New Report: Sales Tax Remains Vital to County Finances
Sales tax has become one of the most important revenue sources supporting county government in New York—and a critical tool for funding essential services while limiting pressure on local property taxpayers.
Our new 2026 Sales Tax Report examines the latest trends shaping county sales tax collections, what they mean for local governments across New York, and provides a county-by-county comparison of year-over-year sales tax collections.
Counties are responsible for administering—and helping finance—more than $14 billion annually in state-mandated programs and services, from Medicaid and public assistance to public health, elections, infrastructure, and public safety. As these costs continue to grow, sales tax plays an increasingly important role in keeping these services funded.
Among the report's key findings:
- Sales tax now exceeds property tax revenue in 35 counties, after required sharing with municipalities.
- County sales tax collections remained strong in 2025 and into 2026, even as economic conditions and consumer spending patterns continue to shift.
- Online marketplace reforms have generated an estimated $5.3 billion in additional local sales tax revenue for counties and New York City since 2019.
- Statewide taxation of short-term rentals generated approximately $66 million in local sales tax during its first full year, providing particularly meaningful revenue in tourism-dependent communities.
The report also explores how inflation, tourism, online commerce, consumer behavior, and differences among regional economies are shaping collections—and why continued sales tax strength will be important as counties confront rising costs and state and federal fiscal pressures.
