Restaurants and family businesses
Quarterly sales tax, payroll and tips, the city UBT or corporation tax, books months behind.
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About this serviceContact / City guides / New York
City guides · New York
New York: the city, its taxes and forming a company, on one page
The financial capital of the world, the busiest port on the East Coast, and home to more people of Chinese origin than any other U.S. city — from Manhattan’s Chinatown to Flushing and Sunset Park. New York taxes twice, at the state and at the city, but it is where capital, clients and talent meet. YCL has long served families, professionals, business owners and overseas companies across the five boroughs — we work alongside local professionals, and local small businesses can start with one service on us.
YCL’s CPAs are licensed in multiple states. Many New York families and businesses have trusted us with their taxes year after year — they build their lives here, and we walk with them, in English or Chinese, entirely online.
Local business sign-upOne free service: tax review · financial statements · rental books Personal taxesState 3.9%–10.9% + NYC 3.078%–3.876% · estate tax from $7.35M Business taxesNYC UBT 4% · corporations 6.5% state + 8.85% city · sales tax 8.875% Forming & keeping a companyLLC $200 · newspaper publication · biennial statement $9 Become a referral partnerInsurance · real estate · lending · law — referrals both ways What YCL can do for youFamily returns · business tax and books · cross-border · planning City and industriesWall Street · Columbia · NYU · 580,000 Chinese residents Common questionsA Chinese-speaking CPA? Form in Delaware instead?
Part 1 · Local businesses and partners
Local businesses and professionals in New York: sign up
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New York · Sign up
Part 2 · Taxes and companies
Taxes in New York and New York
Personal taxes
New York City residents pay income tax twice — to the state and to the city — and both tax capital gains as ordinary income. People who work in the city but live in New Jersey, Long Island or Westchester pay no city income tax.
State income tax3.9% to 10.9% in nine brackets for 2026; for a single filer 5.9% starts at $80,650 and 6.85% at $215,400.The five lowest rates were cut 0.1 point for 2026 and fall another 0.1 point in 2027.
NYC income tax3.078% to 3.876% for city residents; 3.876% above $50,000 for a single filer ($90,000 married filing jointly).Moving out of the city — even across the river — ends it. Residency is decided by domicile and days, so keep records.
Sales tax8.875% in all five boroughs (4% state, 4.5% city, 0.375% MCTD).Clothing and footwear under $110 an item are exempt.
Payroll deductionsPaid Family Leave 0.432% of wages (up to $411.91 a year); disability insurance 0.5% up to $0.60 a week.PFL rises to 0.452% in 2027.
Property taxNYC taxes by class: one-to-three-family homes 19.843%, apartments, co-ops and condos 12.439%, commercial 10.848% of the assessed value (FY2026).Assessed values are far below market value, so the effective rate is much lower. A new surcharge on second homes worth over $5 million ($1 million for condos and co-ops) starts with the bill due January 2027.
Estate taxNew York taxes estates above $7.35 million (2026), at rates up to 16% — and gifts made within three years of death are added back.The cliff: an estate more than 5% over the exclusion loses it entirely and is taxed from the first dollar.
Business taxes
Businesses in New York City also deal with two layers: the state and the city. The city taxes LLCs and sole proprietors itself, through the unincorporated business tax.
Corporations (state)6.5% of business income, 7.25% above $5 million (extended through 2029); a fixed-dollar minimum from $25.
Corporations (NYC)C corporations pay the Business Corporation Tax and S corporations the General Corporation Tax, both 8.85%.An S corporation is not recognized by the city — it still pays 8.85% at the company level.
Unincorporated business tax4% on the business income of LLCs, partnerships and sole proprietors doing business in NYC; a return is due once gross income passes $95,000.A credit removes or reduces it for smaller businesses; S corporations are not subject to it.
Pass-through entity taxPartnerships and S corporations can elect each year by March 15 to pay state (and city) tax at the entity level, making it deductible federally.
Sales tax registrationA Certificate of Authority is required at least 20 days before the first taxable sale. Out-of-state sellers register above $500,000 and 100 sales a year into New York.
Payroll costsMinimum wage $17.00 in NYC, Long Island and Westchester (2026, unchanged on January 1, 2027); employers with large payrolls in the city also pay the MCTMT.Self-employed people in the city pay MCTMT at 0.6% once net earnings pass $150,000.
Buying, renting and selling property in NYC
Real estate is where New York’s taxes add up fastest. Buyers, sellers and commercial tenants each have their own.
Transfer taxes (seller)NYC 1% (homes up to $500,000) or 1.425% above; state 0.4%, or 0.65% for homes from $3 million. Commercial: city 1.425% / 2.625%.
Mansion tax (buyer)1% on homes of $1 million or more, rising to 3.9% at $25 million in NYC.
Commercial rent taxIn Manhattan below 96th Street, effectively 3.9% of rent for tenants paying $250,000 a year or more.Tenants with total income under $5 million get a credit.
Forming and keeping a company
A company is formed with the Department of State, then registers with the Tax Department for sales tax and withholding. New York adds one step no other big state has: newspaper publication for LLCs.
LLC or corporation filingLLC $200; corporation $125. Expedite: 24-hour $25, same-day $75, 2-hour $150.
Newspaper publication (LLCs)Within 120 days, publish in two newspapers named by the county clerk once a week for six weeks, then file a $50 Certificate of Publication.Costs vary by county and are highest in Manhattan. Skipping it suspends the LLC’s authority to do business.
Biennial statement$9 every two years, in the month the company was formed, for LLCs and corporations.
Annual state feeLLCs with New York income pay a filing fee from $25 (Form IT-204-LL); corporations owe at least the fixed-dollar minimum from $25.
Agent for serviceThe Secretary of State serves as agent by default; a commercial registered agent is optional.
Out-of-state companyForeign LLC $250, foreign corporation $225; a foreign LLC publishes too.
Why form a company here
- Clients, investors, banks and partners — the densest business network in the country, within a subway ride.
- Low upkeep at the state level: $9 every two years and a small annual fee.
- A large bilingual community of suppliers, landlords, lawyers and lenders in Flushing, Chinatown and Sunset Park.
- Access to the East Coast through the region’s port, airports and the rest of the Northeast market.
What to watch
- Two layers of tax — state and city — on individuals and businesses alike; S corporations still pay the city 8.85%.
- LLC newspaper publication costs real money in Manhattan and must be finished within 120 days.
- Living in the city or just working there makes a big difference — residency audits are common.
- Estates just above $7.35 million fall off the cliff — plan before, not after.
Part 3 · YCL and this city
What YCL does for clients in New York
Everything online: upload documents in the client portal, sign electronically, pay online — in English or Chinese; the important conversations happen face to face on video.
The situations we see most
Finance and tech professionals
Bonuses and RSUs, state and city tax, a move to New Jersey mid-year, accounts in China.
Part-year and multi-state returns, residency planning, FBAR and Form 8938.
About this serviceFreelancers and consultants
The 4% UBT on top of self-employment tax, MCTMT, whether an S corporation helps in the city.
Entity comparison with state and city tax in the numbers, quarterly estimates, the city return.
About this serviceBuilding owners and landlords
Rental buildings in Queens and Brooklyn, depreciation, property tax classes, selling with transfer taxes.
Clean rental books, correct depreciation, sale planning and 1031 exchanges.
About this serviceNew immigrants and students
First-year residency, OPT and H-1B, family abroad, gifts from parents.
Pre-arrival planning, the first-year return, Forms 3520 and 8843.
About this serviceOverseas companies opening a U.S. office
Delaware or New York, the LLC Transparency Act, a Manhattan office lease, the first employee.
Entity set-up, state and city registrations, payroll, Forms 5472 and 1120 every year.
About this servicePart 4 · The city
From a Dutch trading post to the world’s financial center
New York was founded as a business — a trading post of the Dutch West India Company — and it has stayed one. A deep harbor, the Erie Canal and wave after wave of immigrants made it the country’s largest city, its banker and its front door.
The city in U.S. history
- 1626The Dutch buy Manhattan and build New Amsterdam; the English take it in 1664 and rename it New York.
- 1789George Washington is inaugurated on Wall Street; New York is the first capital of the United States.
- 1792Twenty-four brokers sign the Buttonwood Agreement under a tree on Wall Street — the start of the New York Stock Exchange.
- 1825The Erie Canal links the harbor with the Great Lakes, and New York becomes the nation’s leading port.
- 1886The Statue of Liberty is dedicated; from 1892 some 12 million immigrants pass through Ellis Island.
- 1898Manhattan, Brooklyn, Queens, the Bronx and Staten Island join as one city of five boroughs.
- 1952The United Nations moves into its headquarters on the East River.
- 2001After September 11, Lower Manhattan rebuilds and becomes a neighborhood where people live as well as work.
The center of finance, media and trade
Manhattan alone has the largest economy of any U.S. county. More than 40 Fortune 500 companies are headquartered in the city, and the port and airports connect it with every continent.
40+Fortune 500 headquarters in NYC (2026)
8.9MContainers (TEUs) through the Port of NY & NJ in 2025 — busiest on the East Coast
65MVisitors to NYC in 2025
137,800International students in New York State, a third from China
Leading industries and employers
Finance and banking
The two largest stock exchanges in the world, the big banks, asset managers and the professional firms around them — lawyers, accountants and consultants.
NYSE · Nasdaq · JPMorgan Chase · Goldman Sachs · Morgan Stanley
Media, advertising and fashion
Publishers, broadcasters, agencies and fashion houses — and a large freelance world that files Schedule C and pays the city’s unincorporated business tax.
Madison Avenue · Garment District
Health care and life sciences
Major hospital systems, medical schools and pharmaceutical headquarters — and thousands of private practices and clinics.
Pfizer · NYU Langone · Mount Sinai
Trade, port and logistics
The Port of New York and New Jersey is the busiest on the East Coast; warehouses in New Jersey and Long Island serve importers and online sellers.
Port of New York & New Jersey · JFK
Technology
From fintech to adtech and AI, New York is the second-largest tech hub in the U.S., drawing on its finance and media customers.
Cornell Tech · Silicon Alley
Restaurants, retail and tourism
Sixty-five million visitors a year support restaurants, hotels and shops — including the dense small-business economy of Chinatown and Flushing.
Flushing · Chinatown · Sunset Park
Universities and talent
New York State hosts the second-largest number of international students in the U.S., and NYU hosts more than any other university. About a third of the state’s international students come from China.
- New York University — about 27,500 international students (including OPT), the most of any U.S. university
- Columbia University — about 20,700 international students (including OPT); Ivy League research university
- CUNY — the City University of New York, about 247,000 students at 25 campuses across the five boroughs
- Cornell Tech · Fordham · The New School — technology, business, law and design schools that feed the city’s industries
Overseas companies here
Foreign-owned companies employ about 550,000 people in New York State (SelectUSA). Banks, insurers and investment firms from around the world keep their U.S. headquarters in Manhattan.
- Chinese banks — New York branches of Bank of China, ICBC, China Construction Bank and others
- Global banks and insurers — European, Japanese and other foreign banks run their U.S. operations from Manhattan
- The United Nations — missions, consulates and international organizations around its headquarters
- Importers and online sellers — Chinese brands and traders with offices in Manhattan or Flushing and warehouses in New Jersey
For a company from abroad, New York has two extra steps: since 2026 an LLC formed outside the U.S. and registered in New York must report its beneficial owners to the state, and a New York LLC must publish its formation in two newspapers. Add an EIN, a sales tax Certificate of Authority, payroll accounts and, every year, Form 5472 and transfer pricing.
The Chinese and immigrant community
Manhattan’s Chinatown took shape in the 1870s and survived the Chinese Exclusion Act of 1882 as a small, mostly male community. After the 1965 immigration reform it grew quickly, and from the 1980s new arrivals from Taiwan, Hong Kong, Fujian and the rest of mainland China built Chinatowns in Flushing and Sunset Park. In 2001 John Liu became the first Asian American elected to the New York City Council, and in 2009 the first elected to citywide office.
Today more people of Chinese origin live in New York than in any other U.S. city — about 580,000, most of them in Queens and Brooklyn. For tax purposes that means family businesses and restaurants, rental buildings, immigrant workers with several jobs, students on OPT, and parents and accounts in China.
580,000people of Chinese origin in NYC (ACS 2020–2024)
245,000of them in Queens, home of Flushing
36.6%of New Yorkers were born abroad
26%of Queens residents are Asian
New York · Common questions
Is there a Chinese-speaking CPA for clients in New York?
Yes. YCL is a bilingual (English and Mandarin) CPA firm licensed in multiple states. We serve clients in Manhattan, Queens, Brooklyn, Long Island and New Jersey online: documents go through a secure client portal, returns are signed electronically, and meetings are by video.
Do I pay New York City income tax if I only work in the city?
No. Only residents of the five boroughs pay New York City income tax; the commuter tax was repealed in 1999. If you work in the city but live elsewhere you still pay New York State tax on the income earned there, and your home state gives a credit for it.
What is the sales tax in New York City?
8.875% in all five boroughs: 4% state, 4.5% city and 0.375% for the Metropolitan Commuter Transportation District. Clothing and footwear under $110 per item are exempt.
Does a New York LLC really have to publish in newspapers?
Yes. Within 120 days of formation an LLC must publish a notice in two newspapers chosen by the county clerk, once a week for six weeks, and then file a Certificate of Publication ($50). An LLC that does not publish has its authority to do business suspended until it does. The cost depends on the county and is highest in Manhattan.
What is the NYC unincorporated business tax?
A 4% city tax on the business income of sole proprietors, partnerships and LLCs doing business in New York City. A return is required once gross income passes $95,000, and a credit removes or reduces the tax for smaller businesses. S corporations do not pay UBT but pay the city’s 8.85% general corporation tax instead.
How does the New York estate tax cliff work?
New York exempts estates up to $7.35 million in 2026. Between 100% and 105% of that amount the exemption phases out, and above 105% — about $7.72 million — it disappears completely, so the whole estate is taxed at rates up to 16%. Gifts made within three years of death are added back. Lifetime planning matters.
Does my CPA have to be in New York?
No. Federal returns are the same in every state, and YCL’s CPAs are licensed in multiple states. We prepare New York State and City individual and business returns, sales tax returns and UBT filings, and everything — documents, signatures, payment, meetings — is handled online.
How do local businesses in New York work with YCL?
Sign up on this page. Local businesses receive one free service of their choice — a tax-saving review, a set of monthly financial statements, or a rental-property clean-up — and insurance, real estate, lending and legal professionals can become referral partners.
Figures checked on 2026-11-10. Tax rates and government fees change; the government’s own publications govern. This page is general information, not tax or legal advice for your situation.
In New York? We can still handle your taxes
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