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Business & LegalMay 2026

Herkimer County Sales Tax (8.25%) & Capital Improvement Rules

Herkimer County, NY contractors: applying the 8.25% combined sales tax, when to use ST-124, and how to keep bids compliant in 2026.

Herkimer County Combined Rate — 8.25% - **Rate split:** State 4.0% + Local 4.25% = **8.25%** combined. - **Applies to:** Repairs, maintenance, and taxable services. Show the rate on customer-facing estimates. - **Materials:** Typically taxable at purchase; factor local portion into your markup.

Capital Improvements (ST-124) - Collect **NYS Form ST-124** from the owner for qualifying capital improvements; do **not** charge sales tax on labor when the form is on file. - Keep the signed ST-124 with your estimate and invoice package for audit protection.

Estimating Workflow - Use the **Tax Save** calculator → select **Herkimer County** to auto-fill 8.25%. - Toggle **Capital Improvement (ST-124)** when the job scope qualifies; the calculator zeroes out tax on labor and notes ST-124 in the material list/PDF. - Keep margins intact by separating materials, labor, overhead, and profit lines.

Quick Local Notes - Town/village permits can add lead times—pad schedules accordingly. - For mixed-scope jobs (repair + improvement), split line items and apply tax only where required.

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