Article 9-A—Franchise tax on general business corporations

Information on this page relates to a tax year that began on or after January 1, 2024, and before January 1, 2025.

You must file and pay the franchise tax on general business corporations if you are:

a domestic corporation (incorporated in New York State); or
a foreign corporation (incorporated outside New York State) that does business, employs capital, owns or leases property, maintains an office, or derives receipts from activity, in New York State; or
a foreign corporation that is a general partner in a partnership that does business, employs capital, owns or leases property, maintains an office, or derives receipts from activity, in New York State; or
a foreign corporation that is a limited partner in a partnership that does business, employs capital, owns or leases property, maintains an office, or derives receipts from activity, in New York State and you are engaged directly or indirectly, in the participation or in the domination or control of all or any portion of the business activities or affairs of the partnership.

When considering the last 2 bullets above, a limited liability company or limited liability partnership that is treated as a partnership for federal income tax purposes will be treated as a partnership for New York State tax purposes. Corporations engaged in a unitary business with other corporations should see Form CT-3-A-I, Table of contents, and go to “Who must file a combined return” for information concerning the combined return filing requirements.

Information

Calculating the tax

Highest tax based on three bases, in addition to the metropolitan transportation business tax (MTA surcharge), if applicable.

Tax credits

You may qualify to claim certain tax credits to reduce your New York State tax liability.

Paying the mandatory first installment and estimated tax

You must file and pay a mandatory first installment (MFI) of tax and the MTA surcharge, if applicable, for the upcoming tax year on Form CT-300, Mandatory First Installment (MFI) of Estimated Tax for Corporations, if your tax after credits for the second preceding tax year exceeds $1,000.

Also, you must file and pay estimated tax and MTA surcharge, if applicable, on Form CT-400, Estimated Tax for Corporations, and make quarterly payments of all estimated tax due if your corporation reasonably expects to owe more than $1,000 in franchise tax after credits.

Most general business corporations are mandated to e-file the estimated tax.

Use Corporation Tax Web File to submit Forms CT-300 and CT-400. You will need to first create an Online Services account, or
Use tax preparation approved software to submit Forms CT-300 or CT-400. or
File paper Form CT-400.

When to file your tax return

When to file your tax return
Type of filer	Due date
Calendar year	On or before April 15
Fiscal year	Within 3 ½ months after end of reporting period

If your due date falls on a Saturday, Sunday, or legal holiday, you may file your return on or before the next business day.

How to file and pay

Most general business corporations are mandated to e-file returns.
Most general business corporations file Form CT-3, General Business Corporation Franchise Tax Return.
General business corporations that file on a combined basis with related corporations file Form CT-3-A, General Business Corporation Combined Franchise Tax Return.
If you do business in the Metropolitan Commuter Transportation District (MCTD), you may be subject to the MTA surcharge, and must also file Form CT-3-M, General Business Corporation MTA Surcharge Return.

If you cannot meet the filing deadline

If you cannot meet the filing deadline, you may request a six-month extension of time by filing Form CT-5, Request for Six-Month Extension to File, and paying your properly estimated franchise tax and MTA surcharge on or before the due date of the return. Most general business corporations are mandated to e-file the extension.

Use Corporation Tax Web File to submit Form CT-5. You will need to first create an Online Services account, or
Use tax preparation approved software to submit Form CT-5.

For more information see:

Corporation tax forms and instructions (current year) or (prior years and periods)
Corporation Tax Memos (TSB-Ms)
Corporation Tax Advisory Opinions

Updated: December 6, 2024