Form IT-219: Credit for New York City Unincorporated Business Tax (2026)

Q: How much income can be excluded on IT-221?

You may exclude up to <b>$5,000 ($10,000 for joint filers)</b> of qualifying disability income, reduced by any NY pension or annuity exclusion previously claimed.

Q: Are HSA contributions deductible for New York tax?

No—unlike the federal system, New York does <b>not</b> allow an HSA deduction.

Last reviewed: 2025-10-29

Use the New York Tax Form Calculator Form IT-219 — Credit for NYC Unincorporated Business Tax as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 New York state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.

Form IT-219 is used by a New York City resident individual, estate or trust (or part-year resident) who was subject to the NYC Unincorporated Business Tax (UBT) and wishes to claim a credit for that UBT paid, against their City or State personal income tax liability. The credit is entered on your resident return (IT-201) or part-year/other return (IT-203).

You must attach Form IT-219 and supporting Schedule A or Worksheet A if applicable showing the prorated amount of UBT paid by the partnership or unincorporated entity attributable to your share if you were a partner or beneficiary.

Who qualifies: You qualify if you are a NYC resident or part-year resident and paid (or are allocated) unincorporated business tax to New York City as a sole proprietor, partner, member, or beneficiary of an estate/trust.
Eligible amount: Enter the UBT amount paid by you, or your share if in a pass-through entity, from Form NYC-202, line 21, or Form NYC-204 (partnership) itemised share.
Credit percentage: For city taxable income ≤ $42,000 the credit equals 100% of the UBT paid. For city taxable income between $42,001 and $142,000 the credit rate phases down on a sliding scale. For city taxable income ≥ $142,000 the credit percentage is fixed at 23 % of the UBT paid.
Limitations: Credit cannot exceed your NYC personal income tax liability; any unused credit cannot be refunded or carried over to future years.
Part-year residents: Individuals who began or ended New York City residency during the year must complete Worksheet A to compute the prorated credit based on days of residency and allocated income base.

Tax Law – Article 22, Section 606(a)
Part 1 – Partner (see instructions)
1	Enter the amount from Form NYC-204, line 23 (see instr.)		1
2	Enter the amount from Form NYC-204, line 20 (see instr.)		2
3	Add lines 1 and 2			3
4	Enter your percentage of total distributive shares from Form NYC-204, Schedule C, column I. Enter amount as a decimal and round to the fourth decimal place (for example, % = )			4
5	Multiply line 3 by line 4 (if more than one business, see instructions)			5
Part 2 – Individual
6	Resident individual: Enter the amount from Form NYC-202, line 21, or Form NYC-202S, line 8 (see instr.) Part-year resident individual: Enter the amount from Worksheet A, line 5 (on back)			6
Part 3 – Beneficiary’s share of unincorporated business taxes (see instructions)
7	Beneficiary – Enter your share of New York City unincorporated business taxes imposed on the estate or trust (see instructions)			7
	Name of estate or trust		Employer identification number
Part 4 – Computation of credit
8	Fiduciaries: Enter the amount from Schedule A, Fiduciary line, column D (on back; see instr.) All others: Add lines 5, 6, and 7 (partners, see instructions)			8
9	Enter your taxable income from: Full-year NYC resident individuals – Form IT-201, line 37 Part-year NYC resident individuals – Form IT-360.1, line 47 Full-year NYC resident estates or trusts – Form IT-205, line 5 Part-year NYC resident trusts – Form IT-205-A, line 10, col. (b)		9
10	If line 9 above is: – $ or less, enter (%) – more than $, but less than $, complete Worksheet B (on back) – $ or more, enter (%)			10
11	Multiply line 8 by line 10. New York City resident individuals – Continue on line 12 below. NYC part-year resident individuals: Stop; enter line 11 amount on Form IT-360.1, line 54. Estates and trusts: Stop; enter line 11 amount on Form IT-205, line 22			11
New York City full-year resident individuals
12	Amount from Form IT-201, line 49			12
13	Amount from Form IT-201-ATT, line 32			13
14	Amount from Form IT-201-ATT, line 33			14
15	Add lines 12, 13, and 14			15
16	Enter the lesser of line 11 or 15, and transfer the amount to Form IT-201-ATT, line 8			16
Worksheet A
1	Enter the amount from Form NYC-202, line 21, Form NYC-202EIN, line 21, or Form NYC-202S, line 8			1
2	Individuals: Enter the amount from Form IT-360.1, line 6, column B Trusts: Enter the amount from Form IT-205-A, Schedule 4, line 16, column C (see instructions)		2
3	Individuals: Enter the amount from Form IT-360.1, line 6, column A Trusts: Enter the amount from Form IT-205-A, Schedule 4, line 16, column A (see instructions)		3
4	Divide line 2 by line 3 and round the result to the fourth decimal place			4
5	Multiply line 1 by line 4. This is the part-year resident tax imposed on the unincorporated business. Estates and trusts: Include this amount (below) in Schedule A, Totals line, column D. All others: Transfer this amount to line 6 on the front page			5
Worksheet B
1	Base percentage %			1
2	Enter your taxable income from the front page, line 9		2
3	Base amount		3
4	Subtract line 3 from line 2		4
5	Divide line 4 by $ and round to the third decimal place		5
6	Multiply line 5 by			6
7	Subtract line 6 from line 1. Transfer this decimal amount to the front page, line 10			7
Schedule A (for estates and trusts only)
Fiduciary’s and beneficiary’s share of New York City unincorporated business tax
A Name and address of beneficiary		B Beneficiary’s identifying number	C Allocation percentage	D Beneficiary’s eligible unincorporated business taxes
Totals






Fiduciary

Computing the Credit — Step by Step

Step 1 – Enter the UBT paid or your share of UBT paid (Form NYC-202, line 21; for partners use Form NYC-204 share).
Step 2 – Determine your NYC city taxable income used for phase-out; compare it to the bands: ≤ $42,000, $42,001-$142,000, or ≥ $142,000.
Step 3 – Apply the appropriate percentage: 100 % if ≤ $42,000; sliding scale if between $42k and $142k; 23 % if ≥ $142k. Compute the credit (UBT paid × rate).
Step 4 – Enter the credit on line 16 of IT-219 and transfer to the appropriate line on your IT-201 or IT-203. Document your calculation and retain supporting forms, partnership statements, or trust allocations.

Example: As a full-year NYC resident individual, you paid UBT of $800. Your city taxable income is $50,000. Under the phase-out band you compute the rate (per instructions worksheet) which results in, say, 80 %. The credit is $800 × 80% = $640. You enter $640 on IT-219 and carry to your IT-201. Because your credit is less than your tax, you use the full credit; you cannot carry over the unused portion.

Audit risks: Common audit triggers include incorrectly referencing the UBT paid by a partnership, using full-year residence when part-year resident, incorrectly computing your city taxable income base for the band, and failing to attach Schedule A/Worksheet A. Ensure your residency period and income figures align with NYC return and partnership allocations.

Last reviewed: 2025-10-29: If you believe this form requires an update, please contact us.

Planning & Compliance Notes

Keep detailed records of the UBT paid or allocated, partnership or trust allocations, and your NYC tax return showing city taxable income. If you are shutting down or changing business structure, coordinate the UBT payment date and your residency period to maximise the available credit.

If you were a partner in multiple entities with UBT exposure, aggregate your UBT payments and apply the phase-out correctly across all business share payments. Review whether the credit yields benefit or whether residual unused UBT payment might be better restructured within business planning.

For part-year NYC residents, maintain documentation showing start and end dates of NYC residence (lease, utility bills, employer records) and complete Worksheet A to derive the prorated credit. Mis-dating residency or using full-year calculations is a frequent adjustment by NYC/NY DTF.

Quick Access Tools

Frequently Asked Questions

Does IT-203-ATT replace IT-112-R or IT-112-C?

No. Those forms calculate credits for taxes paid to other jurisdictions, and their totals are then entered onto IT-203-ATT where indicated.

How much income can be excluded on IT-221?

You may exclude up to $5,000 ($10,000 for joint filers) of qualifying disability income, reduced by any NY pension or annuity exclusion previously claimed.

Can part-owners of a property claim IT-119?

Yes — if the notice issued reflects the property key and entity ownership, each owner must enter their share of the underpayment on IT-119 and may attach separate forms as required.

Can I use IT-203-B to claim the NY College Tuition Deduction?

Yes. Part 2 of IT-203-B calculates the allowable college tuition itemized deduction or credit, depending on your AGI and tuition amounts paid.

Are HSA contributions deductible for New York tax?

No—unlike the federal system, New York does not allow an HSA deduction.

Important Notes

All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.