2026 tax year · New York
Marketplace seller taxes in New York
Etsy, eBay, Shopify and the rest report your gross and withhold nothing. The gap between that and what you are actually taxed on is your costs, in New York that gap is worth $7,276 in tax.
Take a driver who grossed $45,000 over 18,000 business miles. After mileage at 74.3 cents and the rest of the stack, worked through on the marketplace seller page $26,775 comes off and $18,225 is left as taxable profit. That profit is what New York and the IRS charge against.
What that leaves you owing in New York
New York uses graduated 2026 income tax brackets topping out at 10.9%, across 9 brackets, on top of federal income tax and self-employment tax.
| Self-employment tax | $2,575 |
| Federal income tax | $67 |
| New York income tax | $677 |
| Total tax | $3,320 |
| Effective rate on gross | 7.4% |
Earning more in New York
A single filer taking the standard deduction, this work as the only income, the calculator above handles the other filing statuses. Miles rise with earnings, so the deduction rises too, and the effective rate on gross climbs more slowly than it would for someone whose income grew without expenses attached:
| Volume | Gross | Mileage off | Taxable profit | New York tax | Total tax | Rate on gross |
|---|---|---|---|---|---|---|
| Part-time | $15,000 | $0 | $15,000 | $558 | $2,677 | 17.8% |
| Steady side income | $45,000 | $0 | $45,000 | $2,016 | $10,596 | 23.5% |
| Full-time | $72,000 | $0 | $72,000 | $3,484 | $18,288 | 25.4% |
Switching state opens that state's page.
Enter your numbers and press Calculate to see your 2026 estimate.
New York specifics that change the number
New York also has local income tax that the estimate above does not model, new York City (3.876%); yonkers (1.477% resident, 0.50% non-resident). Add it separately for where you live and work.
New York runs a state disability insurance program: varies. NY DBL (statutory disability) mandatory for employees. SE not required.
Selling into and out of New York
Income tax follows you: New York taxes your profit wherever the buyer was. Sales tax does not. Marketplace facilitator laws make the platform collect and remit sales tax on your behalf in most states, which is why a seller can have customers in all fifty and still file only one income tax return. Selling off-platform is where that stops being true.
On $18,225 of profit, what the states around New York would charge:
| State | Its tax | vs New York |
|---|---|---|
| New Jersey | $255 | −$479 |
| Pennsylvania | $560 | −$175 |
| Connecticut | $570 | −$164 |
| Vermont | $611 | −$124 |
| Massachusetts | $911 | +$177 |
- New Jersey would take $479 less, $255 against New York's $734.
- Pennsylvania would take $175 less, $560 against New York's $734.
- Connecticut would take $164 less, $570 against New York's $734.
- Vermont would take $124 less, $611 against New York's $734.
- Massachusetts would take $177 more, $911 against New York's $734.
Marketplace seller tax questions in New York
How much should a New York seller set aside?
About 7.4% of gross on the $45,000 example, $3,320 across self-employment tax, federal income tax and $677 to New York. Set aside from each payout rather than finding it in April.
Does the $45,000 on my 1099-NEC match what New York taxes?
No. New York taxes profit, not gross. After $26,775 of deductions the taxable figure is $18,225, so the New York bill is $677 rather than what gross alone would suggest.