Foreign corporations doing business, employing capital, or owning or leasing property in New York in a corporate or organized capacity, or maintaining an office in New York, or deriving receipts from activity in New York, are subject to corporation franchise tax, regardless of whether they are authorized to do business in-state.
New York receipts (economic nexus threshold): A corporation derives receipts from activity in New York State and is subject to tax if its New York receipts equal or exceed $1 million (subject to adjustment based on the Consumer Price Index (CPI)). For the period January 1, 2024, through December 31, 2025, the receipts amount is $1,283,000 or more in a tax year. Merchant discount fees received by a corporation for processing credit card transactions are included in its New York receipts.
An alien corporation that is not treated as a domestic corporation under the IRC as defined in IRC §7701, and does not have effectively connected income for the taxable year will not be subject to tax.
