Article 33 – Franchise tax on insurance corporations
Information on this page relates to a tax year that began on or after January 1, 2024, and before January 1, 2025.
You must file and pay the franchise tax on insurance corporations if you are engaged in an insurance business in New York State, or otherwise subject to tax under Article 33, and you are a:
- life insurance corporation,
- non-life insurance corporation, or
- captive insurance company.
An insurance corporation is any corporation, association, joint stock company or association, person, society, aggregation, or partnership doing an insurance business. It also includes a Health Maintenance Organization (HMO) required to obtain a certificate under Article 44 of the Public Health Law.
Information
Calculating the tax
Authorized life insurance corporation
Highest tax based on four bases + Subsidiary capital tax (if you have subsidiaries) + Life insurance company premiums + MTA surcharge (if applicable)
An authorized life insurance corporation is also subject to the limitation on tax under Tax Law § 1505(a)(2) and the floor limitation on tax under Tax Law § 1505(b). The limitations are based on taxable premiums. The rate for the limitation under § 1505(a)(2) is 2% (0.02) and the limitation under § 1505(b) is 1.5% (0.015).
Authorized non-life insurance corporation
The greater of the following:
- total tax on premiums + MTA surcharge (if applicable)
- accident and health premiums: tax rate is 2% (0.02)
- other nonlife insurance company premiums: tax rate is 1.75% (0.0175)
- minimum tax: $250
Unauthorized life insurance corporation and non-life insurance corporation
Highest tax based on four bases + Subsidiary capital tax (if you have subsidiaries) + MTA surcharge (if applicable)
Unauthorized life insurance corporations and unauthorized non-life insurance corporations are not subject to the premiums tax or the limitations under §§ 1505(a)(2) and 1505(b).
Captive insurance company
Highest of two tax bases:
- total tax on gross direct premiums and assumed reinsurance premiums (see Form CT-33-C, Captive Insurance Company Franchise Tax Return and its instructions for rates), or
- minimum tax - $5,000.
Paying the mandatory first installment and estimated tax
You must file and pay a Mandatory First Installment (MFI) of tax and the MTA surcharge, if applicable, for the upcoming tax year on Form CT-300, Mandatory First Installment (MFI) of Estimated Tax for Corporations, if your tax after credits for the second preceding tax year exceeds $1,000.
Also, you must file and pay estimated tax and MTA surcharge, if applicable, on Form CT-400, Estimated Tax for Corporations, and make quarterly payments of all estimated tax due if your corporation reasonably expects to owe more than $1,000 in franchise tax after credits.
Most insurance corporations are mandated to e-file the first installment and estimated tax. If so, you may submit Forms CT-300 and CT-400 using:
- approved software for corporation tax, or
- Corporation Tax Web File which is free and accessible through your Business Online Services account.
When to file your return
| Type of filer | Due date |
|---|---|
| Calendar year | On or before April 15 |
| Fiscal year | On or before the 15th day of the fourth month after the end of the period |
If your due date falls on a Saturday, Sunday, or legal holiday, you may file your return on or before the next business day.
How to file and pay
You may have to e-file your return. See e-file and e-pay requirements for certain filers for details.
Authorized and unauthorized life insurance corporations
You may need to file:- Form CT-33, Life Insurance Corporation Franchise Tax Return, or
- Form CT-33-A, Life Insurance Corporation Combined Franchise Tax Return; and
- if subject to the MTA surcharge, Form CT-33-M, Insurance Corporation MTA Surcharge Return.
Authorized nonlife insurance corporations
You may need to file:
- Form CT-33-NL, Non-Life Insurance Corporation Franchise Tax Return, and
- if subject to the MTA surcharge, Form CT-33-M.
Captive insurance companies
You must file Form CT-33-C, Captive Insurance Company Franchise Tax Return. Captive insurance companies are not subject to the MTA surcharge.
If you cannot meet the filing deadline
If you cannot meet the filing deadline, you may request a six-month extension of time by:
- filing Form CT-5, Request for Six-Month Extension to File, and
- paying your properly estimated franchise tax and MTA surcharge on or before the due date of the return.
Most insurance corporations are mandated to e-file the extension. If so, you may submit Form CT-5 using:
- approved software for corporation tax, or
- Corporation Tax Web File, which is free and accessible through your Business Online Services account.
Definitions
Captive insurance company
A captive insurance company is any insurance company licensed by the Superintendent of Insurance under the provisions of Article 70 of the Insurance Law.
Estimated tax
Estimated tax is the amount of estimated franchise tax for the current tax year minus the amount of estimated allowable tax credits for the current tax year. A corporation doing business in the Metropolitan Commuter Transportation District (MCTD) that owes estimated franchise tax must also pay an estimated MTA surcharge.
Highest based on four bases
- Entire net income: Federal taxable income with certain modifications for items of income and deduction that New York State treats differently, allocated to New York State. The tax rate for entire net income for life insurance corporations is 7.1% (0.071).
- Business and investment capital: Average fair market value of all the corporation's assets minus its average current liabilities, subsidiary capital, and assets held as reserves, allocated to New York State. The tax rate for business and investment capital is 0.16% (.0016).
- Alternative tax: Entire net income before allocation, plus the total salaries and compensation paid to the officers and stockholders, multiplied by 30% (0.30), allocated to New York State. The tax rate for the alternative tax is 9% (0.09).
- Minimum tax: $250.
Life insurance company premiums
Life insurance company premiums include life, accident and health, and other insurance premiums. The tax rate for premiums is 0.7% (0.007).
Metropolitan transportation business tax (MTA surcharge)
The metropolitan transportation business tax (MTA surcharge) applies if a corporation does an insurance business, employs capital, owns or leases property, or maintains an office in the Metropolitan Commuter Transportation District (MCTD). The MCTD includes the counties of New York (Manhattan), Bronx, Kings (Brooklyn), Queens, Richmond (Staten Island), Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester. The tax rate for the MTA surcharge is 17% (0.17).
Premiums
Premiums include all amounts received as consideration for insurance contracts or reinsurance contracts, including premiums deposits, assessments, policy fees, membership fees, any separate costs assessed upon policy holders, and every other compensation for such contract.
Subsidiary
A subsidiary is a corporation of which over 50% (0.50) of the voting stock is directly owned by the taxpayer.
Subsidiary capital
Subsidiary capital includes all investments in the capital stock of subsidiary corporations, plus all indebtedness from subsidiary corporations (other than accounts receivable acquired in the ordinary course of a trade or business for services rendered, or for sales of property held primarily for sale to customers). The tax rate for subsidiary capital is .08% (0.0008).
For more information
- Corporation tax forms and instructions (current year) or (prior years and periods)
- Corporation tax memos (TSB-Ms)
- Corporation tax advisory opinions