For tax years beginning on or after January 1, 2015, a new corporate tax applies to corporations and banks, other than federal S-corporations, that do business in New York City. Starting in 2022, corporations that derive receipts of $1 million or more are also subject to tax. The new tax is being referred to as the Business Corporation Tax.
For tax years beginning on or after January 1, 2022, the Administrative Code now provides that corporations deriving receipts of $1 million or more from New York City sources will be subject to the Business Corporation Tax. A corporation with less than $1 million, but at least $10,000 of receipts from New York City sources, will also be subject to the Business Corporation Tax if the corporation is part of a unitary group that, in the aggregate, derives receipts from New York City sources of $1 million or more. These threshold amounts may be adjusted annually to reflect changes in the Consumer Price Index.
Additionally, the existing economic nexus provisions for credit card issuers have been amended and expanded for 2022. Please see Finance Memorandum 22-3 and Administrative Code Section 11-653(1) for more on these changes.
S-corporations are exempt from the Business Corporate Tax, but they are still subject to the General Corporation Tax or Banking Corporation Tax
The tax applies to business income, however, business capital and gross receipts are alternative minimum tax bases
Business Income Base Tax Rates
Type of Business | Rate in Tax Year 2015 and thereafter |
Qualified manufacturing corporations | 4.425%-8.85% |
Small businesses |
6.5% - 8.85% |
Financial corporations |
9% |
Remaining taxpayers |
8.85% |
Type of Business | Rate in Tax Year 2015 and thereafter |
Cooperative housing corporations |
.04% |
All other corporations |
.15% |
Modification: The portion of total business capital directly attributable to stock in a subsidiary that is taxable as a utility within the meaning of the New York City Utility Tax or would have been taxable as an insurance corporation under the former New York City Insurance Corporation Tax | .075% |
|
If New York City Receipts are: | Fixed Dollar Minimum Tax is: |
Not more than $100,000 | $25 |
More than $100,000 but not over $250,000 | $75 |
More than $250,000 but not over $500,000 | $175 |
More than $500,000 but not over $ 1 million | $500 |
More than $1 million but not over $5 million | $1,500 |
More than $5 million but not over $25 million | $3,500 |
More than $25 million but not over $50 million | $5,000 |
More than $50 million but not over $100 million | $10,000 |
More than $100 million but not over $250 million | $20,000 |
More than $250 million but not over $500 million |
$50,000 |
More than $500 million but not over $1 billion |
$100,000 |
More than $1 billion |
$200,000 |
For tax years beginning before January 1, 2016:
If the requirement for filing a Declaration of Estimated Tax is first met… |
The Due Date for Filing is… |
Before June 1 | June 15 |
June 1, up to August 31 |
September 15 |
September 1, up to November 30 | December 15 |
Instead of the December 15 Declaration, a completed tax report, with payment of balance due, if any, may be filed by February 15 of the following year. |