October 10, 2023 | Payment Plans
Ways to Pay New York State Taxes and Consequences if You Don’tYou may have more options for paying your New York State tax bill than you realize. Whichever option you choose, don’t wait too long. Here’s what you should know. Paying your New York State taxes on time is essential, but knowing how to make a payment or figuring out what to do if you can’t pay in full isn’t always easy. Thankfully, the New York State Department of Tax and Finance (DTF) offers several options for NY taxpayers, including convenient online payment processing and installment agreements. Keep reading for an overview of how to pay your NYS taxes.
How Do I Pay My New York State Tax?Taxpayers can find helpful resources and access online services at tax.ny.gov. Through New York State’s online services, individual taxpayers can make a payment or request an installment agreement (more on that below). To pay your tax bill this way, you need to create a NY.gov ID if you do not already have one. You can create an account in a few easy steps:
- Visit my.ny.gov, and choose to create an account.
- Choose whether you are creating an individual, business, or employee account.
- Fill out your name and email address.
- Create a username, and verify your email address.
- Create a password, and choose your security questions.
How Individuals Can Pay NYS Taxes OnlineUsing the online services portal isn’t the only way to pay NYS taxes online. You can also pay your bill online via a direct debit from your bank account. When paying with your bank account, you can schedule advance payments and save your banking information for future payments. Best of all, this payment option is free. You can also use your credit card to pay your NYS taxes online. However, you will be charged a 2.2% convenience fee when doing so. That means you’ll pay an additional $22 for every $1,000 you pay NYS, but the process is quick and simple. Wells Fargo provides credit card payment processing services for the NYS DTF, and the company accepts Visa, Mastercard, Discover, and American Express.
How Businesses Can Make a NYS Tax Payment OnlineBusinesses must use a different online services account than individuals, but the features are very similar. With a business online services account, you can schedule New York State tax payments (including sales tax, withholding tax, and corporate tax), respond to notices from the DTF, and file your business tax returns.
Other Ways to Make a NYS Tax PaymentWhile making NYS tax payments online may be the most popular payment option, it isn’t the only one. Taxpayers may also pay income tax by check or money order and send the payment to the Department of Tax and Finance. However, when mailing a payment for your New York State taxes owed, you must also include Form IT-201-V. Additionally, you must follow the payment instructions carefully to ensure your payment gets credited correctly. Keep the following tips in mind:
- You must make the check or money order payable to New York State Income Tax.
- You must include your Social Security number, the tax year for which the payment corresponds to, and the words “income tax” on your check or money order.
Making NYS Estimated Tax PaymentsMany NYS taxpayers can make estimated payments online, but this option isn’t available to everyone. If using one of the below forms, you will need to make your NYS estimated tax payments via check or money order.
- Form IT-2658 Report of Estimated Tax for Nonresident Individual Partners and Shareholders
- Form CT-2658 Report of Estimated Tax for Corporate Partners
- Individuals can make an estimated tax payment through NYS-approved tax software.
- You can make a payment through your NYS online services account.
- Direct debit online payments are available and free of charge.
- Online credit card payments are available but come with a convenience fee.
If You Owe State Taxes but Can’t PayIt’s important to address your New York State tax bill, even when you can’t pay the amount you owe in full. Taxpayers who fail to pay can face costly penalties and interest charges. For example, the late payment penalty is 5% for every month (or partial month) the payment is late, and this penalty can grow to 25% of your balance if your taxes remain unpaid. But late payments aren’t the only things that can cost you. There are penalties for other mistakes, too.
- If you incorrectly calculate your tax owed, you could face a penalty of 10% of the difference between the NYS tax reported and what you actually owe.
- Underreporting tax — even by accident — can result in financial penalties and interest charges.