Taxation in New York

Updated on Thursday 15th November 2018

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Limited liability companies and partnerships established in New York are subject to the filing fee calculated on the New York source income for the preceding tax year. S and C corporations in New York must pay the franchise tax which is calculated with the help of three tax bases. Our company formation specialists in USA can provide in-depth information about the tax structure for companies in New York and about the ways in which a foreigner can start a business in USA.
 

How is the corporation franchise tax calculated in New York?

 
The highest of the following tax bases is applicable to traditional corporations in New York:
 
  • a fixed dollar minimum or the FDM tax which is based on the receipts of a corporation in New York;
  • the tax on the business capital base at a rate of 0.1% and a lower rate of 0.85% for qualified manufacturers in New York;
  • the business income base tax set at a standard rate of 6.5%;
  • a lower business income base tax of 5.5% applicable for qualified emerging technology companies in New York.
     
S corporations in New York are subject to a franchise tax based on FDM, but for a proper understanding of the entire tax regime for businesses in this state, you may address to our team of advisors. Also, you can read the general guide to company incorporation in New York and find out the main requirements for setting up an enterprise in this state.
 

What is the sales tax rate in New York?

 
The standard sales tax in New York is set at a 4% rate with the mention that the provinces in this state can add their own sales tax rates, the highest of all being at a rate of 8.875% in Queens, Richmond, Kings, Bronx, and New York.
 

What is the New York property tax rate?

 
The property tax rate is applicable depending on the value of the property and it ranges from less than 1% to 3.5%. It is good to know that New York city has the lower property tax rate of 0.84%.
 

Other facts about the taxes in New York

 
The following table shows how the partnerships in New York are subject to the filing fee imposed on the gross income:
 

Gross income 
Filing fee
Up to $1,000,000 $500
Between $1,000,000 and $5,000,000 $1,500
Between $5,000,000 and $25,000,000 $3,000
More than $25,000,000 $4,500

If you would like to open a company in USA and particularly in New York, we suggest you observe the taxation regime for each business structure in this state. Our team of company incorporation agents in USA are at your service with complete support and assistance in this matter and can also handle the registration process of your firm, so please feel free to contact us soon.