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Corporate taxes

Corporate tax collections

Corporations operating in New York State are taxed under different articles based upon business activity. The Article 9-A corporate franchise tax comprises the majority of corporate filers with nearly 320,000 taxpayers. Article 9 taxes are imposed on approximately 1,200 utility, telecommunications, and transportation companies. Article 33 taxes are imposed on approximately 1,300 insurance corporations operating in the state.

New York State collected almost $10 billion in these corporate taxes in fiscal year 2025 (April 2024–March 2025).

Tax year filing and data timing

The combination of filing extensions and fiscal-year filing periods results in a lag between when returns are filed and when complete tax year data are available.

Example: A fiscal year filer with a December 2024–November 2025 liability period would be required to file its return in March 2026. If the entity uses the full one-year extension, the 2024 return would not be submitted to the department until March 2027.

Extensions of time to file 

Article 9-A taxpayers are required to file tax returns by the 15th day of the 4th month following the close of the tax year (April 15th for calendar-year filers). In addition, filers may extend the statutory due date for up to one year through the use of one six-month extension and two additional three-month extensions.

Over half of the corporate franchise taxpayers file by the statutory deadline, but those entities make up less than 10% of the total tax. Meanwhile, more than 60% of the overall Article 9-A tax comes from the less than 2% of taxpayers that use either a nine-month or one-year extension.

Tax years: Calendar year vs. fiscal year

Corporate franchise taxpayers file either on a calendar year (January–December) or a fiscal year (the liability period begins in a month other than January). Over two-thirds of Article 9-A taxpayers use a calendar year, reporting over 70% of the total Article 9-A liability. 

Corporate franchise tax composition 

The number of corporate tax filers, and the associated liability, continues to grow since the corporate franchise tax was restructured in 2015.

Over 75% of the corporation franchise tax burden is carried by less than 0.25% of filers. Nearly 80% of corporate franchise taxpayers pay less than $1,000 in tax. 

Article 9-A filers are subject to the highest of three bases—business income base, business capital base, or the fixed dollar minimum tax based on New York receipts.

While more than two-thirds of Article 9-A filers pay on the fixed dollar minimum base, more than 90% of the tax comes from the income base.

Composition of Article 9-A taxpayers for tax year 2022
Tax base Number of taxpayers Percent of taxpayers Tax (in millions) Percent of total tax
Entire net income 72,723 22.1% 6,062.4 91.1%
Fixed dollar minimum 234,820 71.2% 83.3 1.3%
Capital 22,069 6.7% 510.0 7.7%
2022 Tax Year Total 329,612 100.0% 6,655.7 100.0%

Article 9-A New York receipts by type

The composition of receipts remains stable from year to year. Article 9-A taxpayers reported more than $28 trillion dollars across more than 50 different types of enumerated receipts, with more than $1.4 trillion of that amount sourced to New York State in 2022.

Competitive corporate tax rates

New York's top corporate franchise tax rate is one of the lowest rates in the Northeast.

Corporate income rates within New York

In addition to the Article 9-A corporate franchise tax, corporations may also be subject to the MTA Surcharge and the New York City Business Corporation Tax.

S corporations 

Over 460,000 S corporations are required to pay an entity-level franchise tax under Article 9-A, ranging from $19 to $4,500 depending on the type of business and the amount of New York receipts. Shareholders of New York S corporations report the flow-through income from these corporations on their personal income tax returns. The number of New York S corporations continues to grow annually.

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