New York State Income Tax for LLC Members
New York imposes state income tax on all NY-source income, making it one of the more expensive states for LLC owners. LLC income passes through to members who report it on their personal NY state tax returns. If you also live in New York City, an additional city tax applies. For the complete picture, see our NY LLC tax guide.
How It Works for LLC Members
Single-member LLC: All net income passes through to your personal NY IT-201 (resident) or IT-203 (non-resident) return.
Multi-member LLC: The LLC files Form IT-204 (NY Partnership Return) as an informational return. Each member receives a NY IT-204-IP showing their share of NY-source income. Members report this on their personal returns.
S-corp elected LLC: Files Form CT-3-S (NY S Corporation Return). Income passes through to members via NY IT-204-IP equivalents.
Tax Rates (2026)
New York uses a graduated income tax with rates from 4% to 10.9%. Your LLC income is combined with all other income to determine your bracket:
| Income Range (Single) | Rate |
|---|---|
| $0 - $8,500 | 4.00% |
| $8,501 - $11,700 | 4.50% |
| $11,701 - $13,900 | 5.25% |
| $13,901 - $80,650 | 5.50% |
| $80,651 - $215,400 | 6.00% |
| $215,401 - $1,077,550 | 6.85% |
| $1,077,551 - $5,000,000 | 9.65% |
| $5,000,001 - $25,000,000 | 10.30% |
| Over $25,000,000 | 10.90% |
New York City Income Tax (Additional)
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Get StartedNYC residents pay city income tax ON TOP of state tax:
- 3.078% on income up to $12,000
- Graduated up to 3.876% on income over $50,000
Example: An NYC-resident LLC member with $200,000 in LLC pass-through income pays approximately $11,800 in state tax + $7,500 in city tax = $19,300 in combined state/city tax. Plus federal income tax and self-employment tax.
Non-Resident Members
If you are not a NY resident but have NY-source income from your LLC:
- File Form IT-203 (Non-Resident and Part-Year Resident Income Tax Return)
- Pay NY tax ONLY on NY-source income (allocated based on where work is performed or where property/customers are located)
- Your home state provides a credit for taxes paid to NY (to avoid double taxation)
Estimated Tax Payments
NY requires quarterly estimated payments if you expect to owe $300+ in state tax:
- Due: April 15, June 15, September 15, January 15
- Pay online at https://www.tax.ny.gov/ or via Form IT-2105
FAQ
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Get StartedDo I owe NY income tax even if my LLC loses money?
No income tax if the LLC has losses (negative income flows through to offset other income on your return, subject to passive activity rules). However, you still owe the annual LLC filing fee (IT-204-LL) based on gross income — not net income.
Can I reduce my NY tax by forming in another state?
No. If you earn income from NY sources (work performed in NY, customers in NY, property in NY), you owe NY income tax regardless of where your LLC is formed. Forming in Delaware or Wyoming does not avoid NY taxation.
What is the MCTMT (Metropolitan Commuter Transportation Mobility Tax)?
An additional 0.34% tax on net self-employment earnings allocated to the Metropolitan Commuter Transportation District (NYC + Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, Westchester counties). Applies to members with >$50,000 in SE earnings from the MCTD.