New Rochelle sales tax growth lags behind state and county rates

New Rochelle’s sales tax revenue grew by 5.6% in the first nine months of 2026, a rate that fell behind the 7.6% increase recorded across New York state. The city collected $34.7 million during that period, an amount that trailed the growth seen in Westchester County and the Mid-Hudson region. While the city’s totals rose, its pace of growth did not match the broader economic trends in the state.

The figures appear in a report released by New York State Comptroller Thomas P. DiNapoli. The document, titled “Local Sales Tax Collections From January to September 2026,” details sales tax performance across the state. New Rochelle is one of 18 cities outside New York City that impose their own sales taxes rather than receiving a share of county collections.

The city’s revenue increased by $1.85 million compared to the same period in 2025, which saw collections of $32.85 million. Westchester County recorded a 6.8% increase during the same timeframe. The Mid-Hudson region saw a 6.3% rise, while the statewide growth rate reached 7.6%.

Growth in New Rochelle accelerated through the year. Collections increased by 2.4% in the first quarter, 6.5% in the second quarter, and 7.7% in the third quarter. In the final quarter of the nine-month period, the city collected $12.13 million, up from $11.26 million in 2025. This represented an increase of approximately $870,000 and marked the city’s strongest performance of the year.

Among the four Westchester cities with their own sales taxes, New Rochelle ranked second in percentage growth. White Plains led the group with a 9.5% increase to $50.58 million. Yonkers followed with a 5.2% increase and Mount Vernon recorded a 5.1% increase. Yonkers reported the largest total collections, reaching $98.93 million, while Mount Vernon collected $22.25 million.

The comptroller’s report identified inflation, consumer spending, and federal policies as factors affecting collections. The average monthly inflation rate for the first nine months of 2026 was 3.4%, up from 2.7% in the same period in 2025. Inflation peaked at 4.2% in May before declining to 3.7% by September. Higher federal tariffs and increased fuel prices also contributed to revenue changes.

Statewide sales tax collections totaled $19.6 billion during the first nine months of 2026, an increase of approximately $1.4 billion over the previous year. The report notes that growth accelerated statewide, rising from 5.1% in the first quarter to 9.2% in the third quarter. Collections increased in all 10 economic development regions, with growth rates ranging from 5.6% in the North Country to 8.5% in New York City.

The report does not provide a specific reason for New Rochelle’s slower growth relative to the state average. It notes that year-over-year changes can be affected by technical adjustments, including corrections to earlier reporting periods and late tax filings. The comptroller’s office suggests that annual figures are generally a better measure of underlying sales tax performance than quarterly data.