Many home renovations qualify as capital improvements which are exempt from sales tax. Building materials purchased for capital improvement work are taxable (whether purchased by a contractor, subcontractor, or homeowner), and a contractor purchasing building materials on behalf of a homeowner is permitted to mark up their materials cost to the homeowner (including the cost of sales tax). However, homeowners may not be charged sales tax as a percentage of combined labor and materials costs for capital improvement work performed by a contractor.
If you ever see itemized sales tax on a receipt or invoice from a contractor for capital improvement work, you can likely claim this back from the New York Tax Department.
Sales tax savings calculated as a percentage of capital improvement expenditure.
Claimed by removing sales tax from capital improvement invoices (pre-purchase) or as a refund from the New York State Tax Department (post-purchase). More information on refunds available here.
How to Claim
Required Information
Timeline
FAQs
