As a sole proprietor living in NYC, can I allocate my income between NYC-based clients and non-NYC based clients for determining Unincorporated Business Tax liability?

I'm a sole proprietor living in NYC, where I conduct all of my business (consulting services). However, my main client is based in another state and pays me from that other state. Can I allocate my income between income generated from NYC-based clients and non-NYC based clients for determining UBT liability? Or am I subject to the UBT on all of my income since I physically conduct all of my business in NYC? Thanks in advance for anyone who has insight on this.

976

Expert Alumni

Mar 29, 2025 9:44:13 AM

You would be subject to the unincorporated business tax on receipts for services based on where you did the work. It would no matter that your client is in another city, you would pay the tax based on where you did the work, in New York City in this instance.

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As a sole proprietor living in NYC, can I allocate my income between NYC-based clients and non-NYC based clients for determining Unincorporated Business Tax liability?