NYC Admin. Code Title 11 Ch. 5 · 4% rate · file if gross income is more than $95,000 before costs · March 15 (NYC-204) / April 15 (NYC-202) for calendar years. A credit can reduce the tax to $0 without removing the filing duty.
Official sourceLast reviewed: October 30, 2026
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Start with the right question.
Who falls under UBT
UBT covers individuals and unincorporated entities doing business wholly or partly in NYC. Partnerships and disregarded single-member LLCs owned by individuals fall here; NYC Finance Memorandum 99-1 addresses those SMLLCs. LLCs taxed as corporations, including S-corps, instead fall under GCT or BCT.
Official sourceHow UBT is calculated: a five-step ladder
1. Test total gross income from all business, wherever carried on, before cost of goods sold or services: filing starts above $95,000. 2. Determine net income from NYC business, allocated if business is partly outside NYC. 3. Subtract the $5,000 exemption. 4. Multiply taxable income by 4%. 5. Subtract the business tax credit.
Official sourceOne exemption, including short years
The $5,000 exemption applies once per taxpayer across all businesses. For a short year it is prorated at $13.70 per day or $416.67 per month.
Official sourceThe business tax credit, exactly
Tax at or below $3,400 is fully credited. At $5,400 or above, no credit applies. Between those amounts, credit = tax × ($5,400 − tax) ÷ $2,000. $3,400 ÷ 4% = $85,000 taxable income; adding the $5,000 exemption gives $90,000 net income before other allowances.
Official sourceThree worked credit examples
$2,000 tax: $2,000 credit, $0 due. $4,400 tax: $4,400 × ($5,400 − $4,400) ÷ $2,000 = $2,200 credit, leaving $2,200 due. $6,000 tax: $0 credit, $6,000 due.
Official sourceReturns, extensions and estimated tax
NYC-202 covers individuals, including disregarded SMLLC owners; NYC-202S is a simplified version. NYC-204 covers partnerships, including multi-member LLCs. Calendar-year dates are March 15 for NYC-204 and April 15 for NYC-202. NYC-EXT gives an automatic six-month filing extension if filed by the due date, not a payment extension. Estimated tax expected to exceed $3,400 uses NYC-5UBTI for individuals or NYC-5UB for partnerships; underpayment penalties are computed on NYC-221.
Official sourcePaying UBT
File and pay through NYC Business Tax e-Services. E-check or EFT carries no fee; card payments carry a 2% fee.
Official sourceCommon trap: confusing gross income with profit
The $95,000 test is gross income before costs, not profit. A credit that brings tax to $0 does not remove filing when gross income exceeds $95,000.
Official sourceCommon trap: electing S-corp without modeling city tax
Do not treat an S election as a way to avoid UBT without comparing GCT and payroll. Ask your CPA and review the CT-6 guide.
Official sourceCommon trap: paying after the extended date
NYC-EXT extends filing only. Payment remains due on the original due date.
Official sourceYour preparation checklist
- 1.Identify the LLC tax classification and correct NYC return.
- 2.Check all-business gross income before costs against the more-than-$95,000 filing test.
- 3.Determine NYC net income, allocated where needed, and the single $5,000 exemption.
- 4.Calculate 4% tax and the applicable business tax credit.
- 5.Calendar the return and original payment due date; use NYC-EXT only for filing time.
- 6.Review estimated tax if expected tax exceeds $3,400.
- 7.File and pay through NYC Business Tax e-Services; ask your CPA about elections.
New York tax comparison
Keep the requirements separate.
| Your LLC is taxed as | NYC tax | Form |
|---|---|---|
| Disregarded single-member LLC, individual owner | UBT | NYC-202 (or NYC-202S) |
| Partnership, 2+ members | UBT | NYC-204 |
| S-corp, federal + CT-6 | GCT | See GCT guide |
| C-corp | Business Corporation Tax | Not covered here |
| Item | Rule |
|---|---|
| E-check / EFT | No fee |
| Card payment | 2% fee |
| Late filing | 5% per month or part, maximum 25% |
| Over 60 days late | Minimum: lesser of $100 or tax due |
| Late payment | 0.5% per month, maximum 25%, plus interest |
| NYC-EXT | Automatic 6 months for filing, not payment |
| Estimated tax | Expected tax above $3,400; NYC-5UBTI / NYC-5UB |
| Underpayment penalty | Computed on NYC-221 |
Carry the decision forward.
Corp USA is not a law firm and does not provide legal advice. State fees are pass-through. Service fees and taxes are separate. Review the order price before payment.
Before your next step
For UBT, an LLC taxed as a partnership or a disregarded single-member LLC owned by an individual is an unincorporated business. LLCs taxed as corporations fall under GCT or BCT instead.
Official sourceThe rate is 4% of taxable income.
Official sourceYes, if total gross income from all business before costs exceeds $95,000.
Official sourceYes, through NYC Business Tax e-Services. E-check/EFT has no fee; card payments have a 2% fee.
Official sourceLate filing is 5% per month or part of a month, up to 25%. After more than 60 days, the minimum is the lesser of $100 or the tax due. Late payment is 0.5% per month, up to 25%, plus interest.
Official sourceA partial resident credit for UBT exists on the personal return. See the NYC Finance UBT page; ask your CPA about your return.
Official sourceSources
- NYC Finance UBT page, forms and instructions
- NYC-202 2025 instructions and credit worksheet
- NYC-202S 2025 instructions
- NYC-204 2026 instructions
Last reviewed: October 30, 2026
Corp USA is not a law firm and does not provide legal advice. Not a government agency. Not tax advice.