Self-employed taxes and LLC costs in New York, 2026
New York makes a new LLC announce itself in two newspapers, then taxes the profit at the state level and, inside the five boroughs, again at the city level.
Total tax on this income in 2026
$21,469
Put aside 25% of each payment · $5,367 per quarter
| Self-employment tax (15.3%) | $12,010 |
| Federal income tax | $5,790 |
| New York income tax | $3,669 |
| QBI deduction used | $12,579 |
| Effective rate on all income | 25.3% |
With an S corp election and a $34,000 salary, about $3,099 less tax (check it).
Computed by Radif Partners from IRS and New York agency documents read on October 15, 2026 · How we calculate
Forming an LLC in New York costs $200 for the Articles of Organization, then a $50 Certificate of Publication once the company has run its notice in two newspapers, which are paid separately. After that the state asks for a $9 biennial statement and a $25 yearly filing fee for a single-member LLC, so the state cost is about $398 over five years before newspaper bills. Profit is taxed at state rates from 3.9 % to 10.9 %: a single filer with $75,000 of profit owes about $3,167 to the state and $18,662 in total, before any New York City tax. The S election needs its own New York filing and carries a $25 fixed minimum at low receipts; at $120,000 of profit and a $50,000 salary it saves about $4,603 a year outside the city. New York City does not recognize it at all.
New York at a glance, 2026
| LLC filing fee | $200 |
| Biennial Statement | $9 every two years |
| LLC filing fee, Form IT-204-LL (single-member) | $25 a year |
| Income tax | 3.9 % to 10.9 % |
| S corporation election | followed, with exceptions |
| Tax on $75,000 of profit (single) | $18,662 in all, $3,167 to New York |
Within 120 days of filing its Articles, a New York LLC must publish a notice of formation in two newspapers once a week for six consecutive weeks, then file a Certificate of Publication with the Department of State; a company that skips this loses its authority to carry on business in the state until it complies (NY DOS, forming an LLC). The $50 filing fee is small. The newspaper bills are not, and they vary so much by county that this page does not estimate them.
A rate cut in the lower brackets
For 2026, the five lowest state brackets drop to 3.9 %, 4.4 %, 5.15 %, 5.4 % and 5.9 %, each a little lower than in 2025 (IT-2105 instructions, 2026). A single filer pays 5.9 % on taxable income from $80,650 and 6.85 % from $215,400. Above $107,650 of New York AGI, a recapture rule phases out the benefit of the lower brackets, so higher earners end up paying their top rate on all of their income. On $250,000 of profit, the state share for a single filer is about $12,950.
Estimates are required when you expect to owe at least $300 of New York State, City or Yonkers tax after withholding, and the four payments, with any city tax and the commuter transportation tax, go on one voucher, IT-2105 (IT-2105 instructions).
The city and the commuter district
A sole proprietor or single-member LLC doing business in New York City also owes the Unincorporated Business Tax, 4% of net business income, with an exemption and a credit that cancel it for smaller businesses, plus city personal income tax for residents. The New York City page works through both. Across the Metropolitan Commuter Transportation District, which includes the city and seven nearby counties, self-employment earnings above $150,000 allocated to a zone carry the MCTMT, 0.6% in the city and a lower rate in the suburban counties.
Why an S corp works differently in the five boroughs
The federal S election does not carry over automatically: a New York S election is made separately on Form CT-6, and the corporation then pays a fixed dollar minimum based on its New York receipts, $25 at the bottom of the scale, which replaces the LLC's $25 fee in the calculator. Inside the city, the S election is ignored entirely. A federal S corporation doing business there pays the city's General Corporation Tax, the highest of 8.85% of net income, a tax on capital or a fixed minimum (NYC Finance, General Corporation Tax). That can erase much of the payroll saving, which is why the LLC vs S corp comparison for a New York City business has to include it. New York also offers an elective pass-through entity tax for partnerships and New York S corporations, chosen each year by March 15; its graduated rates were not read today. For a calm neighbor, see New Jersey.
New York income tax brackets
| Taxable income, single | Rate | Taxable income, joint | Rate |
|---|---|---|---|
| $0 to $8,500 | 3.9 % | $0 to $17,150 | 3.9 % |
| $8,500 to $11,700 | 4.4 % | $17,150 to $23,600 | 4.4 % |
| $11,700 to $13,900 | 5.15 % | $23,600 to $27,900 | 5.15 % |
| $13,900 to $80,650 | 5.4 % | $27,900 to $161,550 | 5.4 % |
| $80,650 to $215,400 | 5.9 % | $161,550 to $323,200 | 5.9 % |
| $215,400 to $1,077,550 | 6.85 % | $323,200 to $2,155,350 | 6.85 % |
| $1,077,550 to $5,000,000 | 9.65 % | $2,155,350 to $5,000,000 | 9.65 % |
| $5,000,000 to $25,000,000 | 10.3 % | $5,000,000 to $25,000,000 | 10.3 % |
| over $25,000,000 | 10.9 % | over $25,000,000 | 10.9 % |
City and county taxes on business income in New York
| Place | Tax | Rate | Who pays |
|---|---|---|---|
| New York City | Unincorporated Business Tax (UBT) | 4% | Return required only if total business gross income exceeds $95,000; $5,000 exemption against net income; full credit if tax is $3,400 or less, partial credit between $3,400 and $5,400, no credit at $5,400 or more. NYC residents also get a partial credit against NYC personal income tax. |
| New York City | NYC resident personal income tax | 3.876% | Single brackets: 0 / 12,000 / 25,000 / 50,000; MFJ: 0 / 21,600 / 45,000 / 90,000 (2026) |
| Yonkers | Yonkers resident income tax surcharge | 16.75% | Yonkers residents: 16.75% of net New York State tax |
| Yonkers | Yonkers nonresident earnings tax | 0.5% | Exclusion amount applies (not detailed here) |
| Metropolitan Commuter Transportation District (NYC + Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, Westchester) | MCTMT on net earnings from self-employment | 0.6% | Only if net earnings from self-employment allocated to the zone exceed $150,000 (individual basis) |