New York Resale Certificate: How to Get Form ST-120 in 2026

New York has one of the highest combined sales tax rates in the country, making the resale certificate one of the most valuable documents a New York business can hold. Whether you are a retailer in Manhattan, a wholesaler on Long Island, or a contractor working across the five boroughs, understanding how to obtain and use Form ST-120, and the often-overlooked Form ST-120.1, can save your business thousands of dollars every year.

This guide covers everything you need to know about New York resale certificates in 2026.

Understanding New York Sales Tax Rates

Before diving into the certificate itself, it helps to understand what you are saving when you buy tax-free.

State and Local Rates

New York imposes a 4% state sales tax on most tangible personal property and certain services. On top of that, counties and cities add their own local taxes:

Note: New York City also charges an additional 0.375% Metropolitan Commuter Transportation District (MCTD) surcharge, which is included in the 8.875% combined rate above.

At 8.875% in NYC, buying $100,000 in inventory without a resale certificate means paying $8,875 in unnecessary sales tax. Use our savings calculator to see your exact potential savings.

What Is Form ST-120?

Form ST-120, officially titled the Resale Certificate, is issued by the New York State Department of Taxation and Finance. It allows registered vendors to purchase tangible personal property and certain services tax-free when the goods will be resold in the normal course of business.

Key Features of ST-120

• Self-issued: Unlike some states, New York does not mail you a pre-printed certificate. You fill out Form ST-120 yourself and provide it to your supplier.
• No expiration date: ST-120 does not have a set expiration. However, it must reflect your current, valid Certificate of Authority number.
• Blanket or single-purchase: You can issue a blanket ST-120 covering all future qualifying purchases from a supplier, or use it for individual transactions.

What You Need to Complete ST-120

To fill out Form ST-120, you will need:

• Your New York Certificate of Authority number (issued when you register for sales tax)
• Your business name and address
• The seller's name and address
• A description of the tangible personal property or services being purchased
• Whether the certificate is for a single purchase or blanket use
• Your signature and date

Form ST-120.1: The Contractor's Exempt Purchase Certificate

This is where New York stands apart from many other states. Form ST-120.1 is the Contractor Exempt Purchase Certificate, and it is specifically designed for contractors making purchases related to exempt projects.

Who Uses ST-120.1?

Contractors and subcontractors who purchase tangible personal property for use in:

• Capital improvement projects for exempt organizations (nonprofits, government entities)
• Projects for organizations that hold a valid New York tax exemption
• Industrial or manufacturing facility construction where specific exemptions apply

How ST-120.1 Differs from ST-120

Why ST-120.1 Matters for Contractors

In most states, contractors must pay sales tax on materials they purchase and install. New York's ST-120.1 creates an important exception: when you are performing a capital improvement for an exempt organization, you can buy the materials tax-free.

Example: A general contractor building an addition to a church (a tax-exempt organization) can use ST-120.1 to purchase lumber, drywall, plumbing supplies, and other materials without paying sales tax, as long as the church provides its exempt organization documentation.

This certificate is a significant cost-saving tool for contractors who regularly work with:

• Houses of worship
• Charitable organizations
• Government agencies
• Educational institutions
• Hospitals and healthcare facilities

For a broader overview of how resale certificates apply to contractors, see our construction materials sales tax guide or the original contractor and construction guide.

Who Qualifies for a New York Resale Certificate?

For ST-120 (Resale Certificate)

You qualify if you:

• Hold a valid New York Certificate of Authority (sales tax registration)
• Purchase tangible personal property or services for resale
• Are engaged in selling, leasing, or renting taxable goods or services in New York

Common qualifying businesses:

• Retail stores and e-commerce sellers
• Wholesalers and distributors
• Restaurants buying food ingredients for prepared meals
• Auto dealers buying vehicles for resale
• Online marketplace sellers with New York nexus

For ST-120.1 (Contractor Exempt Purchase)

You qualify if you:

• Are a contractor or subcontractor performing work on a project for a tax-exempt entity
• The project qualifies as a capital improvement (not a repair)
• You have documentation of the customer's exempt status

How to Get Your New York Resale Certificate

Step 1: Register for a Certificate of Authority

Before you can use Form ST-120, you must register with the New York State Department of Taxation and Finance and obtain a Certificate of Authority.

How to register:

• Online: Through New York's Online Tax Center (recommended for fastest processing)
• By mail: Submit Form DTF-17 (Application to Register for a Sales Tax Certificate of Authority)

Processing time:

• Online: Typically 7-10 business days
• By mail: 4-6 weeks

Important: It is illegal to make taxable sales in New York without a Certificate of Authority. You can face penalties of up to $500 for each day you operate without one.

Step 2: Complete Form ST-120

Once you have your Certificate of Authority, you can complete and issue Form ST-120 to your suppliers.

Download ST-120 from the New York Department of Taxation and Finance website or request it from your supplier.

Step 3: Provide to Your Suppliers

Give the completed ST-120 to each supplier from whom you want to purchase goods tax-free. Suppliers are required to keep it on file.

Need help getting registered? We handle the complete application process for you.

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What Purchases Qualify for the Resale Exemption?

Exempt Purchases (Tax-Free with ST-120)

• Merchandise for resale: Products you will sell to customers
• Raw materials: Items that become part of a product you manufacture and sell
• Packaging and shipping supplies: Materials used to package goods for sale to customers
• Items for rent or lease: Property you will rent to customers
• Promotional materials: Items given to customers as part of a sale (under certain conditions)

Non-Exempt Purchases (You Must Pay Tax)

• Office equipment and supplies: Computers, desks, printers used by your business
• Tools and machinery: Equipment used in your operations
• Vehicles for business use: Company cars, delivery trucks (unless for resale)
• Building materials: For your own business premises
• Consumables: Cleaning products, maintenance supplies for internal use

The Capital Improvement Distinction

New York draws a sharp line between repairs and capital improvements to real property:

• Capital improvement: An addition or alteration to real property that becomes part of the real property, is a permanent improvement, and increases the value of the property. Not subject to sales tax when billed to the customer.
• Repair: Maintaining or restoring property to its original condition. Subject to sales tax when billed to the customer.

This distinction is critical for contractors because it determines whether you charge your customer sales tax and whether you can use ST-120.1.

New York-Specific Rules to Know

Clothing and Footwear Exemption

New York exempts clothing and footwear items priced under $110 from state sales tax. This affects resellers in the fashion industry, as you may not need a resale certificate for certain low-cost clothing purchases in some jurisdictions, but a blanket ST-120 simplifies accounting.

Food and Beverages

Unprepared food sold in grocery stores is generally exempt from New York sales tax. However, prepared food (restaurant meals, deli items, catered food) is taxable. Restaurants and food service businesses still need ST-120 for ingredient purchases.

Services

New York taxes certain services, including:

• Information services
• Protective and detective services
• Maintenance and repair of real property (repairs, not capital improvements)
• Certain entertainment and amusement charges

If you resell taxable services, you can use ST-120 for your purchases of those services.

Reciprocity with Other States

New York does not broadly accept out-of-state resale certificates. If an out-of-state buyer wants to purchase tax-free from a New York seller, the buyer should provide either:

• A valid New York ST-120
• A properly completed Multistate Tax Commission (MTC) Uniform Sales & Use Tax Certificate

Common Mistakes with New York Resale Certificates

Mistake 1: Operating Without a Certificate of Authority

Some businesses issue resale certificates before they have actually registered. This is illegal in New York and can result in penalties, back taxes, and interest.

Mistake 2: Using ST-120 for Personal Purchases

Using a resale certificate for personal items is tax fraud. New York actively pursues this through audits and data matching.

Mistake 3: Confusing Repairs with Capital Improvements

Contractors who misclassify repairs as capital improvements (or vice versa) create sales tax problems. When in doubt, consult the Department of Taxation and Finance's guidelines or a tax professional.

Mistake 4: Not Collecting Certificates from Buyers

If you are a seller accepting tax-free sales, you must collect and keep ST-120 forms from your buyers. Without them, you are liable for the uncollected tax during an audit.

Mistake 5: Failing to Update Certificate Information

If your business name, address, or Certificate of Authority number changes, issue new ST-120 forms to all your suppliers.

Record Keeping Requirements

New York requires you to keep resale certificates and related records for at least 3 years from the date the return was due or filed, whichever is later. The Department of Taxation and Finance can audit up to 3 years back under normal circumstances, but this period extends if fraud or significant underreporting is suspected.

What to keep on file:

• All ST-120 forms you have issued to suppliers
• All ST-120 forms you have received from buyers
• All ST-120.1 forms and supporting exempt organization documentation
• Sales and purchase records tied to each certificate
• Verification records confirming Certificate of Authority numbers

How Much Can You Save in New York?

These numbers make clear why every qualifying business should have a resale certificate. Estimate your specific savings with our savings calculator.

Get Your New York Resale Certificate

Getting properly registered in New York does not have to be complicated. We handle the complete Certificate of Authority application and walk you through using Form ST-120 and ST-120.1 correctly.

• Complete application assistance
• Fast processing
• Guidance on ST-120 and ST-120.1 usage
• Ongoing compliance support

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For full details on New York's requirements, visit our New York state page.

Between the 4% state rate and local taxes that can push combined rates past 8.875%, a New York resale certificate is not optional for any business buying goods for resale. Get registered, issue your ST-120 correctly, and if you work with exempt organizations, make sure you have your ST-120.1 in order too.

Related Articles

• What Is a Resale Certificate? - Understand the fundamentals before navigating New York's specific forms and requirements.
• Resale Certificate vs. Tax Exempt Certificate - New York uses both ST-120 and ST-119. Learn when each applies.
• Sales Tax Exemption Forms: Complete Guide - Reference for every form type across all 50 states, including New York's ST-120 and ST-120.1.