New York: The Empire State

The state of New York is located in the northeast of the USA. Lake Erie and Lake Ontario form natural borders with Canada’s neighbors. In the north there is also a border by land. New York is counted among the mid-Atlantic states. The valley of the Hudson River and Long Island are located in the southeast on an area of ​​a good 140,000 km². The island, 200 kilometers long and 20 to 30 kilometers wide, is home to large parts of New York City, by far the most populous city in the United States. With a population of over 20 million, New York is the third largest city in the United States based on the number of residents. According to ehuacom, the capital is Albany.

With easy access to the North American market, world-class infrastructure, extensive research and development, New York offers many reasons why a company should be located here. Of course, the lowest taxes in decades are also a big incentive. There are also other, sometimes creative, incentives for entrepreneurs. The overall package ensures that the economy knows only one direction: upwards. The Empire State attracts companies from all over the world and does its best to help them grow and prosper. The incomparable New York attitude to life comes as a side dish.

New York Location Map

THE FUTURE IS NOW

One indication of the state’s current success is the fact that more Fortune 500 companies are now based in New York than ever before.

In New York, the future has already begun. It is characterized by companies that are already based there, who use their talents and resources intelligently and innovatively, but also by entrepreneurs who want to work in the dynamic environment in the future.

Taxes are at their lowest in a long time, private sector jobs have peaked and the state is investing $150 billion in infrastructure. It is the largest infrastructure program in the entire country and is intended to help strengthen New York State as a business location and make it even more attractive.

DIVERSE TALENT POOL & EXCELLENT (TRAINING) EDUCATION

The diverse and talented workforce is a major success factor. They are trained in excellent educational institutions and benefit from state investments in the workforce of tomorrow.

In the Empire State, world-class public and private universities coexist. New York is the only US state with two elite universities and is home to the largest public university system. The first tuition-free college program is also here. Participants in the Excelsior Scholarship undertake to remain in New York after completing their studies. In this way, the state attracts talented people with specialist knowledge for the local companies.

Educational partnerships and cooperations between companies are very important. In this way, companies can benefit from the research and development facilities of the universities and the students can gain practical experience with companies and make contacts.

New York invests heavily in workforce training and programs that prepare them for an innovative economy. These measures ensure that the local companies can fall back on workers with expertise.

INVESTMENTS IN SUSTAINABLE ENERGY SOURCES

Sustainable and innovative concepts are also used to optimize the infrastructure, which are intended to support economic success. New York’s governor is committed to the growth of the so-called green economy. The country’s largest offshore wind agreement was already decided in 2019. By 2035, the wind is expected to generate 9,000 megawatts of energy. Investments in renewable energy and energy storage have already been made or are pending. The New NY Broadband Program aims to provide all New Yorkers with high-speed broadband access.

World-class innovations and major investments in the building blocks of the future will also make New York shine in the future that has already begun.

NEW YORK INCOME TAX

New York imposes an income tax of 4 – 8.82% depending on income. In addition, federal income taxes are payable.

CORPORATE INCOME TAX IN NEW YORK

New York levies a 6.5% corporate income tax. In addition, federal corporation tax is payable.

SALES TAX IN NEW YORK

There is no sales tax or Value Added Tax (VAT) in the USA based on the European model. Instead, in the United States, states, counties, and municipalities levy a local sales tax on the sale of products (but not services).

Sales tax rate in New York

The sales tax in New York is 4% at the state level. Municipalities or districts charge an average of 4.52% sales tax. Combined, an average of 8.52% is due.

New York Nexus Laws & Sales Tax

Learn more about the Economic Nexus Laws in the context of Sales Tax here.

Effective Date

Effective “immediately after Wayfair Ruling, June 21, 2018”; however, there is currently no clearly stated effective date

Transactions included:

Total cumulative gross receipts from sales of tangible personal property shipped to the US state (SaaS counts as TPP); Services are not included in the threshold

Treatment of tax-exempt transactions:

Exempted sales are included in the threshold; exempted services are excluded

Reason:

Turnover and transaction volume

Sales/Transactions Threshold:

$500,000 and 100 transactions

Evaluation period:

The threshold applies to the previous four sales tax quarters as defined by the US state

Extra information:

  • Registration Requirements: New York requires that a remote business register to collect and remit New York sales tax within 30 days of crossing the Economic Nexus Threshold and begin collecting taxes 20 days thereafter. See the Nexus FAQ formore information.
  • Remote Seller Requirements

New York Marketplace Sellers & Sales Tax

Learn more about Marketplace seller registration requirements

Date of enforcement by the marketplace broker:

June 1, 2019

Economic Nexus Threshold:

More than $500,000 in gross receipts and more than 100 sales of tangible personal property in New York in the last four sales tax quarters. Remote sellers should include sales through a marketplace in the calculation of the threshold. Marketplace intermediaries include all sales made through the marketplace when calculating the threshold.

Registration requirements:

  • Remote Multichannel Sellers: You must register with the New York Department of Taxation and Finance and collect New York sales tax on sales that are not taxed by a marketplace intermediary once you have crossed the Economic Nexus Threshold.
  • Remote Marketplace Vendors: You must register once you cross the Economic Nexus Threshold. Contact the New York Department of Taxation and Finance for more information.
  • In-State Multichannel Sellers: You must register with the Department of Taxation and Finance and collect tax on sales that are not taxed by a marketplace intermediary.
  • State Marketplace Sellers: You must register. Contact the New York Department of Taxation and Finance for more information.