Quick Answer
The MTA surcharge adds 0.34% tax on net self-employment earnings over $50,000 for NYC area freelancers. If you earn $100,000 in freelance income, you'll pay an extra $170 annually ($100,000 × 0.34% = $340, but only on earnings over $50,000, so $50,000 × 0.34% = $170).
Best Answer
James Okafor, Self-Employment Tax Specialist
Established freelancers in the NYC metro area earning over $50,000 annually
What is the MTA surcharge?
The Metropolitan Commuter Transportation Mobility Tax (MTA surcharge) is a 0.34% tax on net self-employment earnings over $50,000 for freelancers working in the MTA region. This includes all five NYC boroughs plus Nassau, Suffolk, Westchester, Rockland, Orange, Putnam, and Dutchess counties.
How the MTA surcharge calculation works
The surcharge applies to your Schedule C net profit minus the $50,000 exemption:
MTA Surcharge = (Net Self-Employment Income - $50,000) × 0.34%
Note: This is separate from and in addition to regular self-employment tax (15.3%).
Example: $125,000 freelance photographer
Let's say you're a wedding photographer in Brooklyn who earned $125,000 net in 2026:
This $255 gets added to your regular federal, state, and local tax liability.
Who must pay the MTA surcharge?
Subject to MTA surcharge:
Exempt from MTA surcharge:
MTA region coverage
The surcharge applies if you work in these counties:
Key factors affecting your MTA surcharge
Filing and payment
The MTA surcharge is calculated on Form IT-2658 and included with your NY state tax return. You should include it in quarterly estimated tax payments if you expect to owe more than $1,000 annually in combined taxes.
What you should do
If you're earning over $40,000 as a freelancer in the MTA region, factor the surcharge into your tax planning. Use our quarterly estimator to calculate the surcharge along with your other taxes. Consider whether S-corp election makes sense for your situation — it eliminates the MTA surcharge but may create other complications.
[Calculate your MTA surcharge with our quarterly-estimator tool →]
Key takeaway: The MTA surcharge adds 0.34% tax on self-employment income over $50,000, costing successful MTA-region freelancers $200-$1,000+ annually.
*Sources: [NY Tax Law Section 804-A](https://www.nysenate.gov/legislation/laws/TAX/804-A), [IRS Publication 334](https://www.irs.gov/pub/irs-pdf/p334.pdf)*
Key Takeaway: The MTA surcharge adds 0.34% tax on self-employment income over $50,000, costing successful MTA-region freelancers $200-$1,000+ annually.
MTA surcharge liability by income level for NYC-area freelancers
| Net Self-Employment Income | MTA Surcharge Calculation | Annual Surcharge Owed |
|---|---|---|
| $40,000 | No surcharge (under threshold) | $0 |
| $75,000 | ($75,000 - $50,000) × 0.34% | $85 |
| $100,000 | ($100,000 - $50,000) × 0.34% | $170 |
| $150,000 | ($150,000 - $50,000) × 0.34% | $340 |
| $200,000 | ($200,000 - $50,000) × 0.34% | $510 |
More Perspectives
James Okafor, Self-Employment Tax Specialist
First-year freelancers in the NYC area learning about local tax obligations
Understanding the MTA surcharge as a new freelancer
As a new freelancer in the New York metro area, the MTA (Metropolitan Transportation Authority) surcharge is one more tax you need to understand. The good news? It only applies once you're earning substantial income from your freelance work.
When does it apply to you?
The MTA surcharge kicks in when your net self-employment income exceeds $50,000. If you're in your first year and expecting to earn $25,000-$40,000, you won't owe this surcharge yet.
Example: First-year consultant in Queens
Say you start freelance marketing consulting in March 2026 and earn $35,000 for the year:
What counties are covered?
The MTA surcharge applies if you work in the NYC metro region:
If you work remotely for clients outside this region, the surcharge may not apply.
Planning for growth
While the MTA surcharge might not affect you in year one, it's worth understanding for future planning. If your business grows quickly and you expect to exceed $50,000 next year, you'll need to factor this into your quarterly estimated tax payments.
Simple calculation
Once you do cross $50,000, the math is straightforward:
(Your net freelance income - $50,000) × 0.34% = MTA surcharge
For a $75,000 earner: ($75,000 - $50,000) × 0.34% = $85 per year
Key takeaway: New freelancers earning under $50,000 won't owe the MTA surcharge, but should plan for it as their business grows.
*Sources: [NY Tax Law Section 804-A](https://www.nysenate.gov/legislation/laws/TAX/804-A)*
Key Takeaway: New freelancers earning under $50,000 won't owe the MTA surcharge, but should plan for it as their business grows.
Sources
- NY Tax Law Section 804-A — Metropolitan Commuter Transportation Mobility Tax statute
- IRS Publication 334 — Tax Guide for Small Business
Related Questions
Reviewed by James Okafor, Self-Employment Tax Specialist on February 28, 2026
This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.