New York taxes personal income at 4% to 10.9%, and New York City residents pay city income tax on the same return. A sole proprietor owes nothing at the business level, but self-employment earnings in the New York City commuter area can carry an extra tax. An LLC pays an annual filing fee from $25. Corporations pay 6.5% of their New York business income, or a fixed dollar minimum of $25 to $200,000 set by New York receipts if that is higher.
Personal income tax
New York residents file Form IT-201. The rate for single filers is 4% on the first $8,500, 4.5% on the next $3,200, 5.25% on the next $2,200, 5.5% on the next $66,750, 6% on the next $134,750, 6.85% on the next $862,150, 9.65% on the next $3,922,450, 10.3% on the next $20,000,000, 10.9% on everything above $25,000,000 of taxable income. Above $107,650 of New York adjusted gross income, New York takes back the benefit of its lower rates, and above $25,000,000 it charges 10.9% on every dollar.
The same return carries two local taxes. New York City residents pay city income tax at 3.078% to 3.876% of taxable income. Yonkers residents pay a surcharge of 16.75% of their New York State tax, after refundable credits. Social Security is not taxed.
- Return
- Form IT-201
- Rates, married filing jointly
- 4% on the first $17,150, 4.5% on the next $6,450, 5.25% on the next $4,300, 5.5% on the next $133,650, 6% on the next $161,650, 6.85% on the next $1,832,150, 9.65% on the next $2,844,650, 10.3% on the next $20,000,000, 10.9% on everything above $25,000,000
- Rates, head of household
- 4% on the first $12,800, 4.5% on the next $4,850, 5.25% on the next $3,250, 5.5% on the next $86,750, 6% on the next $161,650, 6.85% on the next $1,347,150, 9.65% on the next $3,383,550, 10.3% on the next $20,000,000, 10.9% on everything above $25,000,000
- Standard deduction
- $8,000 single or married filing separately, $16,050 married filing jointly, $11,200 head of household. $3,100 if someone else can claim you as a dependent
- Dependent exemption
- $1,000 per dependent
- Pensions and annuities
- The first $20,000 per person is not taxed, from age 59 and a half
- 529 plan contributions
- Deductible up to $5,000, or $10,000 married filing jointly
- Empire State child credit
- $1,000 for each child under four and $330 for each child aged four to sixteen, refundable, reduced at higher incomes
- New York City tax
- 3.078% to 3.876% of taxable income, for city residents
- Yonkers surcharge
- 16.75% of New York State tax, for Yonkers residents
Sole proprietor
New York State charges a sole proprietor with no LLC nothing at the business level. The annual filing fee form is for LLCs, LLPs and partnerships, so you file none. Your business profit is taxed on your own Form IT-201.
If you have self-employment earnings in the New York City commuter area, the same return carries the metropolitan commuter transportation mobility tax. Once your earnings in a zone pass $50,000, the whole amount is taxed, not just the part above it: 0.6% in the five boroughs: Bronx, Kings, New York, Queens and Richmond, and 0.34% in Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk and Westchester.
If you do business in New York City, the city may also want its own Unincorporated Business Tax. That is a separate city filing, not part of your state return.
Single-member LLC
A single-member LLC with any income, gain, loss or deduction from New York files Form IT-204-LL and pays a flat $25 fee, whether it made money or lost it. It is due the 15th day of the third month after the year ends, so March 15 for a calendar year. There is no extension, even if you extend your personal return.
The LLC's profit is taxed on your own Form IT-201, and the commuter transportation tax described for sole proprietors applies to your self-employment earnings in the same way.
Partnership
A New York partnership files Form IT-204. The profit passes through to the partners, who report it on their own returns.
A partnership that is an LLC or LLP also files Form IT-204-LL and pays an annual filing fee based on its New York source gross income, starting at $25 even with none, up to $4,500. An ordinary partnership pays a fee only once its New York source gross income reaches $1,000,000. The fee is due the 15th day of the third month after the year ends, so March 15 for a calendar year.
If any partner lives outside New York, the partnership must pay estimated tax on that partner's behalf, on Form IT-2658.
S corporation
A New York S corporation files Form CT-3-S, the S corporation franchise tax return. It owes at least the fixed dollar minimum tax, set by its New York receipts, from $25 up to $200,000, whatever its profit.
If any shareholder lives outside New York, the corporation must pay estimated tax on that shareholder's behalf, on Form IT-2658.
C corporation
A C corporation files Form CT-3 and pays 6.5% of its New York business income, or 7.25% once that income passes $5,000,000. A corporation selling into other states counts only its New York share, measured by New York receipts over receipts everywhere.
New York then compares that tax with two other figures and charges whichever is highest: a tax on its capital base, and a fixed dollar minimum set by New York receipts, from $25 up to $200,000. So a corporation with little or no profit still pays the minimum. Businesses in the metropolitan commuter area also pay an MTA surcharge.
- Return
- Form CT-3
- Tax on business income
- 6.5%, or 7.25% above $5,000,000. 4.875% for a qualified emerging technology company, 0% for a qualified New York manufacturer
- Fixed dollar minimum
- $25 with New York receipts of $100,000 or less, $75 up to $250,000, $175 up to $500,000, $500 up to $1,000,000, $1,500 up to $5,000,000, rising in steps to $200,000 above $1,000,000,000
- Tax owed
- The highest of the tax on business income, the tax on capital base and the fixed dollar minimum
- Multi-state profit
- New York receipts over receipts everywhere
Estimate your state tax
Pick your business type and enter this year's numbers to see the state business tax New York charges. It assumes all your sales are in New York.
An estimate for planning, not tax advice.
Sources
- New York Instructions for Form IT-201 (IT-201-I), 2025
- New York Form IT-201, 2025
- New York Form IT-213, Claim for Empire State Child Credit, 2025
- tax.ny.gov Partnership, LLC, and LLP annual filing fee
- tax.ny.gov Instructions for Form IT-204-LL
- tax.ny.gov Instructions for Form IT-2658, Report of Estimated Tax for Nonresident Individuals
- tax.ny.gov Instructions for Form CT-3 (2025), Tax rates schedule, pages 8 and 9
Last reviewed August 2026.
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