates are added on top by jurisdiction, as listed in the Tax Department's Publication 718, effective March 1, 2025 [4]. Report each sale for the jurisdiction where it was made and delivered, so the rate follows the delivery address [2]. Look up an address's jurisdiction and rate with the Tax Department's Jurisdiction/Rate Lookup by Address [5]. Done when each taxable sale carries the rate for its delivery address.
4. The filing basis. The Tax Department sets it from the business's combined taxable receipts, purchases subject to use tax, rents and amusement charges. Use the basis on the client's account [6]:

A quarterly filer with $3,000 or less of tax over its last four quarters may be moved to annual filing, and a monthly filer stays monthly until it's under $300,000 in each of four quarters in a row [6].

5. The return, the ST-100. New York's sales tax quarters run March to May, June to August, September to November and December to February [6]. So a New York client's sales tax close falls in May, August, November and February, not at its payroll quarter-ends. On the quarterly return, the ST-100 [2]:
   1. Box 1, gross sales: all taxable, nontaxable and exempt sales and services, without the sales tax.
   2. Box 1a, nontaxable sales: including sales for resale made on an ST-120.
   3. Step 3, by jurisdiction: Column C is taxable sales delivered there, Column D is purchases subject to use tax, Column E is the printed rate, and Column F is C plus D times E.
   4. Step 7, the vendor collection credit: 5% of the tax and fees reported, up to $200. It applies only when the return is filed on time and paid in full, never on a late or amended return, and it can't be carried forward.

Done when Box 1 ties to the quarter's sales in the books, Box 1a to the nontaxable and resale sales, and Column F's total to the sales tax payable account.

6. The due date. A quarterly return is due 20 days after the quarter ends, and an annual return by March 20 [6]. A due date on a Saturday, Sunday or legal holiday moves to the next business day [7], which is why the 2026 quarterly returns fall due on March 20, June 22, September 21 and December 21 [7]. File a return even with no sales; a no-tax-due return writes "none" in boxes 12, 13 and 14 [8] [2]. A return filed late or without payment costs 10% of the tax for the first month plus 1% for each month after, up to 30%, and a late return with no tax due costs $50 [9] [2]. Interest on late sales tax is 14.5% a year for October 1 to December 31, 2026 [10]. Done when the ST-100 is filed and paid by its due date, so the vendor collection credit applies, and the sales tax payable account is at zero once it's paid.