Driven higher by New York City, local government sales tax collections in New York state increased by 5.1%, or $295 million, in the first quarter of 2026, according to a report released Wednesday by state Comptroller Tom DiNapoli.
Collections totaled $6.1 billion during the period between January and March, DiNapoli said. Growth was higher than the 3.2% year-over-year growth in the first quarter of 2025 and the 1.6% growth in the same period in 2024.
According to the report, New York City’s sales tax grew 6.2% year over year, or $166 million, in the first quarter.
Collections from the rest of the state outside New York City grew 3.9%, or $107 million. Ulster County had the highest quarterly growth at 10.7%, followed by Genesee County at 9.7%, Seneca County at 9.6% and Saratoga and Cattaraugus counties both at 8.4%.
Seeing the steepest decline in collections was Sullivan County (-13.7%), followed by Montgomery (-8.1%), Lewis (-6.6%) and Monroe (-5.1%).
Of the 18 cities outside of New York City that impose their own sales tax, 10 saw year-over-year increases in the first quarter. The strongest showing was Ogdensburg, at 27.2%, followed by Olean (11.7%) and Oswego (8.9%). Cities seeing decreases were Salamanca (-16.1%), Glens Falls (-7.2%) and Mount Vernon (-4.6%).
“Local sales tax collections experienced a substantial increase in the first quarter compared to last year, but growth varied significantly by region,” DiNapoli said in a statement. “An economic slowdown due to geopolitical conflicts and federal actions could affect future tax collections, and local governments must be cautious in estimating this revenue.”
