Unincorporated Business Tax (UBT)
A tax is charged to every individual or unincorporated entity carrying on a trade, business, or profession – in whole or part – in New York City.
What Activities are Subject to This Tax?
By Law, What Activities and Unincorporated Entities
are Exempt from this Tax?
Conformity with State Laws
Tax Credits
Tax Forms & Filing Information
Tax Rates
Legal Authority
Frequently Asked Questions
Contact Us
What Activities are Subject to This Tax?
Note: The Metropolitan Commuter Transportation Mobility Tax does not need to be added back when filing UBT returns.
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 a person carries on two or more Unincorporated Businesses, all are treated as one for the purpose of this tax.
By Law, What Activities and Unincorporated Entities are Exempt from this Tax?
- The performance of services by an individual as an employee is not subject to UBT. The facts of each case determine whether or not an individual acts as an employee.
- 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.
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Conformity with State Laws
New York City revised its business taxes, bringing them into closer conformity with State laws.
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Tax Credits
Biotechnology Tax Credit
A new law allows a tax credit for qualified investors/owners for certain expenses incurred by emerging New York City biotechnology companies.
Download FAQ
Biotechnology Application
Credits For Tax Years
- Beginning in or before 2008: A UBT liability of $1,800 or less is allowed a credit for the full amount of the tax.
- Beginning in or after 2009: A liability of $3,400 or less is allowed a credit for the full amount of the tax.
- In or before 2008: Liabilities between $1,801 and $3,200 are allowed a partial credit.
- In or after 2009: Liabilities between $3,401 and $5,400 are allowed a partial credit.
Individual New York City residents are allowed to claim a credit against their NYC Personal Income Tax liability for a portion of the UBT payments made as sole proprietors. The amount of the credit depends on the City resident's taxable income for personal income tax purposes. Part-year residents receive a partial credit.
Tax Forms and Filing Information
Forms & Publications
Forms & Publications Archive
Tax Rates
A tax is charged at a rate of 4 percent (4%) for taxable income allocated to New York City.
Legal Authority
Title 11, Chapter 5 Administrative Code
Enabling Act: Chapter 772 of the Laws of 1966
Contact Us
Email
Write to us:
NYC Department of Finance
Correspondence Unit
One Centre Street, 22nd Floor
New York, NY 10007
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Additional Information
Related link: Refunds
