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Banking Corporation Tax


City Finance, Department of

Effective in 2015, the Banking Corporation Tax only applies to federal S-corporations and qualified subsidiaries. It applies to S-corporations authorized to do a banking business in New York City, or S-corporations owned by a bank or its holding company and engaged in a business a bank might conduct or a related business.


The following types of S-corporations are exempt from banking corporation tax: 

  • Trust companies wherein 20 or more savings banks that are organized under the laws of New York own all capital stock; 
  • S-Corporations that are subject to the General Corporation Tax;
  • S-Corporations that are subject to tax as insurance companies under Article 33 of the New York State Tax Law, other than savings and insurance banks.

The banking corporation tax rate is the largest of the following four options:

  • 9% of the entire net income allocated to the City;
  • A tax of 0.1 of a mill for every dollar of taxable assets allocated to New York City, except that certain corporations with net worth ratios of less than 5% whose taxable assets are composed of 33% or more of mortgages will be subject to a lower rate, and corporations holding net worth certificates under certain provisions of the Fair National Housing Act may not be subject to taxable asset basis;
  • 3% of alternative entire net income allocated to the City;
  • $125 minimum tax.

NYC Department of Finance (DOF)

Banking Corporation Tax Unit

345 Adams Street, 5th Floor

Brooklyn NY 11201

For further assistance, please call 311 and ask for: Banking Corporation Tax

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