New York – Corporate Income Tax: MTA Surcharge Rate Increased for 2021, Deriving Receipts Thresholds Unchanged (Dec. 18, 2020)

by Jennifer Kobylarz, CPA, MST

The New York corporate franchise tax MTA surcharge rate will increase from 29.4% to 30% for tax year 2021. The rate will remain the same for future tax years, unless the Commissioner of Taxation and Finance confirms a new rate. Taxpayers should consider the 30% MTA surcharge rate when deciding on the amount of the second, third, and fourth estimated MTA surcharge payments for tax years beginning on or after January 1, 2021, and before January 1, 2022. (click here for more)

Deriving Receipts Thresholds

There will be no change for 2021 in the thresholds at which a corporation is considered to be deriving receipts from activity in New York State and in the Metropolitan Commuter Transportation District for purposes of imposing the corporate franchise tax and the MTA surcharge. The Commissioner is required to adjust the thresholds if he finds that the Consumer Price Index (CPI) has changed by 10% or more since the date that the thresholds were last changed by the Commissioner.