State and Local Taxes

Companies operating in Dutchess County pay New York State corporate income tax, local property tax on real property and sales tax on most purchases.

Corporate income tax: Most corporations are subject to NYS tax on general business corporations imposed by Article 9-A of the Tax Law. General business corporations annually pay NYS income taxes computed under the corporation franchise tax law. The utility corporations tax applies to certain transportation and transmission corporations, utility companies, telecommunications services and agricultural cooperatives. In addition there is a tax on the unrelated business income of non-stock not-for-profit corporations. There is also a gross receipts tax for petroleum businesses.

Local real property tax: Local taxes to the county, municipality and school district, and certain other special taxing jurisdictions are paid annually by property owners. There is no tax on personal property, such as boats or automobiles. See current property tax rates

Sales tax: State and local sales taxes of 8.25% are paid on most purchases (food, prescription and non-prescription drugs and clothing under $100.00 are exempt). Production equipment for manufacturers is exempt.

Incentives: Certified companies located in the Empire Zone are exempt for most state and local taxes for a 10-year period. See the Empire Zone section in the DCEDC ThinkDutchess website for more information. In addition, there are many other state and local tax credits and abatements available for qualifying companies.

Types of business organizations and tax rates for businesses are described in the Handbook of New York State and Local Taxes. Tax requirements for new businesses are described in New York State Guide for New Businesses (Publication 30). Empire Zone tax credits are described in A Guide to Business Tax and Personal Income Tax Credits Within Empire Zones (Publication 26). These documents are found at the NYS Department of Taxation and Finance website, www.tax.state.ny.us .

View a summary of State and Local Taxes