If you`re a resident of New York and planning to hire a contractor for a home improvement project, one question that might be on your mind is whether or not the contractor will charge sales tax on their services. The short answer is that it depends on the type of work they`re doing.

In general, contractors who are providing services related to construction, repairs, or improvements to real property are required to charge sales tax on their services. This includes things like building a new addition to your home, installing new windows or siding, or repairing your roof.

However, there are some exceptions to this rule. For example, if the work being done is purely cosmetic and does not involve any structural changes or improvements to the property, such as painting or wallpapering, then the contractor is not required to charge sales tax.

It`s also worth noting that if the contractor you`re working with is not based in New York, they may not be required to charge sales tax on their services. This is because New York State only requires out-of-state businesses to charge sales tax if they have a physical presence in the state, such as an office or a warehouse.

To be sure whether or not your contractor should charge sales tax on their services, it`s always a good idea to consult with a tax professional or contact the New York State Department of Taxation and Finance for guidance.

In conclusion, when it comes to hiring a contractor for a home improvement project in New York, it`s important to understand the sales tax rules that apply. While most contractors will need to charge sales tax on their services, there are exceptions to this rule depending on the type of work being done. By doing a little research and consulting with experts, you can ensure that you`re prepared and informed throughout the entire process.