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New York State Sales Tax Penalty and Interest Discount (PAID) Program

What is PAID

Qualifying businesses may receive a 50% reduction in interest and 100% relief from penalties when they pay the required reduced amount on all PAID-eligible bills by December 31, 2026.

Benefits of the PAID Program

If your business qualifies for the PAID program, it may help you:

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Reduce Tax Debt

significantly reduce the additional costs associated with unpaid sales tax.

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Address Collection Issues

Resolving eligible sales tax liabilities may help businesses address collection-related issues associated with qualifying bills.

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Prepare for Re-Registration

PAID can provide eligible businesses an opportunity to resolve qualifying liabilities before New York's upcoming sales tax re-registration program.

Who is eligible

Your business may qualify for PAID if it has an active Certificate of Authority and unpaid sales tax bills that are subject to collection action and no longer have formal appeal rights. Bills associated with fraud are excluded from the program.

Eligible taxpayers do not need to submit a separate application to enroll. The New York State Department of Taxation and Finance identifies taxpayers with qualifying bills and sends them a notice.

PAID eligibility is based on bills that qualify as of September 1, 2026. Balances, rather than bills, due with sales tax returns for periods ending August 31, 2026, and November 30, 2026 are not eligible for PAID.

How it works

If your business is eligible:

  1. You will receive a notice identifying the sales tax bills that qualify for PAID. The notice will show the applicable savings and the reduced amount required to receive the program benefits.
  2. You must pay the required amount for all PAID-eligible bills by December 31, 2026.

You may make smaller payments toward your total PAID balance if you prefer. You do not need a separate payment plan for these payments, but the full amount for all PAID-eligible bills must be paid by the deadline December 31, 2026.

If you do not take advantage of the program, you remain responsible for the full undiscounted sales tax balance. Formerly eligible bills may become subject to collection action beginning January 1, 2027, and applicable penalty and interest may continue at the statutory rate.

What to do next

If you receive a PAID notice, carefully review the eligible bills and the required payment amount.

  • Review your PAID notice.
  • Confirm the assessment IDs.
  • Calculate the required PAID amount.
  • Make the required electronic payment.
Deadline: December 31, 2026

To pay using Online Services

The New York State Tax Department provides two electronic payment methods for PAID:

  • Online Services — use your New York State Online Services account.
  • Quick Pay — use the assessment ID beginning with the letter L.

Payments may take up to 14 days to post. Make sure your payment is successfully processed before the deadline.

PAID overpayments are not refundable under the program law.

To pay using Quick Pay

Businesses that do not want to use an Online Services account may use the New York State Quick Pay application.

You will need to:

  • verify your business information,
  • select Assessment as the type of payment so that it is properly applied toward PAID, and
  • enter each PAID assessment ID listed on your notice.

If you cannot make the payment online, we provide telephone assistance at
718-523-0107

Frequently asked questions

You can use the New York State Quick Pay application without an Online Services account. If you cannot make the payment online, we provide telephone assistance at 718-523-0107 and have your PAID notice available

Payments must use the appropriate assessment ID so they are correctly applied toward the PAID program.

To receive PAID benefits, all PAID-eligible bills must be paid by December 31, 2026. An installment payment agreement may be available for the undiscounted tax balance, but it does not replace the PAID payment requirement.

If you believe your business has qualifying sales tax bills but did not receive a PAID notice, contact the New York State Tax Department to discuss your account and eligibility.

Keep in mind that balances from sales tax returns for periods ending August 31, 2026, and November 30, 2026, are not eligible for PAID.

Yes. When all PAID-eligible sales tax bills under the business ID are paid, associated responsible-person bills may also be considered paid in full and closed.

Payments must be made using the assessment ID associated with the original sales tax liability issued under the business EIN, as shown on the PAID notice.

If all bills listed on the tax warrant are paid in full, the warrant is automatically satisfied.

If your installment agreement includes both eligible and ineligible bills, paying all PAID-eligible bills in full by December 31, 2026, can reduce the number of remaining months on the agreement while the monthly payment amount remains the same.

Collection action on PAID-eligible sales tax bills is paused during the program. Other bills that are not eligible for PAID may remain subject to applicable collection action.

No. Under the PAID program law, overpayments of PAID balances are not refunded.

Need Help With Your Sales Tax Liability?

If you have questions about your New York sales tax liabilities, PAID eligibility, or notices from the Tax Department, Tax King Service can help you review your situation and understand your available options.

CONTACT TAX KING SERVICE

Important Notice:

PAID eligibility and the amount required to participate are determined by the New York State Department of Taxation and Finance. Businesses should review their official PAID notice and tax account for their specific circumstances.
Last updated: September 15, 2026.

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