Figure 1: Top Marginal Corporate Franchise Tax Rates
NYS, NYC, and Competitors
Note: NYC Corporate Franchise Tax (CFT) is deductible from income sourced to NYS for the NYS CFT, which reduces the marginal State rate of 7.25% to an effective rate of 6.61%. The MTA surcharge is 30% of the State CFT liability for income sourced to the MTA region. Texas does not have a corporate franchise tax, but levies a gross receipts tax of 0.75%. Pennsylvania is the only other state with a significant local corporate tax. Philadelphia imposes a Business Income & Receipts Tax (BIRT) of 0.1415% of gross receipts plus 6.3% of net taxable income, as well as a Net Profits Tax (NPT) of up to 3.9%. See City of Philadelphia, "Business Income & Receipts Tax (BIRT)."
Source: City of New York, Department of Finance, "Business corporation tax;" State of New York, Department of Taxation and Finance, "CT-3-M_I: General Business Corporation MTA Surcharge Return 2024 - Instructions;" and Tax Foundation, "State Corporate Income Tax Rates and Brackets, 2025."
