Commercial Rent Tax

The following do not have to pay CRT:

Manhattan tenants south of 96th Street who pay an annual rent at least $250,000 but who:

• Use the space for theatrical productions for fewer than 52 weeks; or
• Have a short rental period of 14 days or less during the tax year; or
• Pay less than $250,000 in annual rent;
• Rent at least 75% of the space to others for residential purposes;
• Are a governmental or a not-for-profit religious, charitable or educational organization;
• Are another type of not-for-profit organizations that use the space for reasons other than commercial activity and have received a written tax exemption from the Department of Finance; or
• Are located in a zone designated as an abatement zone.
• Other exemptions may apply.

Generally, no payment is required from taxpayers who are exempt from tax, however taxpayers meeting certain criteria must still file an annual return even though not subject to tax.

You must use one of the following forms to file the Commercial Rent Tax.

• CR-A (annual) 
• CR-Q (quarterly)

Get CRT forms.

Tenants must file CRT returns quarterly. Annual returns must also be filed.

You are not required to file a return (either quarterly or annual) if:

• The annual gross rent paid is less than $200,000, and the rent received from a subtenant is less than $200,000

An annual return (CR-A) is required to be filed by every tenant, on or before June 21, covering the preceding year from June 1 to May 31. Every tenant subject to tax for a period must file a quarterly return (Form CRQ).

Quarterly returns are due for the three-month periods ending on the last days of August, November and February of each tax year and must be filed within 20 days after the end of the period they cover.

If you file your quarterly return late, you will be charged interest on the amount you haven't paid. Interest will accrue starting from the due date until either:

• 20 days after the end of the tax year, or
• The date as of which the amount paid for the tax year is 75% of the full tax required to be paid for the tax year. 
• Whichever date is earlier.

You must pay the interest with the annual return. From January 1, 2022 to March 31, 2022, the interest rate is 7.5%. You don't have to pay interest that is less than $1.

You must file for a Commercial Rent Tax refund within 18 months of the due date for filing the return or six months from the time the tax was paid, whichever is later.

The Department of Finance doesn't pay interest on Commercial Rent Tax refunds.

To request a refund, you have to file another return, checking off the "Amended Return" box. Show all the adjustments and indicate the amount of the refund in the "Overpayment" box on the return and mail to the address indicated on the form.

Get CRT forms.

Duplicate Payments

If you mistakenly paid more than once for a filing period, you can request a refund by writing a letter.

Tenants with annual rents between $250,000 and $300,000 are eligible for a sliding-scale tax credit.

Beginning  on June 1, 2018, taxpayers may claim the Small Business Tax Credit. The credit effectively exempts tenants with “Total Income” as defined below of $5,000,000 or less AND annual “Base Rent Before Rent Reduction” of less than $500,000 from the Commercial Rent Tax.

Other taxpayers with “Total Income” of more than $5,000,000 but less than $10,000,000 and annual “Base Rent Before Rent Reduction” of less than $550,000 receive a sliding scale credit against the tax.

Taxpayers with “Total Income” equal to or more than $10,000,000 OR annual “Base Rent Before Rent Reduction” equal to or more than $550,000 are not eligible for this credit.

Taxpayers with multiple premises and “Total Income” of less than $10,000,000 may be eligible for this credit with respect to some of their premises while ineligible with respect to others.

You can get answers to questions about the tax or help with filing and paying.