By CaraLynn Caulfield
Sales tax collections on Long Island totaled more than $1.74 billion during the first half of 2025—a 2.2% increase over the same period last year—according to a report released by New York State Comptroller Thomas P. DiNapoli.
On July 29, DiNapoli’s office released its midyear analysis of local sales tax revenues, showing that Long Island remains the second-largest sales tax-generating region in the state, behind only New York City. Statewide, local governments collected $11.9 billion in sales tax revenue from January through June, up 3.7%—more than double the growth rate from the first half of 2024. Long Island alone accounted for more than 14% of those collections.
Suffolk County led Long Island’s growth, with a 3.0% increase totaling $961.3 million. In comparison, Nassau County’s collections rose by 1.2%, reaching $779.3 million. Suffolk’s second-quarter jump of 4.2% may reflect the county’s sales tax rate increase—from 4.625% to 4.75%—which took effect March 1 to fund a new drinking water protection program.
Both Nassau and Suffolk counties levy a 4.25% local sales tax, but they handle the revenue differently. In Nassau, the county retains the first 3% and shares a portion of the remaining 0.75% with towns, cities, and villages based on population. An additional 0.50% is also retained by the county. Suffolk County, in contrast, does not share any of its local sales tax revenue with municipalities within its borders.
“While New York’s local sales tax collections experienced stronger growth in the first half of 2025, future revenues may become less predictable as local communities weather federal policy changes, inflation and other economic factors,” DiNapoli said in a statement. He encouraged local officials to use the financial tools and guidance his office provides to maintain fiscal resilience.