Local government sales tax collections in New York state increased by 4.5%, or $1 billion, in 2025 from the year prior, according to a report released Tuesday by state Comptroller Tom DiNapoli.
Collections totaled $24.4 billion during the calendar year, DiNapoli said. Growth was higher than the 3.8% average annual growth rate from the 2010 to 2019 period of recovery following the Great Recession and before the COVID-19 pandemic. Last year, sales tax collections increased by only 1.6%.
According to the report, New York City’s sales tax grew 5% in 2025, boosted by robust domestic tourism, including record average nightly hotel rates and solid Broadway attendance, DiNapoli found.
Collections from the rest of the state outside New York City grew 4%, or $443 million, compared to 2024. Chenango County had the highest growth last year at 11.8%, followed by Yates (11%), Hamilton (10.9%), and Delaware (10.7%) counties.
Seeing the steepest decline in collections was Sullivan County (-5.2%), followed by Schoharie (-3.9%).
Of the 18 cities outside of New York City that impose their own sales tax, 12 saw year-over-year increases in 2025. The strongest showing was Norwich, at 20.9%, followed by Salamanca (7.7%) and White Plains (7.1%). Cities seeing decreases were Gloversville (-7.2%), Utica (-7.1%) and Oneida (-4.7%).
“Local sales tax growth ticked up last year,” DiNapoli said in a statement. “However, with the potential for policy changes at the federal level to affect every level of government funding, as well as the continued impact of tariffs, local officials must budget carefully to safeguard the services their communities rely on.”