Talk:NY - State City Taxes
From TaxAlmanac
NY - State City Taxes
Is the income taxed twice by New York State and City? From the tax forms it appears both NY State and City use the same 3 factor formula. If a company is located in NY city are they subject to double tax?
New York taxes business income at both the state and city level. If a business is located in New York City then an additional city tax is figured on the appropriate city forms. The city tax is different than the state tax and they are not dependent on each other.
For an individual return, an unincorporated New York City business would report its income on Form NYC-202 and the city tax is figured on this form based on business allocation percentages from Form NYC-202, Schedule C, Part 3. The same business income is also taxed on the New York form IT-201 and the tax calculated on that form does not include the tax from New York City. The state tax does not include a factor method while the city method does for individual returns.
For a corporate return, the New York City corporation would report its income on NYC-3L or NYC-4S and the city tax would be figured on that form based on business allocation percentages calculated on Form NYC-3L, Schedule H. The same corporate income is also taxed on Form CT-3 or CT-4 and the tax for the state does not include the tax from New York City. For corporations, a factor method is used to allocate business income at both the state and city levels.
