Unincorporated Business Tax (UBT)

The Unincorporated Business Tax (UBT) is for some businesses in New York City.

These businesses can be:

• Trades
• Professions
• Some jobs

They can be run by:

• People
• Partnerships
• Limited liability companies
• Fiduciaries
• Associations
• Estates
• Trusts

The business can be active or closing down.

If you have two or more unincorporated businesses, they are treated as one for this tax.

The tax rate is 4 percent for taxable income in New York City.

Some people and businesses do not have to pay this tax:

• Employees doing services
• People or entities, other than dealers, who buy, hold and sell property for their own account (like someone who owns and rents a two-family house)
• Owners, lessees or fiduciaries who hold, lease or manage real property for their own account
• Entities mainly involved in qualifying investment activities are partially exempt on the income
• Associations and publicly traded partnerships treated as corporations for federal income tax purposes and S corporations are subject to the General Corporation Tax