Buffalo businesses face New York State corporate franchise tax, Erie County sales tax collection duties, and Buffalo property tax classified into homestead and non-homestead classes under NY Real Property Tax Law Article 19.
New York taxes corporations under Tax Law Article 9-A (general corporations) and Article 22 for pass-through entity income. Erie County and NY combine for an 8.75% sales tax that retailers collect and remit. Buffalo property taxes use the homestead/non-homestead split allowed under RPTL Article 19, with non-homestead (commercial and large multifamily) typically carrying a higher tax rate per $1,000 assessed value than owner-occupied homestead. Buffalo also levies a small Sewer Authority charge and Buffalo Water Authority fees outside of general property tax. Special assessment districts exist for Downtown and Allentown business improvement.
Failing to collect sales tax, misclassifying property as homestead, or underreporting franchise tax to NY Department of Taxation and Finance leads to back taxes, interest, and penalties.
See how Buffalo's business tax classification rules stack up against other locations.
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