Corporation taxes are generally very low in NYS. Most small businesses usually fall under the Fixed Dollar Minimum tax rate:
For example, a Corporation with $250,000.00 in receipts pays a flat seventy five bucks in tax under fixed min. tax rates.
Current 2012 tax rates in NYS)
The business and investment capital base is the total investment and business capital allocated to New York State after deducting short-term and long-term liabilities attributable to assets. The current tax rate is .15%. (A new small business corporation may claim an exemption from the tax on this base for its first two tax years if it meets certain requirements.) The tax on capital is limited to $350,000 for qualified New York manufacturers, and $1 million for all other taxpayers.
The minimum taxable income (MTI) base equals entire net income allocated to New York State plus certain federal items of tax preference and adjustments allocated to New York. Taxpayers are allowed to deduct an alternative net operating loss against this base. The current tax rate is 1.5%.
For tax years beginning on or after January 1, 2012, and before January 1, 2015, the MTI tax rate for eligible qualified New York manufacturers is .75%.
The fixed dollar minimum (FDM) tax is determined by the corporation's New York State receipts. The current amounts of the FDM tax are as follows:
For a corporation with New York State receipts of: Tax
Not more than $100,000 $25*
More than $100,000 but not over $250,000 $75*
More than $250,000 but not over $500,000 $175*
More than $500,000 but not over $1,000,000 $500
More than $1,000,000 but not over $5,000,000 $1,500
More than $5,000,000 but not over $25,000,000 $3,500
Over $25,000,000 $5,000
There are higher "Corp Tax" rates, but with deductions, and tax credits, the actual tax paid is frequently at a much lower rate:
A general business corporation that is subject to tax under Article 9-A is every corporation except:
a banking corporation (Article 32);
an insurance corporation (including certain for-profit HMOs) (Article 33);
a transportation and transmission corporation (other than aviation corporations, corporations principally engaged in transportation, transmission, or distribution of gas, electricity, or steam (TTD corporations), and non-electing railroad and trucking corporations) (Article 9);
a farmer's cooperative or an agricultural cooperative (Article 9);
a nonstock or not-for-profit corporation, no part of whose net earnings inures to the benefit of any officer, director, or member;
a continuing section 186 taxpayer (Article 9).
The entire net income (ENI) base equals federal taxable income allocated to New York State with certain modifications for items of income and deduction that New York treats differently. The current tax rates for ENI are as follows:
Tax base Tax rate
ENI base for general business taxpayers 7.1%
ENI base for qualified small business taxpayers:
ENI base of $290,000 or less
ENI base of more than $290,000 but not more than $390,000 6.5%
$18,850
plus 7.1% of the amount over $290,000
plus 4.35% of the amount over $350,000
For tax years beginning on or after January 31, 2007
ENI base for qualified New York manufacturers 6.5%
For tax years beginning on or after January 1, 2012, and before January 1, 2015, ENI base for eligible qualified New York manufacturers 3.25%