Self-employment tax in New York
New York freelancers pay federal self-employment tax, federal income tax, and New York State income tax on top (NYC residents may also owe a city income tax). Plan for all layers so quarterly taxes don't surprise you.
What a New York freelancer owes
- Federal self-employment tax of 15.3% (Social Security + Medicare).
- Federal income tax on your net profit.
- New York State income tax from 4% up to 10.9% (NYC residents also pay a separate city income tax).
Estimate your New York taxes
Free 1099 self-employment tax calculator — add New York's 4%–10.9% state rate. No sign-up.
Enter New York's 4%–10.9% in the State Tax field for a full estimate.
States with no income tax are set to 0%. Estimate only — adjust for local taxes.
Estimates use 2026 US federal figures (IRS Rev. Proc. 2025-32): self-employment tax of 15.3% (12.4% Social Security up to the $184,500 wage base + 2.9% Medicare) plus federal income tax on your net profit after the standard deduction. State and local taxes are only included if you set a state rate above. Simplified estimate for planning only — not tax advice.
Guide: Self-employment tax in New York — three layers to plan for
New York self-employed workers face the most layered tax picture in the country: a federal bill, a state bill, and — if you live in New York City — a city bill on top. None of the three is optional, and each runs on estimates you pay during the year.
The federal layer is the same everywhere: self-employment tax of 15.3% on 92.35% of your net profit, plus federal income tax on your profit after the half-SE-tax deduction. Paid quarterly to the IRS with Form 1040-ES.
The New York State layer taxes your profit as income at rates from 4% up to 10.9%, depending on how much you earn. You pay it in quarterly installments too, using Form IT-2105, on the same rough rhythm as the federal payments. New York's standard deduction and credits differ from the federal ones, and the state does not allow the federal qualified business income deduction, so do not simply copy your federal estimate.
The New York City layer applies if you live in the five boroughs: city resident income tax of roughly 3.078% to 3.876% on top of the state tax, paid together with your state estimates. If your self-employment is based in the city and you are a nonresident, different rules (including the city's unincorporated business tax for some) can apply — a genuinely CPA-worthy question. One more regional charge: self-employed people whose work sits in the NYC metropolitan commuter district may owe the Metropolitan Commuter Transportation Mobility Tax once net self-employment earnings pass $50,000 a year, paid quarterly with its own form.
Worked example. A Brooklyn web developer nets $90,000. Federal SE tax: $90,000 × 92.35% × 15.3% ≈ $12,717. Federal income tax might be roughly $9,000–$10,000. New York State tax on the profit might run roughly $4,500–$5,500, and New York City tax roughly $2,700–$3,000. Combined: around $29,000–$31,000 — about a third of profit, spread across three governments and two payment systems.
The only way those estimates stay honest is a profit figure you trust month by month. MoneyFeed is a WhatsApp tool that works with the bookkeeping app you already use: text expenses or snap receipts in chat, export clean CSV, Excel, or PDF records, and size your IT-2105 and 1040-ES payments from real numbers. At tax time, the same records form the packet you hand to your CPA.
FAQ
Not a separate one. Your profit is taxed as regular income at state rates from 4% to 10.9%. The 15.3% self-employment tax is federal. New York City residents pay an additional city income tax of about 3.078%–3.876%.
With Form IT-2105, in four installments across the year (April, June, September, January). New York City tax is included in the same payment for city residents.
The Metropolitan Commuter Transportation Mobility Tax applies to self-employed individuals working in the NYC metropolitan commuter district whose net self-employment earnings exceed $50,000 a year. It is paid quarterly and is easy to miss in your first year over the threshold.
No. The qualified business income deduction reduces your federal tax only. Your New York taxable income is figured under state rules, which is one reason your state estimate should be calculated separately.
City resident income tax applies to people who live in the city. Nonresidents earning income in the city can face other regimes, including the unincorporated business tax in some cases. Because the rules are fact-specific, that situation is worth a conversation with a CPA.
New York freelancer tax — FAQ
Do freelancers pay state income tax in New York?
Yes. New York State income tax ranges from 4% to 10.9%. New York City residents also pay an additional city income tax on top.
How much should a New York freelancer set aside?
With state (and possibly NYC) tax on top of federal, many NY freelancers set aside 30–35% of net income. Use our calculator for the federal base and add your NY/NYC rate.
What taxes do I owe as a New York 1099 worker?
Federal self-employment tax (15.3%), federal income tax, New York State income tax, and — if you live in NYC — city income tax, generally via quarterly estimates.
Figures are 2026 headline guidance for freelancers and the self-employed, not tax advice. Check current IRS and state rules or a CPA for your situation.