Two numbers set New York City apart for a cleaning business. The minimum wage is $17.00 an hour, the state's higher tier, which also covers Nassau, Suffolk, and Westchester. And the combined state and local sales tax rate in the city is 8.875% under the state's Publication 718.
In the city, the wage floor and the sales tax rate are the two numbers that drive what a cleaning job costs and what you bill. This page covers both, plus one reporting rule about contract length.
The $17.00 minimum wage tier
New York State's minimum wage is $17.00 an hour in New York City, Nassau, Suffolk, and Westchester, and $16.00 in the rest of the state, effective January 1, 2026. The Department of Labor states the general rate will not change on January 1, 2027.
Source: New York State Senate, NY Labor Law 652 (revision May 12, 2023)
Source: NYS Department of Labor, Minimum Wage
The 8.875% combined sales tax rate
Publication 718 (2/25) puts the combined state and local sales tax rate in New York City at 8 7/8%, effective March 1, 2025. Fractions in a tax rate aren't my favorite thing to read, and I'm the guy who enjoys this stuff, so here it is as a decimal: 8.875%. The state's share of that is 4%. Residential and commercial cleaning are both taxable in New York State, with exceptions covered on my New York sales tax page.
Source: NYS Department of Taxation and Finance, Publication 718, New York State Sales and Use Tax Rates by Jurisdiction (2/25, effective March 1, 2025)
Contract length doesn't change the reporting
Before June 1, 1990, interior cleaning on contracts of 30 days or more was excluded, and the 1990 amendment eliminated that exclusion. For New York City, the department's Notice N-12-3 (March 2012) put short and long cleaning contracts on one reporting line, regardless of contract length.
Source: NYS Department of Taxation and Finance, Notice N-12-3, New York City reporting of interior cleaning services (March 2012)
Source: NYS Department of Taxation and Finance, TSB-M-91(1)S, Summary of 1990 Sales Tax Amendments (May 15, 1991; marked historical)
What this means for your books
For a city job, labor gets priced at no less than $17.00 an hour, and sales tax collected goes to a liability account so it never inflates revenue. If you work both in the city and outside the $17.00 region, I keep labor by job so the difference shows. The job profitability estimator runs that math on a single job. Payroll registration and the employee test work the same across the state; they're on my New York page.
I'm a bookkeeper, not a CPA or an Enrolled Agent. I keep the city's numbers straight in the books; how your sales tax is reported is a question for your CPA.
Rules checked against the sources above as of October 20, 2026. Rates and rules change; confirm current figures with the agency or your CPA.