Tax and finance · Reinvent NY glossary
Corporate tax is a levy imposed by the federal government and most state governments on the profits earned by corporations. The current federal corporate tax rate in the United States is 21%, established by the Tax Cuts and Jobs Act of 2017.
Corporations operating in New York face additional state and city taxes. New York State imposes a corporate franchise tax with rates varying based on income, while New York City levies its own General Corporation Tax at 8.85% on allocated net income. Combined, the effective corporate tax rate for NYC businesses can exceed 30%.
For international investors establishing businesses through E-2 or EB-5 visas, understanding the corporate tax structure is crucial for business planning. Choosing the right business entity (C-Corp, S-Corp, LLC) significantly impacts tax liability. Many foreign-owned businesses benefit from consulting with a CPA who specializes in international tax law to optimize their tax position and ensure compliance with both U.S. and home-country tax obligations.
The four states international buyers ask about most: New York up 5.2% on the year, California at a 4.22% yield, and what Texas and Florida really cost.
Indiana, Missouri and Ohio in 2026: state gains of 3-3.5% on the year with yields of 5.75-6.61%, and the secondary cities quietly outperforming the metros.
Baltimore in 2026: a $192,669 typical value, $1,799 rents and an 11.2% gross yield — the highest on the Northeast corridor, and what the price is telling you.
Ohio in 2026: a $251,502 state median up 3.5% on the year, with Cleveland at a 14.13% gross yield and Columbus at 6.96% — and what separates the two.
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