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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).

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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.

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.

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Competitive corporate tax rates

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

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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.

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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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