Article 9-A – Franchise tax on general business corporations
The information on this page should not be relied on for tax years that first begin on or after January 1, 2015 as corporate tax reform significantly altered the Article 9-A tax for such tax years.
You must file and pay the franchise tax on general business corporations if:
- you are a domestic corporation (incorporated in New York State); or
- you are a foreign corporation (incorporated outside New York State) or a foreign corporate partner (general or limited) that does business, employs capital, owns or leases property, or maintains an office in New York State.
Calculating the tax
|Highest tax based on four bases||Subsidiary capital tax||MTA surcharge|
|+||Subsidiary capital tax
(if you have subsidiaries)
|+||Metropolitan transportation business tax (MTA surcharge) if applicable|
You may qualify to claim certain tax credits to reduce your New York State tax liability.
Paying estimated tax
If your corporation reasonably expects to owe more than $1,000 in franchise tax after credits, you must file estimated tax forms (Form CT-400, Estimated Tax for Corporations) and make quarterly payments of all estimated tax due. Most general business corporations are mandated to e-file the estimated tax.
- Use Corporation Tax Web File to submit Form CT-400. You will need to first create an Online Services account.
- Use tax preparation approved software to submit Form CT-400.
- File paper Form CT-400.
When to file
|Type of filer||Due date|
|Calendar year||On or before March 15|
|Fiscal year||Within 2 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. See e-file and e-pay requirements for certain filers for details.
- Most general business corporations file either Form CT-4, General Business Corporation Franchise Tax Return Short Form; or 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. Corporations subject to the MTA surcharge must also file Form CT-3M/4M, General Business Corporation MTA Surcharge Return.
- If you are a foreign corporation, you may also be subject to a license fee or a maintenance fee.
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.
- Use tax preparation approved software to submit Form CT-5.
For more information see: