New York Corporation Taxes (2026)
New York corporation taxes depend first on whether the corporation is taxed as a New York C corporation or a New York S corporation. Under Article 9-A, a New York C corporation generally pays tax on the business income base plus a fixed dollar minimum tax based on New York receipts. A New York S corporation generally does not pay the business income base tax, but it still files a New York S corporation return and generally owes the fixed dollar minimum tax based on New York receipts.
Quick Comparison
| Topic | New York C corporation | New York S corporation |
|---|---|---|
| State business income tax | Generally 6.5% of the business income base | Generally none on the business income base |
| Higher-rate threshold | 7.25% if business income base exceeds $5,000,000 | Not the main rule for NY S corps |
| Fixed dollar minimum tax | $25 to $200,000 based on New York receipts | $25 to $4,500 based on New York receipts |
| State return | Form CT-3 | Form CT-3-S, after a valid NY S election |
| Calendar-year due date | April 15 | March 15 |
| Owner-level tax | Dividends may be taxed again to shareholders | Pass-through income taxed to shareholders on personal returns |
New York C Corporations
New York C corporations generally pay Article 9-A franchise tax. The Department of Taxation and Finance's current guidance describes a 6.5% business-income-base rate for general business taxpayers, and a 7.25% rate when the business income base exceeds $5,000,000. On top of that, C corporations owe a fixed dollar minimum tax based on New York receipts, with brackets ranging from $25 up to $200,000.
For calendar-year filers, the main New York C corporation return is due on April 15. If the corporation operates in the Metropolitan Commuter Transportation District, an additional MTA surcharge may also apply.
This means a New York C corporation can face both entity-level state tax and shareholder-level tax when earnings are later distributed as dividends.
New York S Corporations
New York does recognize S corporations, but the state election is not automatic. A federal S corporation must generally file Form CT-6 and receive New York approval before filing Form CT-3-S as a New York S corporation.
Once the New York S election is in place, the corporation generally does not pay the Article 9-A business-income-base tax that applies to C corporations. Instead, the corporation generally pays the fixed dollar minimum tax based on New York receipts. For New York S corporations, that minimum tax generally ranges from $25 to $4,500.
The pass-through income is then reported by shareholders on their own returns. For calendar-year filers, the New York S corporation return is generally due on March 15.
Recurring New York Compliance Costs
The tax return is only part of the recurring corporation compliance picture.
New York business corporations also file a Biennial Statement with the Department of State every two years. The filing fee is $9. That is not the same thing as the corporation tax return, and it is not an annual report.
So a practical New York corporation checklist usually includes:
- New York corporation tax return each year
- Any required estimated tax payments and MTA surcharge filings
- Biennial Statement with the Department of State every two years
- Separate federal returns and elections where applicable
How This Compares With a New York LLC
A New York LLC is different. LLCs generally do not pay the Article 9-A corporation franchise tax. Instead, New York LLC owners typically deal with:
- Pass-through taxation at the owner level
- The $9 Biennial Statement every two years
- Form IT-204-LL annual filing fee when applicable, based on prior-year New York source gross income
That means the right comparison is not simply "corporation tax versus no tax." It is usually:
- C corporation: possible entity-level tax plus shareholder tax
- S corporation: fixed dollar minimum tax plus shareholder tax
- LLC: no corporation franchise tax, but separate LLC filing-fee rules may apply
Key Takeaways
For New York corporations, the most important question is whether you are taxed as a New York C corporation or a New York S corporation. C corporations generally pay Article 9-A tax on the business income base plus a fixed dollar minimum tax. New York S corporations generally pay the fixed dollar minimum tax and pass income through to shareholders.
Before you choose a corporation over an LLC, verify:
- Whether you need a separate New York S election
- Which fixed dollar minimum bracket your New York receipts place you in
- Whether an MTA surcharge may apply
- Whether the two-year $9 Biennial Statement fits into your compliance calendar
For current rates and filing instructions, use the New York Department of Taxation and Finance corporation-tax pages and the current Form CT-3 / CT-3-S instructions.