Question 1

Is there a local income tax in New York?

Accepted Answer

Yes. New York City resident personal income tax is 3.876% for residents and 0% for nonresidents (effective Graduated rates from the 2025 Form IT-201 instructions (latest published schedule; New York had not posted 2026 tax tables as of October 7, 2026)). NYC residents owe the city tax on their total taxable income, including net self-employment and 1099 income, filed on the New York State return (Form IT-201) at graduated rates of 3.078% to 3.876%. Nonresidents who only work in the city do not owe NYC personal income tax (only residents and part-year residents are listed as subject).

Question 2

What local business taxes apply to self-employed self-employed people in New York?

Accepted Answer

NYC Unincorporated Business Tax (UBT): Sole proprietors, freelancers, and other unincorporated businesses that carry on business wholly or partly in NYC must file a UBT return if total gross income from all business exceeds $95,000. The tax is 4% of taxable business income after a $5,000 exemption and an allowance for the owner's services (the lesser of 20% of net income or $10,000); a business tax credit wipes out the tax when it is $3,400 or less and phases out completely at $5,400. Metropolitan Commuter Transportation Mobility Tax (MCTMT), self-employed: Self-employed people with net earnings attributable to Zone 1 (the five NYC counties) above the threshold pay MCTMT on their New York income tax return. The threshold is $150,000 for tax year 2026 and later (it was $50,000 through 2025); the 2025 instructions set the Zone 1 rate at 0.60% of Zone 1 net earnings.

Question 3

What New York rules protect gig workers and freelancers?

Accepted Answer

NYC delivery worker minimum pay rate (restaurant and grocery apps): Restaurant and grocery delivery apps such as Uber Eats, DoorDash, Grubhub, Instacart, and Shipt must pay delivery workers at least $22.13 per hour before tips, starting with the first pay period on or after April 1, 2026 (up from $21.44); the rate is adjusted for inflation each year. Other kinds of delivery apps are not yet covered, and DCWP says it will set a minimum pay rate for all delivery apps in early 2027. TLC minimum pay standard for high-volume for-hire (Uber/Lyft) drivers: Rates effective March 1, 2026 are $1.283 per mile plus $0.681 per minute for non-wheelchair-accessible trips and $1.601 per mile plus $0.681 per minute for wheelchair-accessible trips. The portion of a trip outside New York City pays more: $1.757 per mile (non-WAV) or $2.193 per mile (WAV) plus $0.725 per minute. This is a per-trip pay floor, not an hourly wage. NYC Freelance Isn't Free Act: Hiring parties must give freelancers a written contract for work worth $800 or more, including all work totaling $800 in any 120-day period, and must pay by the contract date or within 30 days after the work is done. Freelancers who are not paid on time can collect double damages plus attorneys' fees, and retaliation is illegal.

Question 4

Do self-employed people in New York pay state income tax?

Accepted Answer

New York has a graduated state income tax for 2026: 3.9% to 10.9% (top rate starts at $25,000,000 for single filers). 2026 single schedule: 3.9% to $8,500; 4.4% to $11,700; 5.15% to $13,900; 5.4% to $80,650; 5.9% to $215,400; 6.85% to $1,077,550; 9.65% to $5,000,000; 10.3% to $25,000,000; 10.9% above. NYC residents also pay NYC income tax of 3.078% to 3.876% (single, top rate over $50,000). Yonkers residents pay a surcharge.

Question 5

When are New York estimated tax payments due for 2026?

Accepted Answer

You must pay estimated tax if you expect to owe at least $300 of New York State, New York City, or Yonkers tax for 2026 after withholding and credits. Self-employed people subject to the MCTMT must also pay estimated MCTMT. Same dates as federal (April 15, June 15, September 15, 2026 and January 15, 2027). Farmers and fishermen have one installment, due January 15. The state form is IT-2105.

Question 6

Are there other New York taxes for self-employed self-employed people?

Accepted Answer

Metropolitan Commuter Transportation Mobility Tax (MCTMT) on self-employment earnings: Applies to self-employed people (including partners and members of LLCs treated as partnerships) whose net earnings from self-employment allocated to a zone of the MCTD exceed $150,000. The MCTD is NYC plus Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and Westchester counties. Rate: 0.60% in Zone 1 (NYC) and 0.34% in Zone 2. No credits can offset it. LLC annual filing fee (Form IT-204-LL) for single-member LLCs: A single-member LLC treated as a disregarded entity with any New York-source income, gain, loss, or deduction owes a flat $25 filing fee on Form IT-204-LL (per the 2025 instructions, the latest published). It is due by the 15th day of the third month after the tax year ends (March 15 for calendar years). New York City Unincorporated Business Tax (city-level, NYC only): NYC charges 4% on unincorporated business income (sole proprietors, LLCs, partnerships) allocated to the city. A liability of $3,400 or less is fully credited, and liabilities from $3,401 to $5,400 get a partial credit. NYC-resident sole proprietors can claim a partial credit against NYC personal income tax.

Self-employed in New York, NY: taxes and retirement for 2026

Guides for New York

New York local rules

New York rules that apply in New York

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