New York Sales Tax on Home Improvement (2026): Capital Improvement or Repair
When a New York contractor charges sales tax on a home job, what the ST-124 does, and three jobs worked at the 4% state rate.
Not tax advice. General information from each state's revenue department, checked Oct 29, 2026. Rates shown are the state rate; city and county tax is extra where it applies. The facts of your job and contract can change the answer; for a specific job, ask a tax professional in your state.
The rule in New York
Repairs taxed
On a capital improvement, get an ST-124, pay tax on materials and charge none. Repairs and maintenance are taxed on the full bill.
4%
4% plus local up to 4.875%
Itemizing or time and materials
Itemizing doesn't make a capital improvement taxable.
ST-124
Source: NY DTF TB-ST-104; Publication 862 (DTF bulletin, Oct 2026)
“there is no sales tax due on the charge to the customer”
Three jobs, worked
| Job | Customer | You pay |
|---|---|---|
| Bathroom $12,000 job, $5,000 materials | $0 remodel $480 repair | $200 |
| Kitchen $40,000 job, $15,000 materials | $0 remodel $1,600 repair | $600 |
| Addition $90,000 job, $35,000 materials | $0 remodel $3,600 repair | $1,400 |
On the kitchen: A remodel is a capital improvement: the customer pays nothing and you pay $600 on materials. A repair job is taxed: $1,600 on the full $40,000.
How it works in New York
Capital improvement
Adds value or a new use, becomes part of the home, and is meant to be permanent. Remodeling a kitchen or bath, an addition and new built-in cabinets usually qualify.
Repair or maintenance
Keeps the home in working order: fixing a leak, replacing a broken window pane, painting a room. The full charge is taxable.
Materials
On a capital improvement you pay tax on materials when you buy them. On a repair job you can claim a credit or refund for tax paid on materials that went to the customer.
Also check
- Keep the signed ST-124 with the job. It relieves you of liability for the tax. Without it, you need the contract or other records to show the work was a capital improvement.
- Itemizing materials on a capital improvement doesn't make them taxable.
- Publication 862, the state's line-by-line list of jobs, dates from 2001; read it with the current bulletins.
New York sales tax questions
Do contractors charge sales tax in New York?
On repairs and maintenance, yes: on the full bill, at 4% plus local tax. On a capital improvement with an ST-124, no; the contractor pays tax on materials instead.
What is an ST-124?
The Certificate of Capital Improvement. The customer signs it, and you keep it to show the job wasn't taxable.
Is a kitchen remodel taxable in New York?
Not as a capital improvement. Free-standing appliances sold with it are taxable sales.
Compare other states
How we checked
We read each state's sales tax rule for construction contractors on the revenue department or legislature site, and its 2026 state rate. Two independent research passes covered all 50 states and DC, and a third reviewer checked the result. Where a state's own page would not load, the row names the copy we read. Last checked .
This guide explains the general rule for remodeling an owner-occupied home. It is not tax advice.