Key figures
New York receivables
2026, with sources
SaaS is taxable
New York’s position is short and old: prewritten computer software is tangible personal property, taxable whether it is sold on a disk, by download, or by remote access (Tax Bulletin ST-128). That makes most SaaS taxable at the state’s 4% plus the local rate where the customer is, 8⅞% in New York City. Custom software designed to one buyer’s specifications is not taxable, but a configurable product sold to many customers is prewritten.
The rate follows the customer, and Publication 718 lists each county and city rate: 8% in most counties, 8⅜% in Westchester outside its cities, 8¾% in Erie. A company billing customers across the state needs its billing system to know where each one is.
When registration starts
A business with no physical presence must register once, in the preceding four sales tax quarters, it made more than $500,000 of sales of tangible property (which includes software) delivered into New York and more than 100 such sales. Both tests must be met. Physical presence is different: a single employee or office in New York makes a company a vendor without any threshold, and it must register for a Certificate of Authority at least 20 days before it starts making taxable sales.
That is why the first New York hire is usually the sales tax moment for a SaaS startup. A company with $300,000 of New York revenue and no sales tax registration becomes a vendor the day its first New York employee starts.
Filing and records
New registrants usually file quarterly on Form ST-100. New York’s sales tax quarters are offset from the calendar (March–May, June–August, September–November, December–February), with returns due on the 20th of the following month. A vendor with $300,000 or more of taxable receipts in a quarter becomes a part-quarterly (monthly) filer; one owing $3,000 or less a year may be moved to annual. A registered vendor files even in a quarter with no sales.
For customer prepayments and credits that are never used, the State Comptroller’s unclaimed funds rules apply; credit balances left on the books for years are a reportable item, not income.
Deadlines
- Mar 20, Jun 20, Sep 20, Dec 20Quarterly sales and use tax return (quarters end Feb, May, Aug, Nov)Form ST-100
- At least 20 days before you startRegister before making taxable salesCertificate of Authority
The federal baseline
This page covers what New York adds. The federal rules underneath it apply here too.
Common questions
Is our SaaS product taxable in New York?
Yes. New York taxes prewritten computer software as tangible personal property no matter how it is delivered, and the Department’s bulletin names remote access explicitly. Custom software built to one customer’s specifications is not taxable; software that is not designed for a particular purchaser is.
We passed $500,000 of New York sales. Do we have to register?
Not on dollars alone. A remote seller must register only when, in the preceding four sales tax quarters, it had more than $500,000 of New York sales and more than 100 of them. A SaaS company with $700,000 of New York sales across 40 enterprise customers does not meet the transaction test, unless it has a physical presence, which an employee working in New York is.
Receivables next door
- CTConnecticut receivablesConnecticut charges 6.35% with no local rates, but SaaS and software sold to businesses are 1%. Remote sellers register at $100,000 and 200 sales in a year.
- MAMassachusetts receivablesMassachusetts taxes most SaaS as prewritten software at 6.25%, with no local rates. Remote sellers register once Massachusetts sales exceed $100,000; there is no transaction count.
- NJNew Jersey receivablesNew Jersey charges 6.625% sales tax and still counts 200 transactions toward economic nexus. Remotely accessed SaaS is generally not taxable; electronically delivered software is, unless bought for business use.
- PAPennsylvania receivablesPennsylvania taxes SaaS at 6%, with 7% in Allegheny County and 8% in Philadelphia, and requires remote sellers to register once sales pass $100,000.
- VTVermont receivablesVermont has taxed SaaS at 6% since July 1, 2024 (7% in local-option towns). Remote sellers register after $100,000 or 200 transactions in any twelve months.
Founder guides on this
- Sales taxSales tax nexus for startups: when you owe tax in a stateSince Wayfair, selling into a state can create a sales tax obligation. How economic nexus works, why SaaS is taxable in some states and when to register.
- RevenueDeferred revenue for SaaS startups, explainedAn annual prepayment is cash today and revenue over a year. How deferred revenue works under ASC 606, why it’s a liability, and the schedule behind it.
- StripeHow to reconcile Stripe payouts to your booksA Stripe payout is charges less fees, refunds and disputes, batched across days. How to book it gross, tie it to the bank, and keep revenue right.
More of the New York guide
- AccountingAccounting and state tax in New YorkCorporate tax, conformity to federal rules, apportionment and what it does to your books
- PayablesPayables and contractors in New YorkPaying vendors and contractors: 1099 filing, use tax, contractor tests and withholding
- PayrollPayroll taxes and employer rules in New YorkWithholding, unemployment insurance, paid leave, minimum wage and the rules on paydays
- ComplianceCompliance and filings in New YorkRegistering to do business, annual reports, franchise tax and the filing calendar
- AdvisoryAdvisory: credits and decisions in New YorkCredits, incentives and the decisions that are cheaper to get right the first time
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
- NYS Department of Taxation and Finance — Publication 718, sales and use tax rates
- NYS Department of Taxation and Finance — Registration requirement for businesses with no physical presence
- NYS Department of Taxation and Finance — Computer software (TB-ST-128)
- NYS Department of Taxation and Finance — Filing requirements for sales and use tax returns
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.