This Week
  • Placing a loved one in an elder care facility is not an easy decision for caregivers.

  • HBT Architects took a risk and parted with some clients on its new path.

  • East High School teacher and blogger Kelly LaLonde speaks out about education.

  • GM injection: The automaker has invested $150 million here since 2011.

  • Robert W. Hurlbut heads a 1,400-employee business started by his grandparents.

  • The new edition of Explore Greater Rochester is here.

N.Y. has third-highest tax rates on non-corporate firms

Rochester Business Journal
September 6, 2013

New York State has the third-highest marginal tax rates for sole proprietorships and S-Corporations, a study by the Tax Foundation shows.

The tax rate for sole proprietorships in New York is 50.2 percent, and the rate for S-Corps is 47.2 percent, data released Tuesday shows.

California, at 51.8 percent and 48.8 percent ranks first in both categories. Hawaii, at 50.4 and 47.4, is second, the study shows.

Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming, at 42.6 percent, have the lowest rates for sole proprietorships. They also have the lowest rates for S-Corps, at 39.6 percent.

The national average for sole proprietorship tax rates is 47.5 percent. The average for S-Corps is 44.5 percent. 

The study also shows the number of non-corporate, or pass-through, businesses nationally tripling from 1980 to 2010, to 30.3 million from 10.9 million. In addition to sole proprietorships and S-Corps, partnerships and limited-liability companies also are considered non-corporate entities.

The number of traditional C-Corporations declined to 1.6 million in 2008 from 2.2 million in 1980.

Non-corporate businesses are referred to as pass-through because the firm’s profits are passed to the owners and taxed on individual tax returns, tax foundation representatives said. C-Corps are taxed at the corporate level first and distributed to the owner or shareholders to be taxed at the individual level.
 
Some 59 percent of pass-through business income in 2010 was reported by taxpayers earning more than $200,000, the study shows.

(c) 2013 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or email service@rbj.net.


What You're Saying 

There are no comments yet. Be the first to add yours!

Post Your Own Comment

 
Username:
Password:

Not registered? Sign up now!
 

To Do   Text Size
Post CommentPost A Comment eMail Size1
View CommentsView All Comments PrintPrint Size2
ReprintsReprints Size3
  • E-mailed
  • Commented
  • Viewed
RBJ   Google