New York LLC Tax Guide — Complete Overview
New York is one of the most heavily taxed states for LLC owners. Between state income tax (4%-10.9%), the annual LLC filing fee ($25-$4,500 based on revenue), NYC personal income tax (if applicable), and sales tax — the tax burden is significantly higher than states like Texas or Florida. This guide covers every tax obligation for New York LLCs. For formation basics, see our NY LLC guide.
Overview of NY LLC Tax Obligations
| Tax/Fee | Amount | Applies To | Due |
|---|---|---|---|
| NY State income tax (pass-through to members) | 4%-10.9% | All NY-source LLC income | April 15 annually |
| NYC personal income tax | 3.078%-3.876% | Members residing in NYC | April 15 annually |
| Annual LLC filing fee (IT-204-LL) | $25-$4,500 | The LLC entity itself | March 15 annually |
| Sales tax | 4% state + local (up to 8.875% total) | LLCs selling taxable goods/services | Quarterly/annually |
| Metropolitan Commuter Transportation Mobility Tax | 0.34% of payroll | LLCs with employees in MCTD | Quarterly |
| Federal income tax (pass-through) | 10%-37% | All LLC income | April 15 annually |
| Self-employment tax | 15.3% | Active members | April 15 annually |
New York State Income Tax
Unlike Texas or Florida (which have no income tax), New York imposes state income tax on all NY-source income. For LLC members, this works as follows:
Resident members: Taxed on worldwide income at NY rates (4%-10.9%) Non-resident members: Taxed only on NY-source income at NY rates (IT-203 filing) NYC residents: Additional city income tax (3.078%-3.876%) on top of state tax
2026 NY State income tax brackets (single filers):
| Taxable Income | Tax Rate |
|---|---|
| Up to $8,500 | 4% |
| $8,501 - $11,700 | 4.5% |
| $11,701 - $13,900 | 5.25% |
| $13,901 - $80,650 | 5.5% |
| $80,651 - $215,400 | 6% |
| $215,401 - $1,077,550 | 6.85% |
| $1,077,551 - $5,000,000 | 9.65% |
| $5,000,001 - $25,000,000 | 10.3% |
| Over $25,000,000 | 10.9% |
See our state income tax guide for complete details.
Annual LLC Filing Fee (IT-204-LL)
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Get StartedThis is a fee (not a tax) paid by the LLC entity based on NY-source gross income. It applies even if the LLC has losses. See our LLC filing fee guide for details.
| NY-Source Gross Income | Annual Fee |
|---|---|
| Under $100,000 | $25 |
| $100,000 - $249,999 | $50 |
| $250,000 - $499,999 | $175 |
| $500,000 - $999,999 | $500 |
| $1,000,000 - $4,999,999 | $1,500 |
| $5,000,000+ | $3,000-$4,500 |
Sales Tax
NY state sales tax is 4%, plus local additions. Combined rates:
- NYC: 8.875% (4% state + 4.5% city + 0.375% MCTMT)
- Long Island (Nassau/Suffolk): 8.625%
- Westchester: 8.375%
- Albany: 8%
- Most other areas: 7%-8%
See our sales tax guide.
Federal Taxes
Same as all states — pass-through to members, with self-employment tax on active members' shares. See our federal tax guide.
FAQ
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Get StartedWhat is the minimum annual tax cost for a NY LLC?
At minimum: $25 (IT-204-LL filing fee) + state income tax on any NY-source income + $9 biennial statement fee (amortized). A NYC-resident member with $100K in LLC income pays approximately $6,000-$8,000 in combined state/city income tax plus the $25 entity fee.
How does NY tax compare to forming in another state?
If you operate in NY, you owe NY income tax regardless of where your LLC is formed. Forming in Delaware or Wyoming does not avoid NY taxes — you must register as a foreign LLC and your NY-source income is still taxed. The only way to avoid NY tax is to not have NY-source income.
Is the S-corp election beneficial in New York?
Yes, potentially more so than in no-income-tax states. S-corp election saves federal self-employment tax AND reduces your NY income subject to the Metropolitan Commuter Transportation Mobility Tax (if applicable). The combined savings can be substantial for high-earning professionals.