Dead last nationally for tax structure. Up to 14.7% combined in NYC. New York business owners cannot afford passive planning.
New York's worst-in-nation ranking means every dollar of tax planning has outsized impact. PTET election is non-negotiable.
PTET election available since 2021. Annual election by March 15. One of the most utilized PTET programs nationally.
The PTET election allows pass-through entities (S-Corps, partnerships, LLCs taxed as partnerships) to pay state income tax at the entity level rather than the individual level. This effectively converts the state tax payment into a business deduction that bypasses the $10,000 federal SALT deduction cap.
For New York business owners with significant state tax liability, this election can save thousands to tens of thousands in federal taxes annually.
Learn About SALT Planning →Without the election, your state taxes are limited to the $10,000 SALT deduction cap on your personal return. With the PTET election, the entity pays the tax and deducts it as a business expense with no cap. You receive a credit on your state return to avoid double taxation.
Beyond income tax, New York business owners need to account for these additional tax obligations and structures.
These state-level incentives can meaningfully reduce your tax liability when properly claimed.
R&D tax credit
Excelsior Jobs Program
START-UP NY (tax-free zones near universities)
Film and TV production credits (25-30%)
Investment Tax Credit (5%)
Empire State Digital Gaming Media Production Credit
Opportunity Zones
Based on New York's tax profile, these are the strategies with the highest impact for business owners.
New York offers a Pass-Through Entity Tax (PTET) election, allowing business owners to deduct state taxes at the entity level and work around the $10K State and Local Tax (SALT) cap.
Learn more →Multi-entity structures can split income across favorable tax brackets and jurisdictions, reducing your effective rate.
Learn more →High earners in high-tax states can shelter $200K+ annually through properly designed defined benefit retirement plans.
Learn more →Proper S-Corp salary vs. distribution splits can save five figures annually on self-employment and state taxes.
Learn more →If you own commercial real estate or rental property, accelerated depreciation can generate massive year-one deductions.
Learn more →We work with New York business owners across these industries, each with unique tax planning opportunities.
New York has a progressive income tax structure with a top marginal rate of 10.9%. Top rate of 10.9% on income over $25M. NYC residents face additional 3.876% city tax. Effective combined rate can exceed 14.7%. Effective planning can significantly reduce your actual tax burden.
Yes. PTET election available since 2021. Annual election by March 15. One of the most utilized PTET programs nationally. The PTET election is a powerful workaround for the $10,000 federal SALT deduction cap, allowing the business itself to pay and deduct state taxes.
In a high-tax state like New York, the most impactful strategies include the PTET election, entity restructuring, defined benefit retirement plans, cost segregation for real estate, and careful income timing. Most business owners are leaving $50K-$200K+ on the table.
New York offers several valuable credits and incentives: R&D tax credit, Excelsior Jobs Program, START-UP NY (tax-free zones near universities), and more. The state R&D credit is particularly valuable for businesses investing in innovation. Many of these go unclaimed because business owners don't know they qualify.
Our Tax Intelligence Framework engagement starts with a free assessment to identify your specific opportunities. Implementation pricing depends on complexity, but our clients typically see 5-10x return on their investment. A New York business owner doing $1M+ in revenue commonly saves $50K-$200K+ in the first year alone.
Get a free assessment and we'll identify the state-specific opportunities hiding in your numbers.
Tell us about your business and we'll identify every savings opportunity available to you.