How to Pay New York State Taxes
It takes a massive amount of taxpayer contributions to keep New York State government agencies up and running. According to the New York State Department of Taxation and Finance, over $108.6 billion was collected from state-imposed taxes and fees between 2022 and 2023.
Are you about to add to this year’s numbers by paying your taxes? If so, you’ll likely want to know more about how to pay New York State taxes online, in person, over the phone, or by mail. Below, we briefly cover due dates for state tax payments. Then we go over all the options you have and how to navigate any issues that come up along the way.
When Are New York State Taxes Due?
New York State income tax returns are due every year on April 15 or the next business day if that date falls on a weekend or holiday. You are expected to pay your tax bill immediately on the return due date. Even if you request an extension, the payment is still due on April 15th.
If you are obligated to make estimated tax payments quarterly, your due dates are April 15, June 15, September 15, and January 15.
Businesses face a range of due dates for their state tax obligations. For example, sales tax is due on the 20th if you're a monthly filer, but quarterly and annual filers have different due dates. Quarterly withholding taxes are due on the last day of the month following the quarter where you paid the employees. That is April 30, July 31, October 31, and January 31.
Unfortunately, taxes and tax situations can become complicated quickly, especially when life circumstances change or you start a new business. If you need help determining due dates on your taxes, consult with a tax professional for more details.
How to Make an Estimated Tax Payments in New York
Estimated tax payments can be made exactly in the same way that you’ll make other New York state tax payments. You have the option of paying online through your preferred bank account or by credit card. If you’d prefer to pay by check or money order, you’ll need to fill out Form IT-2105. Then, you’ll mail the information and payment to:
NYS Estimated Income Tax Processing Center
PO Box 4122
Binghamton, NY 13902
Be sure that you include the tax year and the last four digits of your Social Security number on your check or money order.
How to Pay New York State Taxes Online
The easiest way to pay your New York State tax bill is to utilize the Department of Taxation and Finance’s online services system. Using the online system, you’ll be able to pay directly from your bank account or credit card.
To get started, you’ll need to create an account. First, you’ll select what type of account you need to create. With an individual account, you’ll be able to view your history, make payments, choose how you want to get your bills, and respond to notices.
Navigate to the website and select Create an Account. Next, you will need to enter your social security number. Include the PIN number if you received one from the New York State Tax Department. You’ll go through the process of submitting the proper information and setting up your account. Once you’re all set up, you can log into your account. You can put your bank account information into your profile and make a free payment. Or use your credit/debit card to make a payment for a small processing fee.
Can You Pay Without Creating an Account?
On the NY DTF website, you can make a ‘quick payment’ without creating an account. To do so, you’ll need the case number from your bill or notice as well as your Social Security number, filing status, and zip code. Once you have that information, navigate over to the Quick Pay site and make your payment.
Via Credit Card
Another option you have is to pay via credit card through the online payment system. Keep in mind that this type of payment comes at a cost. The Department has made an arrangement with the credit card services provider, Wells Fargo, to devise a payment system that accepts credit. As of 2024, there is a convenience fee of 2.20% for each payment.
How to Pay New York State Taxes by Mail
You can also pay New York State taxes by mail without any additional fees if you would rather not deal with an electronic system. It’s not advised that you send cash through the mail. Instead, the Department will accept mailed-in checks or money orders.
Via Money Order or Check
It is possible for you to make a tax payment via money order or check. First, write the 10-digit case number provided to you by the New York Department of Taxation and Finance on your check or on the money order. You’ll also want to write your taxpayer ID number on the check or money order, too. From there, put your document in an envelope and mail it to:
NYS Assessment Receivables
PO Box 4127
Binghamton NY 13902
How to Pay New York State Taxes In-Person
Currently, New York State prefers that you submit your payment electronically, but you can still always pay in person if you prefer. To pay in person, you’ll need to visit a Department of Finance Business Center. Visit this website to see a list of the offices you can visit and submit a payment to.
What to Do If You Can’t Afford Your New York State Tax Bill
Did you receive a New York State tax bill that you weren’t expecting or that you can’t pay off in one lump sum? Then it’s important to get informed on your options right away. The New York State Department of Taxation and Finance expects you to be able to pay your debt in full. Failure to do so could subject you to penalties, fines, interest, tax warrants, loss of license, and future collection efforts. But depending on the situation, you may qualify for a monthly payment plan on your taxes, an offer in compromise to settle for less than you owe,
What to Do If You Can’t Afford Your New York State Tax Monthly Payment
If you’re already on a payment plan but can’t afford your monthly payment, it’s crucial that you reach out to the tax agency as soon as possible. Your payment plan is a legally binding agreement. Failure to make timely payments could completely negate your payment plan, especially if you don’t get in touch with the tax agency about your inability to pay. In general, the agency is more likely to be willing to work with you if you inform them quickly about a payment issue.
Navigating Penalties and Fees
If you’re not on a payment plan yet and you don’t make a timely payment, the New York State Department of Taxation and Finance will first attempt to notify you about your balance due. If that doesn’t prompt you to pay what you owe, the agency will apply fines, fees, and penalties against your account. These penalties will compound every month that your balance remains unpaid.
Can You Negotiate Your Tax Debt Down?
It depends. The New York Department of Taxation and Finance does have some programs, like an Offer in Compromise agreement, that allow taxpayers to reduce their overall tax debt liabilities. These programs are only available to taxpayers who can prove they are experiencing a financially distressing situation.
Will the New York State DTF Forgive a Tax Debt?
In New York, tax debt is valid for 20 years, which is double the statute of limitations on IRS tax debt. New York state does not have a straight-out forgiveness program, but if you can genuinely prove your inability to pay, the agency will likely work with you to find a solution.
Consequences of Not Paying New York State Taxes
If you don’t pay NY state taxes when they’re due, you'll start to incur penalties. The penalty for non-payment is 0.5% of the unpaid amount every month until the balance reaches 25%. You’ll also accumulate interest every month. You could also face a tax levy that puts your property and assets at risk.
Do You Need Additional Help With Your New York State Taxes?
Once you’ve paid your New York State taxes, the agency will cease collection efforts, and you can rest assured that you’re in good standing. If you can’t make the full payment immediately, it’s important to get informed about your options ASAP.
In most cases, you can resolve your situation by agreeing to a payment plan. Depending on your situation, you might also have other relief options, such as penalty abatement available to you.
To determine your best course of action, consult with a tax expert about your tax situation and ability to pay. Use TaxCure to find a local tax professional to help you get started on your tax resolution journey today.
- https://www.tax.ny.gov/pay/
- https://www.tax.ny.gov/pay/ind/pay-income-tax-online.htm
- https://www.tax.ny.gov/pit/file/income_tax_filing_due_dates.htm
- https://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/filing_requirements_for_sales_and_use_tax_returns.htm
- https://www.tax.ny.gov/bus/wt/duedates.htm
- https://www.tax.ny.gov/pdf/current_forms/it/it2105_fill_in.pdf
- https://www.tax.ny.gov/pit/ads/it2105mn.htm