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Article 9-A – Franchise tax on general business corporations

Information on this page relates to a tax year that began on or after January 1, 2016

You must file and pay the franchise tax on general business corporations if:

  • you are a domestic corporation (incorporated in New York State); or
  • you are a foreign corporation (incorporated outside New York State) that does business, employs capital, owns or leases property, maintains an office, or derives receipts from activity, in New York State; or
  • you are a foreign corporation that is a general partner in a partnership that does business, employs capital, owns or leases property, maintains and office, or derives receipts from activity, in New York State; or
  • you are a foreign corporation that is a limited partner in a partnership that does business, employs capital, owns or leases property, maintains an office, or derives receipts from activity, in New York State and you are engaged directly or indirectly, in the participation or in the domination or control of all or any portion of the business activities or affairs of the partnership.

When considering the last 2 bullets above, an LLC or LLP that is treated as a partnership for federal income tax purposes will be treated as a partnership for New York State tax purposes. Corporations engaged in a unitary business with another corporation(s) should see Form CT-3-A-I, page 4, “Who must file a combined return” for information concerning the combined return filing requirements.

Calculating the tax

Highest tax based on three bases   MTA surcharge
+ Metropolitan transportation business tax (MTA surcharge) if applicable

Tax credits

You may qualify to claim certain tax credits to reduce your New York State tax liability. 

Paying estimated tax

If your corporation reasonably expects to owe more than $1,000 in franchise tax after credits, you must file estimated tax forms (Form CT-400, Estimated Tax for Corporations) and make quarterly payments of all estimated tax due. Most general business corporations are mandated to e-file the estimated tax.

When to file your tax return 

Type of filer Due date
Calendar year On or before April 15
Fiscal year Within 3 ½ months after end of reporting period

If your due date falls on a Saturday, Sunday, or legal holiday, you may file your return on or before the next business day.

How to file and pay

If you cannot meet the filing deadline

If you cannot meet the filing deadline, you may request a six-month extension of time by filing Form CT-5, Request for Six-Month Extension to File, and paying your properly estimated franchise tax and MTA surcharge on or before the due date of the return.  Most general business corporations are mandated to e-file the extension.

For more information see:

Updated: