Rates last verified: August 26th, 2026
Sources: New York Department of Public Service; New York Tax Law; New York State Department of Taxation and Finance. Full citations at the bottom of this page.
New York does not choose between taxing telecom under sales tax or under a dedicated tax. It does both, and adds surcharges on top. Sales tax applies to intrastate service, an excise tax under Tax Law section 186-e applies to gross receipts including certain interstate charges, providers in the New York metro area owe additional surcharges, and 911 funding arrives through a state wireless surcharge plus county-level fees on wireline service.
Quick Facts
| Item | New York Treatment |
|---|---|
| Sales tax on intrastate telecom | 4% state plus local rates; an additional 0.375% applies in the Metropolitan Commuter Transportation District (MCTD) |
| Excise tax on telecommunication services | 2.5% of gross receipts; 2.9% for mobile telecommunications services (Tax Law section 186-e) |
| Interstate calls | Excluded from sales tax; subject to the 186-e excise when the service originates or terminates in New York and is charged to a New York service address |
| Wireless 911 surcharge (postpaid) | $1.20 per device, per month (state); most counties and New York City add a local surcharge, for combined totals from $1.20 to $2.60 |
| Wireless 911 surcharge (prepaid) | $0.90 per retail sale (state); combined state and local totals run from $0.90 to $2.30 |
| Wireline E911 fee | Local: up to 35 cents per access line, per month; New York City, Tompkins County, and Onondaga County may impose up to $1.00 |
| Municipal surcharge | Up to 1% on local charges; up to 3% in Buffalo, Rochester, and Yonkers |
| Internet access | Exempt under the federal Internet Tax Freedom Act |
How New York Taxes Telecom Services
Two state taxes sit at the center, and they draw their bases differently. Sales tax under Tax Law section 1105(b) applies to telephony and telegraph service of whatever nature, including intrastate mobile telecommunications service, and it excludes interstate and international service. The excise tax under section 186-e applies to gross receipts from intrastate service, and also to interstate and international service that originates or terminates in New York and is charged to a New York service address. The same interstate call can escape sales tax and still owe the excise.
The excise rate is 2.5%. Mobile telecommunications services provided by a home service provider pay 2.9% when the customer's place of primary use is in New York. Providers commonly recover the excise through a gross revenue tax surcharge on customer bills, at recovery rates the Department of Public Service publishes.
Geography adds a third layer. Within the Metropolitan Commuter Transportation District, sales tax carries an additional 0.375% rate, and telecom providers owe a separate tax surcharge that they also typically recover through line items on metro-area bills. Cities and villages add a municipal surcharge on local charges of up to 1%, or up to 3% in Buffalo, Rochester, and Yonkers.
911 And Other Per-Line Fees
New York splits 911 funding by technology. Wireless service pays a state public safety communications surcharge of $1.20 per device, per month, which the supplier must state as a separate line item. Most counties and New York City impose a local wireless surcharge on top; combined state and local totals run from $1.20 in Hamilton County, which imposes no local surcharge, to $2.60 in Broome County, per Publication 451 (effective September 1, 2025).
Prepaid wireless pays at the register instead: a state surcharge of 90 cents on each retail sale of a prepaid wireless communications service, plus a local surcharge in most jurisdictions. Combined totals run from 90 cents to $2.30, per Publication 452. The seller collects and remits.
Wireline service pays a locally administered E911 fee of up to 35 cents per access line, per month, capped at 75 access lines per customer per location. New York City, Tompkins County, and Onondaga County may impose up to $1.00.
Taxability By Service Type
- Intrastate telephone and telegraph service: subject to sales tax and the 186-e excise.
- Interstate and international service: excluded from sales tax; subject to the excise when it originates or terminates in New York and is charged to a New York service address.
- Mobile telecommunications service: sales tax applies to the intrastate portion; the excise applies at 2.9% based on the customer's place of primary use.
- Prepaid wireless: the 911 surcharge applies per retail sale, collected by the seller.
- Internet access: exempt from state and local taxes under the federal Internet Tax Freedom Act.
How CereTax Handles New York
New York's difficulty is parallel bases. Sales tax, the excise, the metro-area surcharges, and the 911 fees each apply to a different slice of the same invoice, and the slice depends on where the call goes, where the customer sits, and what kind of line it is. CereTax applies each New York tax to its own base, assigns local rates and county fees at the rooftop level, and keeps an audit trail behind every calculation. If you serve customers in New York, book a demo and bring a real invoice.
Sources
- New York Department of Public Service, Telecommunications Taxes and Surcharges. Accessed August 25, 2026.
- Section 186-e, New York Tax Law, excise tax on telecommunication services. Accessed August 25, 2026.
- Section 1105, New York Tax Law, imposition of sales tax. Accessed August 25, 2026.
- New York State Department of Taxation and Finance, Publication 451, Wireless Communications Surcharge Rates on Postpaid Wireless Communications Services (effective September 1, 2025). Accessed August 25, 2026.
- New York State Department of Taxation and Finance, Publication 452, Wireless Communications Surcharge Rates on Prepaid Wireless Communications Services (effective September 1, 2025). Accessed August 25, 2026.
- Internet Tax Freedom Act, 47 U.S.C. § 151 note.
See how other states compare on the full telecom tax by state table.
