High Tariffs Fuel Sales Tax
Revenue Increases; Report
ALBANY—Local government sales tax collections totaled $12.7 billion in the first half of 2026, an increase of 6.8% ($803 million) compared to the same period last year, according to a report released on July 30 by New York State Comptroller Thomas P. DiNapoli. The 6.8% increase in collections was stronger than the year over year growth during the same period in 2025 (3.7%) and more than three times higher than the growth rate in 2024 (1.9%).
“New York’s local sales tax collections grew significantly in the first half of 2026 compared to last year, but this rate of growth may not last,” Mr. DiNapoli said. “This growth is due in part to higher prices for goods and services as a result of higher tariffs and global conflicts. Local officials should be cautious in estimating future revenue amid current economic uncertainties and harmful federal policies.”
Some key findings from the report include:
- Each of the state’s 10 economic development regions, including New York City, experienced a year over year increase in first half collections. New York City’s sales tax collections totaled nearly $5.8 billion in the first half, an increase of 7.8% ($418 million), higher than the increase during the same period in 2025 (4.7%).
- Outside of New York City, aggregate first half collections for counties and cities grew by 5.6% ($324 million), double the increase during the same period in 2025 (2.8%). Regionally, first half growth outside of New York City ranged from a low of 2.8% in the North Country to a high of 7.1% on Long Island.
- Fifty two of the state’s 57 counties experienced an increase in first half sales tax collections. Among the five counties that reported declines, Sullivan County had the steepest decrease at 5.3%, followed by Lewis (3.0%), Hamilton (2.9%), Cortland (2.8%) and St. Lawrence (2.6%).
- Thirteen of the 18 cities outside New York City that impose their own sales tax experienced growth in the first half. Ogdensburg had the largest increase at 22.8%, followed by White Plains (11.3%) and Olean (9.6%).
Published: August 5, 2026.