Self-Employment Tax in New York (2026)

Q: What is the self-employment tax rate in New York?

The self-employment tax rate is 15.3% federally, made up of 12.4% Social Security on net earnings up to the annual wage base and 2.9% Medicare on all net earnings. New York has no separate self-employment tax, but self-employment income is also subject to New York State income tax.

Q: How do self-employed New Yorkers pay estimated taxes?

You pay federal estimated tax to the IRS with Form 1040-ES, generally in four installments, and separately pay New York estimated income tax to the Department of Taxation and Finance using Form IT-2105. Both are typically due in April, June, September, and January.

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 6, 2026 · Last updated Aug 6, 2026

Self-employed New Yorkers owe the 15.3% federal self-employment tax (12.4% Social Security up to the annual wage base plus 2.9% Medicare) on Schedule SE, pay it quarterly with Form 1040-ES, and separately owe New York State personal income tax. If you do business in the Metropolitan Commuter Transportation District, you may also owe the MCTMT.

Quick Answer

SE tax rate: 15.3% = 12.4% Social Security (up to the wage base) + 2.9% Medicare
Federal form: Schedule SE (Form 1040); quarterly Form 1040-ES
Additional Medicare: 0.9% on earnings above high-income thresholds
New York tax: State personal income tax on the same net earnings (Form IT-201)
NY estimated tax: Form IT-2105 to the Department of Taxation and Finance
MCTD add-on: Possible Metropolitan Commuter Transportation Mobility Tax (MCTMT)

How the 15.3% Self-Employment Tax Works

Self-employment tax is the Social Security and Medicare tax paid by people who work for themselves. When you are an employee, you and your employer each pay half of these taxes. When you are self-employed - a sole proprietor, an independent contractor, a partner, or the owner of a single-member LLC taxed as a disregarded entity - you pay both halves yourself. That combined rate is 15.3%, and it applies on top of any federal and New York income tax you owe on the same earnings.

The 15.3% breaks into two parts. The Social Security portion is 12.4% and applies only to net earnings up to an annual wage base (also called the contribution and benefit base), a figure the Social Security Administration adjusts each year. The Medicare portion is 2.9% and applies to all net earnings with no cap. High earners also pay an Additional Medicare Tax of 0.9% on wages and self-employment income above threshold amounts that depend on filing status. Self-employment tax is separate from income tax; it exists to fund your future Social Security and Medicare benefits, and it applies regardless of the state you live in. For the national overview, see self-employment tax and try the self-employment tax calculator.

Schedule SE and the Deduction You Get

You calculate self-employment tax on Schedule SE (Form 1040). The starting point is your net profit from self-employment, usually taken from Schedule C or from a partnership's Schedule K-1. Only about 92.35% of net profit is treated as net earnings subject to SE tax, because the calculation removes the employer-equivalent share before applying the rate. If your net earnings are below a small annual floor, you generally owe no SE tax for the year.

The system also gives you a partial offset. You may deduct the employer-equivalent portion - generally one-half of your self-employment tax - as an above-the-line adjustment to income on your federal Form 1040. This deduction lowers your federal adjusted gross income (AGI). Because New York's income tax starts from federal AGI, that deduction indirectly reduces your New York taxable income as well. Keep clean records of your business income and expenses; the lower your net profit, the lower both your SE tax and your income tax. An EIN is not required to owe SE tax, but many self-employed people get one to open a business bank account and to avoid sharing a Social Security number.

Paying Quarterly: Form 1040-ES and New York IT-2105

Self-employed people do not have taxes withheld from a paycheck, so the IRS and New York both expect you to pay as you go through estimated tax. Federally, you use Form 1040-ES to estimate and pay income tax and self-employment tax, generally in four installments across the year. If you do not pay enough during the year, you can owe an underpayment penalty even if you settle up by the filing deadline.

New York runs its own parallel system. Self-employed New Yorkers pay New York estimated income tax with Form IT-2105 to the New York State Department of Taxation and Finance. The federal and state estimated-tax installments generally fall in mid-April, mid-June, mid-September, and mid-January of the following year. A common approach is to set aside a fixed percentage of every payment you receive - covering federal income tax, the 15.3% SE tax, and New York income tax - so the quarterly bills do not catch you short. If your business is organized as an LLC, review New York LLC tax filing for entity-level filing fees that can apply in addition to your personal estimated payments.

Obligation	Who collects it	How you pay
Self-employment tax (15.3%)	IRS (Social Security & Medicare)	Schedule SE; quarterly Form 1040-ES
Federal income tax	IRS	Form 1040; quarterly Form 1040-ES
New York State income tax	NYS Dept of Taxation and Finance	Form IT-201; quarterly Form IT-2105
MCTMT (if in the MCTD)	NYS Dept of Taxation and Finance	Estimated MCTMT; annual reconciliation

New York State Income Tax on Your Net Earnings

New York does not have a separate "self-employment tax," but it does tax your self-employment income through the New York State personal income tax. Residents are taxed on all of their income; nonresidents are taxed on income earned from New York sources. New York uses a graduated rate structure, so the percentage you pay rises as taxable income rises. You report your business results on your New York return (Form IT-201 for residents), which begins from your federal AGI and then applies New York additions, subtractions, and credits.

Because New York piggybacks on federal AGI, the federal deductions that lower your business profit - ordinary and necessary business expenses, the deduction for half of your SE tax, and retirement contributions - generally reduce your New York tax too. If you formed an entity, keep the personal income tax picture separate from any entity-level obligations; an LLC owner still reports pass-through profit on a personal return unless the entity elects corporate treatment. For a comparison of how an S corporation versus an LLC changes your payroll and self-employment exposure, see that guide, and consider whether an S-corp versus C-corp structure fits later-stage plans.

New York City and the MCTMT

Two extra layers can apply depending on where you live and work. First, New York City residents pay New York City personal income tax on their income - including self-employment income - and that city tax is collected through the same state return. New York City also imposes an Unincorporated Business Tax (UBT) on certain unincorporated businesses operating in the city, which can reach sole proprietors and partnerships above certain income levels; verify current UBT rules for your specific activity.

Second, the Metropolitan Commuter Transportation Mobility Tax (MCTMT) applies to employers and self-employed individuals doing business within the Metropolitan Commuter Transportation District (MCTD) - New York City's five boroughs plus Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and Westchester counties. A self-employed individual owes the MCTMT when net earnings from self-employment allocated to the MCTD exceed the statutory threshold set by the Department of Taxation and Finance. The MCTMT is separate from both the federal SE tax and the New York income tax, so residents of the metropolitan region should factor it into their quarterly set-asides. Confirm the current rate and threshold on the Department's MCTMT page before filing, since these figures are adjusted over time.

Putting It Together for 2026

For a self-employed New Yorker, a realistic tax stack in 2026 looks like this: the 15.3% federal self-employment tax on 92.35% of net profit (with the Social Security portion capped at the wage base), federal income tax at your marginal bracket, New York State income tax on the same income, New York City income tax if you are a city resident, and possibly the MCTMT if you work in the MCTD. The deduction for half of your SE tax softens the federal and, indirectly, the state bite. Because these obligations run in parallel, the safest practice is to open a separate savings account and move a fixed share of every client payment into it, then pay federal and New York estimated taxes on the quarterly schedule. If you are just starting out, read sole proprietorship vs LLC and business licenses in New York, and if you are winding down, see how to dissolve an LLC in New York. Nonresidents who do New York work should review the glossary term for source income and the New York registered agent requirement if they run an entity. Compare your situation with self-employment tax in California and Connecticut to see how state rules differ.

Frequently Asked Questions

What is the self-employment tax rate in New York?

The self-employment tax rate is 15.3% federally: 12.4% Social Security on net earnings up to the annual wage base and 2.9% Medicare on all net earnings. New York has no separate SE tax, but the same income is subject to New York State income tax.

Does New York have its own self-employment tax?

No. Self-employment tax is a federal Social Security and Medicare tax on Schedule SE. New York taxes the same income through its personal income tax, and if you work in the MCTD you may also owe the Metropolitan Commuter Transportation Mobility Tax.

How do self-employed New Yorkers pay estimated taxes?

You pay federal estimated tax with Form 1040-ES and New York estimated income tax with Form IT-2105, generally in four installments due in April, June, September, and January. Paying too little during the year can trigger underpayment penalties.

What is the Metropolitan Commuter Transportation Mobility Tax?

The MCTMT is a New York tax on employers and self-employed individuals doing business in the Metropolitan Commuter Transportation District, which includes New York City and nearby counties. Self-employed individuals owe it when MCTD net earnings exceed the statutory threshold.

Can I deduct half of my self-employment tax?

Yes. You deduct the employer-equivalent portion, generally half of your SE tax, as an above-the-line adjustment on your federal return. That lowers federal AGI, which also reduces the starting figure for your New York State income tax.

Do New York City residents pay a separate city tax on self-employment?

New York City residents pay New York City personal income tax on their income, including self-employment income, through the state return. The city's Unincorporated Business Tax can also apply to some unincorporated businesses. Check current NYC rules.

Self-employment tax (cluster hub)
Self-employment tax calculator
Self-employment tax in California (sibling)
Self-employment tax in Connecticut (sibling)
New York LLC tax filing
Business tax overview
How to get an EIN
S-corp vs LLC
Single-member LLC
New York operating agreement

Sources

IRS - Self-Employment Tax (Social Security and Medicare Taxes) (15.3% rate; 12.4% + 2.9%).
IRS - About Schedule SE (Form 1040) (net earnings; 92.35%).
IRS - About Form 1040-ES, Estimated Tax for Individuals.
IRS - Estimated Taxes (quarterly installments).
IRS - Topic No. 554, Self-Employment Tax.
IRS - Topic No. 751, Social Security and Medicare Withholding Rates (0.9% Additional Medicare).
IRS - Self-Employed Individuals Tax Center.
IRS - About Schedule C (Form 1040) (net profit).
Social Security Administration - Contribution and Benefit Base (annual Social Security wage base).
New York Dept of Taxation and Finance - Estimated Tax (Form IT-2105).
New York Dept of Taxation and Finance - Personal Income Tax Definitions (residents and nonresidents).
New York Dept of Taxation and Finance - Metropolitan Commuter Transportation Mobility Tax (MCTMT).
New York Dept of Taxation and Finance - New York State Income Tax Rates.
Cornell Law LII - 26 U.S.C. § 1401, Rate of tax.
Cornell Law LII - 26 U.S.C. § 1402, Definitions (net earnings from self-employment).
Cornell Law LII - 26 U.S.C. § 6654, Failure to pay estimated income tax.

LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. Tax rates, thresholds, and wage-base figures change; verify current requirements with the IRS and the New York State Department of Taxation and Finance before acting.