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Corporation tax

More money

New York State collected more than $8 billion in corporation taxes in 2021. This is an increase of $1.4 billion from 2020.

Corporation tax collections by year
Calendar year 2017 2018 2019 2020 2021
Corporation tax collections (in millions of dollars) $4,914.90 $5,191.50 $6,323.40 $6,577.50 $8,047.50

Effective tax reform

New York State’s corporate tax reform was implemented in 2015 to ease the compliance burden on businesses operating in the state. The number of corporations and tax liability has grown steadily since.

Liability for Article 9-A corporations: tax years 2015–2019
Tax liability year 2015 2016 2017 2018 2019 2020 (preliminary)
Number of taxpayers 281,374 284,605 293,302 302,909 311,233 308,465
Liability (in millions of dollars) $3,238.5 $2,836.5 $2,710.4 $4,037.5 $4,052.0 $3,496.8

Corporation franchise tax

The corporate tax burden is primarily carried by less than 1% of taxpayers. Their share of the total tax has risen from 65% to almost 74%. More than 80% of corporation taxpayers pay less than $1,000 in tax.

Article 9-A corporation franchise tax: share of taxpayer base
Tax year Tax amount Number of taxpayers Percent of total taxpayers Tax in millions  Percent of total tax
2015 less than or equal to $999 219,150 77.89% 33.4 1.03%
greater than or equal to $1 million 478 0.17% 2,152.3 66.46%
2016 less than or equal to $999 224,212 78.78% 37.6 1.33%
greater than or equal to $1 million 406 0.14% 1,869.5 65.91%
2017 less than or equal to $999 232,406 79.24% 37.1 1.37%
greater than or equal to $1 million 394 0.13% 1,757.8 64.86%
2018 less than or equal to $999 240,874 79.52% 37.7 0.93%
greater than or equal to $1 million 494 0.16% 2,965.1 73.44%
2019 less than or equal to $999 249,720 80.24% 38.8 0.96%
greater than or equal to $1 million 474 0.15% 2,988.5 73.75%
2020 (preliminary) less than or equal to $999 252,343 81.81% 34.8 1.00%
greater than or equal to $1 million 433 0.14% 2,446.1 69.95%

Insurance tax

Roughly 1,300 insurance taxpayers remit approximately $2 billion annually through the state’s insurance tax.

More corporate taxes

1,400 utility, telecommunications, and transportation companies pay $730 million annually under the state’s corporation tax.

Competitive tax rates

New York State has the 16th highest corporate tax rate in the country—and one of the lowest rates in the Northeast.

chart of top state corporate income tax rates for northeastern states as of January 1, 2023

Top state corporate income tax returns for northeastern states (as of January 1, 2023). From highest to lowest percentage: NJ, PA, MA, DE, VT, MD< MA, CT, NH, NY, RI

Top State Corporate Income Tax Rates and Brackets as of January 1, 2023
State Top Rate Bracket
New Jersey (e) 11.50% $1,000,000
Minnesota 9.80% $0
Illinois. (d) 9.50% $0
Alaska 9.40% $222,000
Pennsylvania 8.99% $0
Maine  8.93% $3,500,000
California 8.84% $0
Delaware (b) 8.70% $0
Vermont 8.50% $25,000
Iowa  8.40% $100,000
Maryland 8.25% $0
Washington, D.C. 8.25% $0
Massachusetts 8.00% $0
Wisconsin 7.90% $0
Oregon (b)  7.60% $1,000,000
Connecticut (a) 7.50% $0
Louisiana  7.50% $150,000
New Hampshire 7.50% $0
Nebraska 7.25% $100,000
New York 7.25% $5,000,000
Kansas 7.00% $50,000
Rhode Island 7.00% $0
Montana 6.75% $0
Alabama 6.50% $0
Tennessee (b) 6.50% $0
West Virginia 6.50% $0
Hawaii  6.40% $100,000
Michigan 6.00% $0
Virginia 6.00% $0
New Mexico  5.90% $500,000
Idaho 5.80% $0
Georgia (c) 5.75% $0
Florida 5.50% $0
Arkansas  5.30% $25,000
Kentucky 5.00% $0
Mississippi  5.00% $10,000
South Carolina 5.00% $0
Arizona 4.90% $0
Indiana 4.90% $0
Utah 4.85% $0
Colorado 4.55% $0
North Dakota 4.31% $50,000
Missouri 4.00% $0
Oklahoma 4.00% $0
North Carolina 2.50% $0
Nevada (b)
Ohio (b)
Texas (b)
Washington (b)
South Dakota None
Wyoming None
(a) Connecticut has historically charged a 10% surtax on a business’s tax liability if it has gross proceeds of $100 million or more, or if it files as part of a combined unitary group. This surtax expired on January 1. Legislators have extended the surtax in the past and will decide whether to do so again this session.
(b) Nevada, Ohio, Texas, and Washington do not have a corporate income tax but do have a gross receipts tax with rates not strictly comparable to corporate income tax rates. Delaware, Oregon, and Tennessee have gross receipts taxes in addition to corporate income taxes, as do several states like Pennsylvania, Virginia, and West Virginia, which permit gross receipts taxes at the local (but not state) level.
(c) Georgia’s corporate income tax rate will revert to 6% on January 1, 2026.
(d) Illinois’ rate includes two separate corporate income taxes, one at a 7% rate and one at a 2.5% rate. 
(e) In New Jersey, the rates indicated apply to a corporation’s entire net income rather than just income over the threshold. A temporary and retroactive surcharge is in effect from 2020 to 2023, bringing the rate to 11.5% for businesses with income over $1 million.
Note: In addition to regular income taxes, many states impose other taxes on corporations such as gross receipts taxes and capital stock taxes. Some states also impose an alternative minimum tax and special rates on financial institutions.
Sources: Tax Foundation; state tax statutes, forms, and instructions; Bloomberg Tax.

Economic development tax credits

The Tax Department administers more than $1.6 billion in tax credits across more than 60 economic development incentives, which help businesses grow, hire, and expand.

Transportation mobility tax

The metropolitan commuter transportation mobility tax (MCTMT) is imposed on certain businesses within the metropolitan commuter transportation district (MCTD) to fund critical transportation infrastructure in the downstate and New York City regions. Approximately 25,000 businesses pay more than $1.5 billion in tax. The number of taxpayers and payments declined in 2020 due to the COVID-19 pandemic, but showed signs of recovery in 2021.

Metropolitan commuter transportation mobility tax (MCTMT) due
Payroll range Rate Year Number of taxpayers Tax due (in millions of dollars) 

Greater than $312,500 and equal to or less than $375,000
0.11% 2019 3,184 $4.4
2020 2,903 $4.0
2021 3,133 $4.2
Greater than $375,000 and equal to or less than $437,500 0.23% 2019 2,418 $10.1
2020 2,258 $7.4
2021 2,483 $8.0
Greater than $437,500 0.34% 2019 20,267 $1,729.8
2020 19,002 $1,419.7
2021 20,641 $1,522.2

Updated: