Tax Planning Services in New York City

The New York City tax layer

• NYC resident income tax (3.078% to 3.876%): On top of federal and New York State tax, for everyone who lives in the five boroughs, on all of their income. People who only work in the city and live elsewhere do not pay it.
• Unincorporated Business Tax (4%): Sole proprietors, freelancers and partnerships doing business in the city can owe the UBT. Exemptions and a small business credit reduce or remove it for many small businesses, and residents get a partial credit.
• General Corporation Tax on S corps (8.85%): The city does not recognize the S corporation election. S corps pay the General Corporation Tax on their city profit, which changes when an S corp is worth it inside the city.
• MCTMT for the self-employed (0.60%): Self-employed New Yorkers owe the Metropolitan Commuter Transportation Mobility Tax on net earnings in the city once they pass $150,000 (the 2026 threshold, up from $50,000). Many freelancers who paid it last year will not owe it this year.

What we plan for NYC clients

• UBT or S corp: run the city math first: Federally, an S corp can cut self-employment tax. In the city, it swaps the UBT (often reduced by credits for small businesses) for the General Corporation Tax. We model both before you file anything.
• NYC PTET for owners: City partnerships, and S corps whose shareholders all pay NYC tax, can elect the city's 3.876% pass-through entity tax alongside the state PTET, paying city tax at the entity level and deducting it federally. The election for each year is due by March 15.
• Residency: moving in, moving out: Leaving the city saves up to 3.876% a year, but only if the move is real and documented. Statutory residency (a home here plus more than 183 days) and domicile both get audited closely.
• Retirement plans for city freelancers: A solo 401(k) or SEP IRA takes income off the top at your full federal, state and city rate. For a Brooklyn freelancer at a 40%+ combined rate, every $10,000 contributed saves $4,000 or more.
• Equity compensation and bonuses: RSUs and bonuses are often under-withheld. We project the tax on this year's vests, set estimates, and time sales across tax years where it helps.
• Tax-exempt income that is truly triple tax-free: New York municipal bonds are exempt from federal, New York State and New York City income tax for city residents, which is worth more here than almost anywhere.

Who we work with

• Freelancers, creatives and consultants in Brooklyn, Queens and Manhattan
• Restaurant, retail and service business owners across the boroughs
• Bronx and Queens landlords with two to four family homes
• Manhattan professionals with RSUs, bonuses and high W-2 income
• Contractors and trades on Staten Island and in the outer boroughs
• Anyone moving into or out of the city this year

Frequently asked questions

Do you offer tax planning in New York City?

Yes. We work with clients in all five boroughs by video, with documents shared securely online, and we meet clients in person at our office at 75 South Broadway in White Plains, about 40 minutes from Grand Central on Metro-North.

Do New York City residents pay city income tax?

Yes. City residents pay New York City personal income tax of 3.078% to 3.876% on top of federal and New York State tax, on all of their income wherever it is earned. People who work in the city but live outside it do not pay the city income tax.

Does New York City recognize S corporations?

No. The city does not recognize the S corporation election, so S corporations doing business in the city pay the General Corporation Tax. That is why the S corp decision needs a separate city calculation for NYC businesses.

What is the NYC Unincorporated Business Tax?

The UBT is a 4% city tax on the business income of sole proprietors, partnerships and LLCs taxed as partnerships that do business in the city. Exemptions and a small business credit reduce or eliminate it for many small businesses, and city residents can claim a partial credit for UBT paid against their personal city tax.

How much does tax planning cost in NYC?

It depends on how complex your situation is. We quote a straight fee after a free 15 minute call, before any work starts, and we will tell you on the call if we do not think planning would pay for itself for you.

When should NYC residents start year-end tax planning?

October or November. Most moves that lower this year's tax, such as retirement deferrals through payroll, equipment purchases, charitable gifts and loss harvesting, have to be completed by December 31.