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Unincorporated Business Tax (UBT)


City Finance, Department of

Unincorporated Businesses include: trades, professions, and certain occupations of an individual, partnership, limited liability company, fiduciary, association, estate or trust. The business can be active or in the process of being liquidated.

If you have two or more Unincorporated Businesses, all are treated as one for the purpose of this tax.

Tax Rates A 4% tax rate is charged for taxable income allocated to New York City.

Who is Exempt from this Tax?
  • Performing services as an employee is not subject to UBT.
  • A person or entity, other than a dealer, who is only engaged in the purchase, holding, and sale of property for their own personal account (e.g. a person who owns and rents a two-family house); and
  • An owner, lessee, or fiduciary who is engaged in holding, leasing, or managing real property for their own account.
  • Entities engaged primarily with qualifying investment activities are partially exempt from UBT on the income.
  • Associations and publicly traded partnerships treated as corporations for Federal income tax purposes; and S Corps. are subject to the General Corporation Tax.

NYC Department of Finance (DOF)

Unincorporated Business Tax Unit
345 Adams Street, 10th Floor
Brooklyn, NY 11201

For further assistance, please call 311 and ask for: Unincorporated Business Tax

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