The full New York self-employment tax picture
| Tax type | Rate | Applies to |
|---|---|---|
| Federal SE tax | 15.3% of net profit × 0.9235 | All NY self-employed workers |
| Federal income tax | 10–37% depending on income | All NY self-employed workers |
| NY state income tax | 4%–10.9% depending on income | All NY state residents |
| NYC city income tax | 3.078%–3.876% | NYC residents (5 boroughs) only |
| MCTMT | 0.34% of net SE earnings | Metro area residents earning $50,000+ SE income |
NYC residents who are self-employed face some of the highest combined tax rates of any metropolitan area in the US. Understanding each layer is essential to setting aside the right amount — most people are surprised by how quickly the combined percentage adds up.
New York state income tax brackets (2025)
| Taxable income (single) | NY state rate |
|---|---|
| $0 – $17,150 | 4% |
| $17,151 – $23,600 | 4.5% |
| $23,601 – $27,900 | 5.25% |
| $27,901 – $161,550 | 5.85% |
| $161,551 – $323,200 | 6.25% |
| $323,201 – $2,155,350 | 6.85% |
| $2,155,351 – $5,000,000 | 9.65% |
| $5,000,001 – $25,000,000 | 10.3% |
| Over $25,000,000 | 10.9% |
Most New York freelancers earning $30,000–160,000 in taxable income land in the 5.85% bracket for state income tax. That's on top of federal taxes.
NYC city income tax — an extra layer for city residents
If you live in any of the five boroughs (Manhattan, Brooklyn, Queens, the Bronx, Staten Island), you pay New York City income tax in addition to NY state tax:
| NYC taxable income (single) | NYC tax rate |
|---|---|
| $0 – $12,000 | 3.078% |
| $12,001 – $25,000 | 3.762% |
| $25,001 – $50,000 | 3.819% |
| Over $50,000 | 3.876% |
Commuters are exempt: The NYC income tax applies to residents of NYC, not to people who commute into the city to work. If you live in New Jersey, Long Island, Connecticut, or Westchester and your client is in Manhattan, you do not owe NYC income tax. Only where you live matters for city tax purposes.
- →The full New York self-employment tax picture
- →New York state income tax brackets (2025)
- →NYC city income tax — an extra layer for city residents
- →The MCTMT — the tax most NY freelancers don't know about
- →Real example: NYC freelancer, $60,000 net profit
- →New York quarterly estimated tax payments
- →The New York LLC publication requirement — a costly surprise
- →Frequently asked questions
- →The bottom line
The MCTMT — the tax most NY freelancers don't know about
The Metropolitan Commuter Transportation Mobility Tax (MCTMT) is an additional 0.34% tax on net self-employment earnings for people in the NYC metro area who earn over $50,000 from self-employment. It applies to residents of:
- New York City (all five boroughs)
- Nassau, Suffolk, Westchester, Rockland, Orange, Putnam, and Dutchess counties
On $70,000 in net SE earnings, that's an additional $238/year. Small but real — and often overlooked because it doesn't appear on the main NY state return. It's filed separately on Form IT-204-LL or included in IT-2105 estimated payments.
Real example: NYC freelancer, $60,000 net profit
| Tax | Calculation | Amount |
|---|---|---|
| Federal SE tax | $60,000 × 0.9235 × 15.3% | $8,478 |
| SE deduction | $8,478 × 50% | −$4,239 |
| Federal standard deduction | Single 2025 | −$15,000 |
| Federal income tax | 10/12% brackets on ~$41,161 | ~$4,786 |
| NY state income tax | ~5.85% effective on NY taxable income | ~$2,800 |
| NYC city income tax | ~3.8% on NYC taxable income | ~$1,750 |
| MCTMT | $60,000 × 0.34% (if $50k+ SE income) | ~$204 |
| Total tax (NYC resident) | ~$18,018 |
Effective rate for an NYC resident: ~30% of net profit. With $8,000–12,000 in legitimate deductions, that drops to 25–27%. A similar earner in Texas would pay roughly $13,000–13,500 total — a $4,500–5,000 annual difference purely from geography.
New York quarterly estimated tax payments
New York state requires estimated payments if your expected state tax liability exceeds $300 for the year. Pay through the NY Department of Taxation and Finance at tax.ny.gov using Form IT-2105. The schedule mirrors federal:
- April 15 — Q1 payment
- June 15 — Q2 payment
- January 15 — Q4 payment
Pay federal (IRS.gov/payments) and New York state (tax.ny.gov) separately. They're completely separate agencies and payments — sending money to one does not credit the other.
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Check my NY hustle — free →The New York LLC publication requirement — a costly surprise
New York has a unique requirement that catches many new LLC owners off guard: you must publish a notice of your LLC's formation in two designated newspapers in the county where your LLC is located, once a week for six consecutive weeks.
In most counties, this costs $50–200 total. In New York City, newspaper rates are dramatically higher — the publication requirement can cost $300–2,000+ in NYC depending on the county and newspapers used. After completing publication, you file a Certificate of Publication with the NY Department of State within 120 days.
Failing to complete publication doesn't void your LLC, but it does suspend your ability to bring a lawsuit in New York courts. It's not optional.
Tip: If you're forming a New York LLC, some formation services handle the publication requirement or refer you to lower-cost publication options. Factor the publication cost into your LLC formation budget — in NYC, the total LLC setup cost including filing fee ($200) and publication can run $500–2,200.
Frequently asked questions
What is the self-employment tax rate in New York?
Federal SE tax (15.3%) applies to all self-employed workers. New York adds state income tax at 4%–10.9%, and NYC residents add city income tax of 3.078%–3.876%. Combined effective rates for NYC freelancers commonly reach 35–42%.
Do NYC freelancers pay city income tax?
Yes — if they live in one of the five boroughs. NYC city tax runs 3.078%–3.876% depending on income. Commuters who live outside NYC are not subject to city tax.
What is the MCTMT tax for New York freelancers?
An additional 0.34% tax on net SE earnings over $50,000 for self-employed workers in the NYC metro area (NYC plus Nassau, Suffolk, Westchester, Rockland, Orange, Putnam, and Dutchess counties).
Do New York freelancers need to pay quarterly taxes?
Yes — federal (IRS.gov/payments) and NY state (tax.ny.gov) separately. Both follow the April 15 / June 15 / September 15 / January 15 schedule.
Does New York have an LLC publication requirement?
Yes. New York requires LLCs to publish a formation notice in two newspapers for six weeks. This costs $50–200 in most counties but $300–2,000+ in NYC. Failing to complete it suspends your right to sue in NY courts.
The bottom line
New York — and especially New York City — has one of the highest combined tax burdens for self-employed workers in the country. Federal SE tax, NY state income tax, NYC city tax, and the MCTMT can combine to an effective rate of 35–42% for a typical NYC freelancer. The LLC publication requirement is an additional cost and complexity that doesn't exist in most other states.
Set aside 35–40% of net self-employment income if you're an NYC resident. Pay both the IRS and the NY Department of Taxation quarterly. And if you're forming a New York LLC, budget for the publication requirement — it's mandatory, not optional, and the cost in NYC is real.
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