The State of New York sits in the northeast of the USA. Lake Erie and Lake Ontario form natural borders with its Canadian neighbors, and to the north there is also a land border. New York counts as one of the Mid-Atlantic states. Its area of just over 140,000 km² includes the Hudson River Valley and Long Island in the southeast. The island, 200 kilometers long and 20 to 30 kilometers wide, is home to large parts of New York City, by far the most populous city in the United States. With more than 20 million residents, New York ranks third among US states by population. The capital is Albany.
Easy access to the North American market, first-class infrastructure and extensive research and development: New York gives a company plenty of reasons to set up here. The lowest taxes in decades are, of course, another big draw. On top of that come further, sometimes creative incentives for entrepreneurs. The whole package means the economy knows only one direction: up. The Empire State attracts companies from all over the world and does its best to help them grow and thrive. And that unmistakable New York way of life comes as a bonus.
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The future is now
One sign of the state's current success: more Fortune 500 companies are based in New York today than ever before.
In New York, the future has already begun. It is being shaped by established companies that put their talent and resources to smart, innovative use, and by entrepreneurs who want to do business in this dynamic environment. New York, by the way, is also one of the 10 most popular US states for foreign direct investment.
Taxes are lower than they have been in a long time, private-sector employment has hit a record high, and the state is investing 150 billion dollars in infrastructure. It is the largest infrastructure program in the entire country, designed to strengthen New York State as a place to do business and make it even more attractive.
A diverse talent pool & outstanding education
A major factor in the state's success is its diverse, talented workforce. It is trained at excellent educational institutions and benefits from the state's investment in the workforce of tomorrow.
In the Empire State, first-class public and private universities exist side by side. New York is the only US state with two elite universities, and it is home to the largest public university system. The first tuition-free college program is here too. Participants in the Excelsior Scholarship commit to staying in New York after graduating, so the state wins skilled talent for local businesses.
Education partnerships and collaboration with businesses carry real weight. Companies benefit from the universities' research and development facilities, while students gain hands-on experience and build connections at companies.
New York invests heavily in workforce training and in programs that prepare people for an innovative economy. This ensures local companies can draw on a skilled workforce.
Investing in sustainable energy
Upgrades to infrastructure also follow sustainable, innovative concepts meant to support economic success. New York's governor champions the growth of the so-called green economy. The largest offshore wind agreement in the country was signed back in 2019. By 2035, wind is set to supply 9,000 megawatts. Investments in renewable energy and energy storage have already been made or are on the way. The New NY Broadband Program aims to give every New Yorker access to high-speed broadband.
World-class innovation and major investment in the building blocks of tomorrow will keep New York shining in a future that has already begun.
Income tax in New York
New York levies income tax of 4 to 10.9%, depending on income (the top rate applies to income above $25 million). On top of that, you pay federal income tax.
Corporate tax in New York
New York levies corporate tax of 6.5%; business income above $5 million is taxed at 7.25%. On top of that, you pay federal corporate tax.
Sales tax in New York
The USA has no VAT on the European model. Instead, states, counties and municipalities levy a local sales tax on the sale of goods (but not services).
Sales tax rate in New York
New York's state sales tax is 4%. Cities and counties add an average of 4.52%, so the combined rate averages 8.52%.
New York nexus laws & sales tax
Learn more about economic nexus laws and sales tax.
Effective date
Effective "immediately after the Wayfair decision of June 21, 2018"; however, no clear effective date is currently stated
Included transactions:
Cumulative gross receipts from sales of tangible personal property delivered into the state (SaaS counts as TPP); services are not included in the threshold
Treatment of exempt sales:
Exempt sales are included in the threshold; exempt services, however, are excluded
Trigger:
Sales and transaction volume
Sales/transaction threshold:
$500,000 and 100 transactions
Evaluation period:
The threshold applies to the previous four sales tax quarters, as defined by the state
Additional information:
- Registration requirements: New York requires a remote business to register to collect and remit New York sales tax within 30 days of crossing the economic nexus threshold, and to start collecting tax 20 days after that. For more information, see the Nexus FAQs.
- Requirements for remote sellers
New York marketplace sellers & sales tax
Learn more about registration requirements for marketplace sellers
Marketplace facilitator enforcement date:
June 1, 2019
Economic nexus threshold:
More than $500,000 in gross receipts and more than 100 sales of tangible personal property in New York in the preceding four sales tax quarters. Remote sellers should include sales made through a marketplace when calculating the threshold. Marketplace facilitators include all sales made through the marketplace when calculating the threshold.
Registration requirements:
- Remote multichannel sellers: Once you cross the economic nexus threshold, you must register with the New York Department of Taxation and Finance and collect New York sales tax on sales not taxed by a marketplace facilitator.
- Remote marketplace sellers: You must register once you cross the economic nexus threshold. Contact the New York Department of Taxation and Finance for more information.
- In-state multichannel sellers: You must register with the Department of Taxation and Finance and collect tax on sales not taxed by a marketplace facilitator.
- In-state marketplace sellers: You must register. Contact the New York Department of Taxation and Finance for more information.
- Learn more here.
For an overview of every state, see our directory US states at a glance. Our guide Which US state is best for your company? helps you pick the right state, and the guide to forming a US company walks you through the process. And if you want to run your US LLC tax-free without a US permanent establishment, our sister site zerotax.llc is the place to go.
Our services for New York:
We guide your New York company all the way from choosing the legal structure to getting the EIN. You'll find the details under Company formation in New York, and we'll answer your questions in a consultation.