New York tax guide

New York taxes for self-employed workers in 2026

In New York you can owe state, city, and transit taxes on the same income. Here's who has to make estimated payments and which extra taxes can apply.

Published by Cadus Labs LLC · Last updated November 9, 2026 · How we write these guides

Based on the 2026 Form IT-2105 instructions and New York City Department of Finance guidance.

New York estimated tax payments for 2026

You generally have to 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. New York City and Yonkers tax go on the same voucher as state tax.

The form is Form IT-2105, and you can generally pay online instead of mailing it.

2026 New York estimated tax payment dates for calendar-year filers
Payment due	Share of the year's required payment
April 15, 2026	25%
June 15, 2026	25%
September 15, 2026	25%
January 15, 2027	25%

If a due date falls on a weekend or legal holiday, the payment is due the next business day.

The transit tax on higher earners

The Metropolitan Commuter Transportation Mobility Tax applies to self-employed people doing business in the New York City commuter district. For 2026 it applies only when your net earnings from self-employment allocated to a zone exceed $150,000. The rate is 0.60% for the five boroughs and 0.34% for the suburban counties in the district.

New York City's unincorporated business tax

New York City charges a 4% tax on the taxable income of unincorporated businesses allocated to the city, and that can include sole proprietors. A credit wipes out a liability of $3,400 or less, and a partial credit applies between $3,401 and $5,400, so many smaller businesses end up owing nothing.

City residents can also claim a credit against their New York City personal income tax for part of the business tax they pay as sole proprietors. Working as an employee isn't subject to this tax.

Your federal tax comes first

Wherever you live, self-employed income is subject to federal income tax and self-employment tax. A single filer with $60,000 of net profit and no other income owes about $12,037 in federal tax for 2026, or 20% of profit, before any state or local tax.

Federal estimated payments are due April 15, June 15, and September 15, 2026, and January 15, 2027. Use our 1099 tax calculator to run your own numbers.

Recordkeeping checklist

Set aside for federal and state tax from every payment you receive.

Make federal and state estimated payments if you expect to owe enough.

Keep receipts and a mileage log for everything you deduct.

If you work in New York City, work out whether the business tax applies to you.

Free tools for this

Calculator

1099 and Self-Employment Tax Calculator

Enter your 1099 income and business expenses to estimate self-employment tax, federal income tax, and what to set aside each quarter. No sign-up, and nothing you type is saved.

Calculator

Quarterly Tax Set-Aside Calculator

Turn expected profit into a practical tax savings target, then use Cadus to keep income, expenses, deductions, receipts, and reports organized.

Template

Quarterly Tax Savings Worksheet

Use this worksheet to turn expected monthly profit into a practical tax savings target before estimated tax due dates arrive.

Template

Business Expense Log Template

Copy this table to start organizing business purchases, receipt proof, categories, and business purpose before moving records into Cadus.

Official sources

NY Tax Department: 2026 IT-2105 instructions NYC Finance: unincorporated business tax

Related guides

Self-employment tax guide

Self-Employment Tax

The self-employment tax rate is 15.3%. See who pays, how the 2026 wage base works, the deduction for half the tax, and a worked example.

Estimated tax guide

Quarterly Estimated Taxes

2026 estimated tax due dates, who has to pay, how to avoid the penalty, and a worked example for a self-employed worker earning $60,000.

Schedule C education

Schedule C Expense Categories

Every Schedule C expense line in plain English: what goes on each one, what doesn't, and the records to keep for self-employed workers.

New York Taxes FAQ

When do I have to pay New York estimated tax?

Generally when you expect to owe at least $300 of New York State, New York City, or Yonkers tax after withholding and credits.

Do freelancers in NYC pay the unincorporated business tax?

It can apply. The rate is 4% of taxable income allocated to the city, but a liability of $3,400 or less is fully offset by a credit.

Does the MCTMT apply to me?

For 2026 it applies to self-employed people in the commuter district whose net earnings allocated to a zone exceed $150,000.

Cadus educational content is not tax, legal, or accounting advice. Tax rules can change, and individual facts matter. Review official guidance or speak with a qualified tax professional before filing.