New York's local sales tax receipts jumped 5.1% in the first quarter of 2026, pushing statewide collections to $6.1 billion as winter gave way to spring. The surge was driven largely by New York City, which delivered most of the increase and pulled the statewide total well ahead of last year's first quarter. State officials say that headline number tells only part of the story, and that the underlying regional gaps matter a lot for local budgets.
According to a report by the Office of the New York State Comptroller, collections from January through March rose $295 million compared with a year earlier. The report shows total first quarter collections of $6.1 billion, with New York City up 6.2% (about $166 million) and the rest of the state up 3.9% (roughly $107 million). That pace exceeded first quarter growth in both 2025 and 2024.
State Comptroller Tom DiNapoli cautioned in the Office of the New York State Comptroller: "Local sales tax collections experienced a substantial increase in the first quarter compared to last year, but growth varied significantly by region." He also warned that "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." The reminder is that one strong quarter can just as easily be followed by a soft one, especially in places that rely heavily on volatile spending.
Winners and Losers Around the State
Outside the five boroughs, results were all over the map. Ulster County led the pack with 10.7% growth, followed by Genesee at 9.7%, Seneca at 9.6%, and Saratoga and Cattaraugus, both at 8.4%. On the downside, Sullivan dropped 13.7%, Montgomery fell 8.1%, Lewis slid 6.6% and Monroe declined 5.1%.
Among the 18 cities outside New York City that levy their own sales tax, 10 posted year over year gains. Ogdensburg jumped 27.2%, while Salamanca saw a 16.1% drop. These county and city figures were highlighted by Spectrum News NY1, underscoring just how uneven the tax landscape looks once you zoom in.
What Is Driving the Increase
Several technical and economic forces helped push first quarter receipts higher. Inflation picked up in March, with the U.S. Consumer Price Index rising 3.3% year over year, which increases the dollar value of taxable sales, according to the Bureau of Labor Statistics. A state law that began taxing short term rental occupancies on March 1, 2025 also broadened the taxable base for lodging and related fees, per the New York State Department of Taxation and Finance.
For city and county budget officials, the extra cash is helpful, but they are being warned not to treat it as a sure thing. The comptroller urged local governments to avoid building budgets that assume one quarter's bump will stick, and to watch upcoming distributions and economic indicators before committing to new spending. Local finance directors say they will keep a close eye on the April and May numbers before making any moves on their revenue forecasts.
