What is the sales tax rate on Long Island?
Nassau County sales tax is 8.625%. Suffolk County sales tax is 8.75%. The structure is the same in both counties: 4% goes to New York State, 0.375% goes to the Metropolitan Commuter Transportation District, and the rest goes to the county.
Suffolk County increased its rate from 8.625% to 8.75% effective March 1, 2025. If you operate in Suffolk and haven’t updated your point of sale system or invoicing software, you may be collecting the wrong amount. Undercharging means you owe the state more than you collected. Overcharging can lead to customer complaints and potential refunds.
Whether you need to collect sales tax depends on what your business sells. Most professional services are exempt from New York sales tax. Consulting, marketing, bookkeeping, and similar work don’t require collection. But if you sell tangible goods, even alongside services, you likely need to collect and remit. For small business bookkeeping on Long Island, understanding which transactions are taxable affects how you categorize revenue.
Some services are taxable under New York law. Cleaning services, landscaping, and certain repair work fall into taxable categories. The rules aren’t always obvious, so verify your specific situation with the NY Department of Taxation or your accountant if you’re unsure.
To collect sales tax legally, you need a Certificate of Authority from the New York State Department of Taxation and Finance. Register through their website before you start collecting. Operating without one while charging customers sales tax creates compliance problems even if you intend to remit the money.
Filing frequency depends on your sales volume. Most small businesses file quarterly, but high-volume operations may file monthly. The state assigns your schedule when you register.
Tracking sales tax correctly requires your accounting system to separate taxable and non-taxable sales and record collected tax as a liability rather than revenue. Getting this wrong means either penalties for under-remittance or cash flow confusion when collected tax shows up as income. If you’re unsure whether your current setup handles this properly, it’s worth reviewing before your next filing deadline.
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