New York, NY Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Effective date
- Tax years beginning January 1, 2015
- GCT applies to
- S-corps and qualified S subsidiaries only
- All other corporations file
- Corporate Tax of 2015 (Subchapter 3-A)
- Governing law
- Administrative Code § 11-602.1
- Enforcing agency
- NYC Department of Finance
Summary
New York City taxes S-corporations and their qualified subsidiaries under the General Corporation Tax, while every other corporation pays the Corporate Tax of 2015 instead, per Administrative Code § 11-602.1.
For taxable years beginning on or after January first, two thousand fifteen, the tax imposed under this subchapter shall only apply to a corporation that (a) has an election in effect under subsection (a) of section thirteen hundred sixty-two of the internal revenue code of 1986, as amended, or (b) is a qualified subchapter S subsidiary within the meaning of paragraph three of subsection (b) of section thirteen hundred sixty-one of the internal revenue code of 1986, as amended.
Full Breakdown
Since tax years beginning January 1, 2015, NYC's General Corporation Tax under Administrative Code Subchapter 2 applies only to corporations with a federal S-election in effect under Internal Revenue Code § 1362(a), or their qualified subchapter S subsidiaries. Every other domestic or foreign corporation doing business, employing capital, or owning or leasing property in the city instead files under Subchapter 3-A, the Corporate Tax of 2015 (mirrored at Admin Code § 11-651). The Department of Finance uses this federal tax-election status, not company size, revenue, or industry, to sort each filer into the correct subchapter each year.
Violations & Fines
Filing under the wrong subchapter, or failing to file at all, exposes a corporation to Department of Finance assessment of the correct tax plus penalties and interest.
Frequently Asked Questions
Which NYC business tax applies to my corporation?
Does the classification depend on company size or industry?
Sources & Official References
Other rules in New York
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