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Department of Taxation and Finance

Transportation Network Company assessment

Effective June 29, 2017, the Tax Law imposes a state assessment on Transportation Network Companies (TNC).

Before a business can operate as a TNC, it must be licensed by the New York State Department of Motor Vehicles (DMV).

TNC assessment

The TNC assessment is a 4% assessment on the gross trip fare of every TNC prearranged trip that originates anywhere in New York State outside New York City and that terminates anywhere in New York State. A trip originates at the location the passenger is picked up and terminates at the location the last requesting passenger exits the vehicle.

Gross trip fare means the sum of the base fare charge, distance charge, and time charge for a complete TNC prearranged trip at the applicable rate charged by the TNC at the time the trip is arranged.

A Transportation Network Company is any person or entity that:

  • is licensed through the DMV, and
  • operates in New York State, exclusively through the use of a digital network to connect passengers with TNC drivers who provide TNC prearranged trips. 

A TNC driver is an individual who:

  • receives connections to potential passengers and related services from a TNC in exchange for payment of a fee to the TNC, and
  • uses a TNC vehicle to provide a TNC prearranged trip to a TNC passenger.

A TNC passenger (or passenger) is a person or persons who use a TNC’s digital network to connect with a TNC driver for a TNC prearranged trip between points chosen by such person or persons.

A TNC prearranged trip is the provision of transportation by a TNC driver to a passenger that:

  • is arranged through the use of the TNC’s digital network; and
  • begins when the TNC driver accepts a trip request, continues through the transport of the passenger, and ends when the last requesting passenger exits the vehicle. 

A digital network is a system or service offered or utilized by a TNC that enables TNC prearranged trips with TNC drivers. 

How to file returns and pay the assessment

Each TNC must file returns and pay the assessment online on a calendar-quarterly basis. To file and pay online, each TNC will need to:

  1. Create a Business Online Services account with the Tax Department (or log in if they already have an account).
  2. Select Other taxes under the Services menu.
  3. Select Transportation network company assessment from the drop-down menu.
  4. Follow the prompts to complete the return and pay the assessment.

Each return requires the TNC to provide:

  • a unique TNC license number, and
  • a total number of TNC prearranged trips, and
  • total gross fares for TNC prearranged trips, and
  • a total number of trips subject to the assessment, and
  • total gross trip fares on trips subject to the assessment, and
  • amount of assessment due in the quarter for which the return is filed. 

TNCs must file their returns and pay the balance due no later than 30 days after the close of the calendar-quarter. If the Commissioner deems it necessary, however, returns may be required for shorter periods, and upon such dates as the Commissioner may specify.  

Penalty and interest

TNCs that do not file their returns and pay the balance due by the due date are subject to penalty and interest. TNCs that file or pay late can compute their penalty and interest due using our Penalty and Interest Calculator.


Every TNC is required to keep:

  • records of every TNC prearranged trip, including records of all amounts paid, charged, or due on those trips, as well as records showing when those trips occurred, and where they originate and terminate;
  • true and complete copies, including electronic copies, of any records that the DMV or a state agency authorized to permit or regulate a TNC requires; and
  • any other records required by the Tax Department.

Applicability of sales tax 

Rideshare services that are provided by or through TNCs, and which are subject to the TNC assessment, are excluded from New York State and local sales taxes.  


  • TSB-M-17 (1)M, (1)S, New York State Assessment on Transportation Network Companies
  • For more information related to the licensing and registration of TNC’s, please visit the DMV website.