(The Center Square) — New York local governments collected $12.7 billion from sales taxes during the first six months of the year — a 6.8% hike from a year ago, according to a new report from the state’s fiscal watchdog.
The report, issued Friday by state Comptroller Tom DiNapoli’s office, said municipal government sales tax collections totaled $12.7 billion in the first half of 2026, an increase of $803 million compared to the same period last year.
The 6.8% rise in collections was stronger than year-over-year growth in the same period in 2025, or 3.7%, according to the report, and three times higher than the rate two years ago.
DiNapoli said while the state’s sales tax collections grew during the two quarters, the upward momentum might not last much longer.
“This growth is due in part to higher prices for goods and services as a result of higher tariffs and global conflicts,” he said in a statement. “Local officials should be cautious in estimating future revenue amid the current economic uncertainties and harmful federal policies.”
DiNapoli’s analysis found that 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, he said, an increase of 7.8% ($418 million), higher than the increase in the same period last year.
Outside of New York City, aggregate first-half collections for counties and cities grew by 5.6%, or $324 million — double the increase experienced in the same period in 2025, according to the report.
Regionally, first-half growth outside of New York City ranged from a low of 2.8% (North Country) to a high of 7.1% (Long Island). Fifty-two out of 57 counties experienced an increase in first-half sales tax collections, the report stated.
Seneca County saw the highest growth in the first half at 16.5%, followed by the counties of Genesee (12.5%), Suffolk and Wyoming (both 9.2%) and Niagara (8.9%), DiNapoli said.
New York and its local governments consistently top the charts nationally when it comes to higher taxes and spending.
A January report by the nonpartisan Citizens Budget Commission found that the state and its localities were the highest-taxing and third-highest-spending among all U.S. states.
New York collected an average of $12,495 in taxes per person in 2023 – 52% more than the national average – and the most per $1,000 personal income, according to the report.
Collectively, the state and local governments collected more revenue from many types of taxes – property, personal income, corporate, and sales – than most other states and their localities, the report said.
Critics say the state’s high tax burden impacts its economic growth and contributes to an exodus of businesses and taxpayers to other states.
