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New York State Sales Tax Guide
New York sales & use tax

Penalties, interest and the vendor collection credit

New York pays qualifying vendors 5% of what they report, up to $200 — and charges a penalty with a $50 floor when a return is late, even with no tax due.

Reviewed against published state sources on August 21, 2026. Rules and figures change — always confirm with the agency before acting.

Ready to file? Returns are filed with the New York State Department of Taxation and Finance, never through this site.Log in to Online Services →Opens ols.tax.ny.gov, the Department's Tax Online Services Portal — the shortest route to Sales Tax Web File, which is otherwise several clicks deep. Sign in with your NY.gov ID; Web File itself cannot be bookmarked and is only reachable once you are logged in. New vendors can create a Tax Online Services account from the same page.

Vendor collection credit

New York lets qualifying vendors keep a slice of what they collect: 5% of the taxes and fees reported on the return, capped at $200 per quarterly or annual reporting period.

Who qualifies
Quarterly (ST-100) and annual (ST-101) filers who file on time and pay what they owe in full.
Who does not
Part-quarterly / monthly filers on ST-809 and ST-810; vendors enrolled in PrompTax for sales tax; amended returns; past-due returns.

Penalties

Tax Bulletin TB-ST-805 sets out the structure, under Tax Law §1145(a)(1)(i).

SituationPenalty
Return filed late by 60 days or less10% of the tax due for the first month, plus 1% for each additional month or part month, not to exceed 30% of the tax due — but not less than $50
Failure to file, or return filed more than 60 days lateThe greater of: the 10%+1% calculation capped at 30%; or $100 or 100% of the tax required to be shown, whichever is less; or $50
Late return with no tax due$50
Return filed on time but tax not remitted10% of the tax due for the first month, plus 1% for each additional month or part month, not to exceed 30%
Fraudulent failure to payTwice the amount of tax not paid, plus interest at the greater of 14½% or the rate set by the Tax Commissioner
Selling without a Certificate of AuthorityUp to $500 for the first day plus up to $200 per day after, maximum $10,000
Failure to e-file or e-pay when mandated$50 for each document and $50 for each failure to e-pay

Interest

The Department sets interest rates quarterly and compounds them daily. The current rates are published on the Department's interest rate page, which posts a table for each quarter and each tax type.

QuarterLate payment / assessmentRefunds
July 1 – September 30, 202614.5%6%
April 1 – June 30, 202614.5%5%
Interest is a moving number

These figures change every quarter. Treat any interest rate published on a third-party site — including this one — as a snapshot, and read the current quarter from the Department's interest rate page before calculating anything.

Note also that the 14½% figure appears in two different places in the Department's material: as the current quarter's late-payment rate, and separately as a floor in the fraud provision. They are not the same rule.

Amending a return

Effective December 1, 2024, Part LL of Chapter 59 of the Laws of 2025 allows a taxpayer to amend a previously filed return, or to file an original return, in certain situations after a notice of determination has been issued — for sales and use tax, the adult-use cannabis products tax and the wireless communications surcharge. The Department implemented this in TSB-M-25(1)S, (1)M, which supersedes the earlier TSB-M-24(2)S, (1)M.

Where the Department publishes relief

The Department offers a penalty and interest calculator and describes reasonable-cause relief in its guidance. Relief is fact-specific and is decided by the Department, not by any third party.

Common questions

What is the penalty for filing a New York sales tax return late?
For a return filed 60 days late or less, 10% of the tax due for the first month plus 1% for each additional month or part of a month, capped at 30% of the tax due, but not less than $50. Filing more than 60 days late uses a greater-of calculation set out in Tax Bulletin TB-ST-805.
What is the minimum New York sales tax penalty if no tax is due?
$50 for failing to file, or failing to timely file, a return with no tax due.
What interest does New York charge on late sales tax?
The Department sets rates quarterly and compounds daily. For July 1 through September 30, 2026 the late payment and assessment rate for sales and use tax was 14.5% and the refund rate 6%. Check the Department's interest rate page for the current quarter.
How much is the New York vendor collection credit?
5% of the taxes and fees reported, capped at $200 per quarterly or annual reporting period, for quarterly and annual filers who file on time and pay in full.

Sources

  1. TB-ST-805, Sales and Use Tax Penalties — https://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/sales_and_use_tax_penalties.htm
  2. TB-ST-925, Vendor Collection Credit — https://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/vendor_collection_credit.htm
  3. Interest rates, July 1 – September 30, 2026 — https://www.tax.ny.gov/pay/interest/2026/p3.htm
  4. Interest rates index — https://www.tax.ny.gov/pay/interest/
  5. Summary of 2025 sales and other tax type changes — https://www.tax.ny.gov/legal/2025/sales-misc-changes.htm