Form IT-2104-SNY: Certificate of Exemption from Withholding for START-UP NY Program (Tax Year 2026)

Form IT-2104-SNY is the certificate New York State employees use to claim exemption from state, and where applicable New York City or Yonkers, income tax withholding under the START-UP NY program. The New York State Department of Taxation and Finance issues this form specifically for the 2026 tax year, and it applies only to wages that qualify under the START-UP NY tax elimination benefit.

START-UP NY (the SUNY Tax-free Areas to Revitalize and Transform New York initiative) allows certain businesses partnered with universities and colleges to operate tax-free, and employees of those approved businesses may also receive personal income tax benefits on wages earned from that qualifying employment. Form IT-2104-SNY is how an eligible employee tells their employer to stop withholding New York income tax on the portion of wages covered by the program.

This is not a general-purpose withholding form. It’s a narrow, program-specific exemption certificate, similar in structure to other specialized New York withholding forms like the IT-2104-IND for enrolled tribal members or the IT-2104-MS for military spouses. Each of these forms exists because a specific group of taxpayers has a legal basis to be excluded from standard withholding rules, and the state requires documentation before an employer can legally stop withholding.

Who Needs to File Form IT-2104-SNY

You need this form if you are employed by a business approved to participate in the START-UP NY program and your wages qualify for the associated personal income tax benefit. Not every employee at a START-UP NY business automatically qualifies — eligibility depends on factors like whether your position is considered a net new job created because of the business’s participation in the program, and whether the employer has confirmed your role meets the program’s criteria.

If your employer confirms that your position qualifies, you complete IT-2104-SNY and give it directly to your employer, not to the Tax Department. Your employer keeps it on file and uses it to adjust your withholding going forward. If your employment situation changes, or if the business’s START-UP NY status changes, you may need to file a new form or your employer may resume standard withholding.

When to Use This Form

Employees typically complete this form when they start a position that has been designated as eligible under START-UP NY, or at the start of a new tax year when the program’s benefit period is still active for their employment. Since this version is specifically labeled for tax year 2026, it should be used for wages and withholding periods within that year. Because START-UP NY benefits are tied to specific timeframes tied to the business’s agreement with the state, employees should confirm with their employer or the Tax Department whether their exemption is still valid before assuming it carries over indefinitely.

How to Get and Complete the Form

The form is available as a fillable PDF directly from the New York State Department of Taxation and Finance website. Because it supports digital entry, you can type your information directly into the fields rather than filling it out by hand, then print it for signature and submission to your employer.

Completing it involves basic identifying information — your name, Social Security number, and address — along with certification details connecting you to the qualifying START-UP NY employer and position. Your employer may need to verify or co-sign certain sections confirming that your job meets program requirements, so it’s worth checking with your HR or payroll department before submitting anything.

Employees dealing with other state-level compliance questions, including situations involving prior tax issues or agreements with a state tax agency, may also want to look at resources like the FTB Form 5841-PC compliance agreement guide, which explains a different but related process for resolving state filing obligations.

Keep a copy of the completed and signed form for your own records even after submitting it to your employer, since you may need to reference it if your withholding status is questioned in a future tax filing.