State Guide
New York S Corp Election
New York does not automatically recognize your federal S Corp election. You must file Form CT-6 with the Department of Taxation and Finance to elect S Corp status at the state level. Without it, New York taxes your corporation under Article 9-A as a general business corporation, which means a separate entity-level tax bill on top of your personal income tax on distributions.
The Key Facts
Verified 6 August 2026 against NY Tax Law section 660 and Form CT-6-I, and the NYC Department of Finance General Corporation Tax guidance.
NY Fixed-Dollar Minimum Tax
Even with a valid NY S election, the corporation owes a fixed-dollar minimum tax based on New York receipts:
| NY Receipts | Minimum Tax |
|---|---|
| Not more than $100,000 | $25 |
| $100,001 to $250,000 | $50 |
| $250,001 to $500,000 | $175 |
| $500,001 to $1,000,000 | $500 |
| $1,000,001 to $5,000,000 | $1,500 |
| Over $25,000,000 | $5,000 |
The NYC Complication
NYC does NOT recognize S Corp status at all.
If your S Corp operates in New York City, the corporation is subject to the NYC General Corporation Tax regardless of your federal or state S election. This means entity-level tax on NYC-allocated income on top of the federal pass-through treatment.
For NYC-based businesses, this changes the S Corp savings math significantly. The self-employment tax savings still exist at the federal level, but the NYC corporate tax partially offsets them. This is exactly the kind of situation where running the numbers before filing is essential.
Late Election Relief in New York
New York does not have a formal late-election relief procedure equivalent to Rev. Proc. 2013-30. If you miss the filing window, the NY S election does not take effect until the following tax year. However, if you obtained federal late-election relief and the IRS accepted your Form 2553 retroactively, you should file Form CT-6 for the same effective date with a copy of your CP261 acceptance letter attached.
Common Mistakes
- Assuming the federal election covers New York. It does not. You need CT-6 filed separately.
- Ignoring the NYC layer. NYC does not recognize S Corp status. Factor city-level corporate tax into your savings calculation.
- Not filing CT-3-S annually. Even as a pass-through, the S Corp must file its own NY return.
Common questions
Does New York require a separate S Corp election?
Yes. New York does not automatically follow your federal S election. Shareholders must consent and the corporation must file Form CT-6 with the Department of Taxation and Finance under Tax Law section 660.
Does New York City recognise S corporation status?
No. In the City's own words, New York City does not have an S corporation election and does not recognise a New York State S corporation election. Since tax years beginning on or after 1 January 2015 the General Corporation Tax applies specifically to S corporations and QSSSs.
Can New York treat me as an S corporation even if I never filed CT-6?
Yes, in one situation. Under Tax Law section 660(i) an eligible federal S corporation that has not filed CT-6 is deemed to have made the New York election if its investment income exceeds 50 percent of its federal gross income for the year.
Related
Operating in NY? We handle the state filing and flag the NYC complication.