Quarterly Estimated Taxes for New York LLC Owners
New York LLC owners must make estimated payments to BOTH the IRS (federal) and the NY Department of Taxation and Finance (state). NYC residents add a third layer: city estimated taxes. This is more complex than in no-income-tax states where you only deal with the IRS. For the complete picture, see our NY LLC tax guide.
What You Owe Quarterly
| Payment | To Whom | Required If |
|---|---|---|
| Federal estimated (income + SE tax) | IRS | Expect to owe $1,000+ federally |
| NY State estimated | NY Tax Dept | Expect to owe $300+ in state tax |
| NYC estimated | NYC Finance | NYC resident expecting $300+ city tax |
Due Dates (Same for Federal, State, and City)
| Quarter | Due Date |
|---|---|
| Q1 (Jan-Mar) | April 15 |
| Q2 (Apr-May) | June 15 |
| Q3 (Jun-Aug) | September 15 |
| Q4 (Sep-Dec) | January 15 |
How to Pay
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Get StartedFederal: IRS Direct Pay (irs.gov/payments) or EFTPS.gov
NY State: Online at https://www.tax.ny.gov/ (recommended) or mail Form IT-2105 voucher with payment to NYS Tax Department, Processing Center, PO Box 4122, Binghamton, NY 13902-4122
NYC: Included on the NY State estimated payment (same form IT-2105 covers both state and city)
Calculating Your Quarterly Payment
Safe harbor to avoid penalties:
- NY State: Pay at least 100% of prior year's NY state tax (in 4 equal installments), OR 90% of current year's liability
- Federal: Pay at least 100% of prior year's federal tax (110% if AGI over $150,000), OR 90% of current year's liability
Practical approach: Total quarterly payment = (expected federal tax + expected NY state tax + NYC tax if applicable) divided by 4.
Rule of thumb for NYC LLC owners: Set aside 40-45% of net LLC profit for combined federal, state, and city taxes plus self-employment tax.
Underpayment Penalties
NY State penalty: Similar to federal — penalty calculated on underpaid amount at applicable interest rate. Applies per quarter.
Federal penalty: Current rate approximately 8% annually on underpaid amounts.
NYC penalty: Included in the state penalty calculation.
FAQ
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Get StartedCan I make larger payments in later quarters if my income is seasonal?
Yes. Use the annualized income installment method (both IRS Form 2210 Schedule AI and NY equivalent). This lets you base each quarter's payment on actual income earned during that period.
Do I make estimated payments if my LLC elected S-corp?
If you are an S-corp owner-employee receiving a W-2 salary, your payroll withholding may cover your tax liability. Any distributions beyond salary still require estimated payments. Increase your W-2 withholding to potentially avoid quarterly payments altogether.
How much should a NYC-based LLC owner set aside?
For a member in the 24% federal bracket + 6.85% NY + 3.5% NYC + 15.3% SE tax: approximately 40-45% of net profit. With S-corp election (removing SE tax on distributions): approximately 30-35%.