Updated September 4, 2026. Quick answer: New York will not treat a federal S-corp as an S-corp unless it files its own election, Form CT-6. Skip it and the corporation pays full C-corp franchise tax. Even after filing CT-6, the entity still owes a fixed-dollar-minimum franchise tax, up to $4,500, that a plain LLC or partnership never pays.
Does this state require its own election
Yes. New York requires its own S election, Form CT-6, separate from the federal Form 2553. A federal S-corp that does not file CT-6 pays the same corporate franchise taxes as a C-corp.
“New York State does not automatically treat the company as a New York S corporation unless it is mandated to file as an S corporation under Tax Law § 660(i). … Federal S corporations that are not qualified or do not make a New York S election pay the same corporate franchise taxes as C corporations.”
New York State Department of Taxation and Finance, S Corporations
What it costs at the entity level
Even after a valid CT-6 election, a New York S-corp still owes the Article 9-A fixed-dollar-minimum franchise tax on Form CT-3-S, scaled by New York receipts; a default LLC or partnership taxed as a pass-through files an information return instead and does not owe this schedule.
| What New York charges | Figure |
|---|---|
| Rate | Fixed dollar minimum schedule by New York receipts |
| Minimum | $25 (receipts of $100,000 or less) up to $4,500 (receipts over $25,000,000) |
“$25 [for NY receipts] Not more than $100,000 … $4,500 [for NY receipts] Over $25,000,000”
New York State Department of Taxation and Finance, Form CT-3-S instructions
Where recognition breaks down
For any taxpayer that skips CT-6, the practical effect is full C-corp treatment: New York’s own guidance states such a corporation pays the same franchise taxes as a C-corp.
“Federal S corporations that are not qualified or do not make a New York S election pay the same corporate franchise taxes as C corporations.”
New York State Department of Taxation and Finance
The comparison against a plain LLC
New York is the clearest case in this kit: a mandatory separate election with a hard C-corp-treatment penalty for skipping it, plus its own fixed-dollar-minimum franchise tax on top, neither of which a plain LLC or partnership faces in this form.
What this does not model
This page does not model New York City’s separate, additional non-conformity for S-corps at the city level; only the state-level rule is covered here.
No federal tax modelling is repeated here; see the federal S-corp election calculator for the payroll-tax and QBI mechanics this page assumes but does not recompute. No personal New York income tax on the pass-through income itself is modelled either.
Sources
Every figure on this page is read from the text quoted above, fetched directly from the state’s own site or code, as read on September 4, 2026.
| What it establishes | Source |
|---|---|
| Whether New York requires its own S-corp election | New York State Department of Taxation and Finance, S Corporations |
| What New York charges an S-corp at the entity level | New York State Department of Taxation and Finance, Form CT-3-S instructions |
| How New York treats S-corp recognition | New York State Department of Taxation and Finance |
General consumer information, not financial, tax or legal advice. State rules are as published by the cited source on September 4, 2026 and change; your own facts govern, and an S-corporation election is a decision to take with a tax professional who has seen your books.