New York Small Business Tax Guide — 2026
Income Tax Rate
4% — 10.9% state + NYC 3.078% — 3.876% (progressive)
Sales Tax Rate
4% state + local (total typically 7% — 8.875%)
Filing Deadline
April 15 (matches federal deadline)
New York Income Tax
New York imposes a state income tax with rates of 4% — 10.9% state + NYC 3.078% — 3.876% (progressive). Self-employed individuals, freelancers, and sole proprietors pay this tax on their net business income in addition to federal income tax and federal self-employment tax (15.3%).
Self-Employment in New York
New York state taxes self-employment income at progressive rates up to 10.9%. New York City residents face an additional 3.078% — 3.876% city income tax. Combined NYC rate can exceed 14%.
Estimated Tax Requirements
Quarterly estimated payments required if you expect to owe $300 or more. Standard federal due dates apply.
New YorkDeductions & Credits
- New York standard deduction: $8,000 (single) / $16,050 (married filing jointly)
- New York does not conform to the QBI deduction
- NYC Unincorporated Business Tax (4%) for self-employed earning over $95,000
- Pass-through entity tax election available
Business Filing Fees
LLC: $200 formation + $9 biennial statement + publication requirement ($300 — $2,000). Corporation: $125 formation + biennial statement.
Key Facts About New York Taxes
- Combined NYC + state income tax rate can exceed 14% for high earners
- NYC's Unincorporated Business Tax (4%) applies to self-employed with $95K+ income
- LLC publication requirement in NYC can cost $300 — $2,000
- New York does not conform to the federal QBI deduction
- New York City has the highest combined tax burden for freelancers in the U.S.
Track Your New York Business Expenses
TaxTidy helps New York freelancers and self-employed individuals track every business expense with AI-powered receipt scanning. Snap a photo of any receipt and TaxTidy instantly extracts the vendor, amount, and tax category — then maps it to the correct IRS Schedule C line. At tax time, generate an audit-ready PDF report with all your deductions organized and totaled.
Frequently Asked Questions
What is the total New York City tax rate for freelancers?
NYC freelancers face state tax (up to 10.9%), city tax (up to 3.876%), and the Unincorporated Business Tax (4% on income over $95K). Combined with federal taxes, the total effective rate can exceed 50%.
What is NYC's Unincorporated Business Tax?
The UBT is a 4% tax on net self-employment income over $95,000 for NYC residents. It's unique to NYC and applies on top of state and city income taxes.
Does New York allow the QBI deduction?
No. New York does not conform to the federal Section 199A QBI deduction. You cannot deduct up to 20% of qualified business income on your New York return.
When are New York estimated taxes due?
Quarterly on April 15, June 15, September 15, and January 15. Required if you expect to owe just $300 or more.
Official source: New York Department of Revenue
TaxTidy provides expense organization tools based on the most current US tax law available to it. TaxTidy is not a CPA, Enrolled Agent, or licensed tax professional. All categorizations, deductions, and tax calculations are estimates. Please verify all data for accuracy and consult a certified tax professional before filing.
Start Tracking Your New York Business Expenses
Free to start — first 25 scans, lifetime. AI categorization, Schedule C mapping, and your personal Audit Readiness Score.
Get Started Free