Free tool

New York contractor deposit calculator

Enter the job price and your deposit. See what to collect up front, what’s left when the job is done, and the New York rules to keep in mind.

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What kind of job?

Capital improvements (like a new roof, deck, or remodel) generally have no sales tax charged to the customer. The customer gives you Form ST-124. You still pay tax on materials you buy. NY Tax Dept: capital improvements

Deposit
%

Deposit to get started

$1,500.00

30% of the job total

Job price
$5,000.00
Sales tax
None
Job total
$5,000.00
Deposit
− $1,500.00
Balance on completion
$3,500.00

Text for your customer

Deposit to get started: $1,500.00 (30% of the job). Balance on completion: $3,500.00. Job total: $5,000.00.

Nothing you type is saved or sent anywhere. The deposit is figured on the total including tax, rounded to the cent.

New York deposit rules to know

General information, not legal or tax advice. Rules change and depend on the type of work, so check the official source or a professional for your situation.

New York deposit & tax questions

Do I charge sales tax on home improvement work in New York?

It depends on the job. Capital improvements, work that permanently adds to or improves the property, generally have no sales tax charged to the customer. Repairs and maintenance, like fixing a step or replacing a thermostat, are taxable. Either way, you pay sales tax on the materials you buy. NY Tax Dept: capital improvements

What is Form ST-124?

It’s the Certificate of Capital Improvement. The property owner fills it out and gives it to you, and you keep it on file to show why you didn’t charge sales tax. You aren’t required to accept it. Form ST-124

What do I have to do with a deposit in New York?

For home improvement work, money you receive before the job is substantially complete must go into an escrow account at a New York bank within five business days, or you must give the customer a bond or contract of indemnity instead. NY Attorney General: home improvement

Does a home improvement contract have to be in writing in New York?

Yes. The New York Attorney General says home improvement contracts must be in writing. NY Attorney General: home improvement

Send it as a real deposit invoice

Put the deposit right on your quote. When the customer accepts, Lead2Project can send the deposit request automatically, and they pay by card on the spot.

Start freeHow deposits work →

How much deposit should a contractor charge?

There’s no single right number. A deposit has two jobs: cover what you have to spend before the work starts, and show the customer is committed. Start from those two and the number usually picks itself.

What to think about

  • Materials you buy up front. If you’re ordering shingles, fixtures or custom pieces before day one, the deposit should cover them. You shouldn’t be financing a customer’s job.
  • Special orders. Anything made to measure or non-returnable is money you can’t get back if the customer cancels.
  • Job size and length. On a short repair you might ask for a small deposit or none. On a long job, consider progress payments instead of one big deposit.
  • The customer. A repeat customer you trust might get lighter terms than a first-time one.
  • The law and taxes where you work. Some states limit deposits or control where the money goes, and sales tax depends on the state and the type of job. Pick your state in the calculator to see its rules.

Put it on the quote, not in a text later

The easiest deposit to collect is one the customer saw before they said yes. Show the deposit and the balance right on the quote, and send the deposit request as soon as they accept, while the job is fresh. Use the calculator above, copy the text, and paste it into your quote or message.