Who must make estimated tax payments?
You may be required to make estimated tax payments if:
- no taxes are withheld from certain taxable income during the year, or
- you have net earnings from self-employment allocated to the Metropolitan Commuter Transportation District (MCTD).
Examples of taxable income:
- self-employment income
- pension/annuity income
- prize winnings
- capital gains
- interest income
- dividend income
- lottery and horse racing proceeds
- rental income
- windfall income (any unanticipated income from which no taxes are withheld)
- gains from certain sales made by nonresident individuals and estates and trusts (refer to the forms below for more information)
- Form IT-2663, Nonresident Real Property Estimated Income Tax Payment Form
- Form IT-2664, Nonresident Cooperative Unit Estimated Income Tax Payment Form
- income derived from New York sources from partnerships or New York S corporations. See Form IT-2658, Report of Estimated Tax for Nonresident Individual Partners and Shareholders and Form CT-2658, Report of Estimated Tax for Corporate Partners
If you are making estimated tax payments, you can pay electronically by creating an Online Services account or use Form IT-2105, Estimated Tax Payment Voucher for Individuals.
You do not need to pay estimated tax if:
- You expect to owe less than $300 of New York State, $300 of New York City, and $300 of Yonkers income tax after deducting tax withheld and credits that you are entitled to claim.
- You expect your tax withheld during 2023 to be at least:
- 90% of the tax shown on your 2023 return
- 100% of the tax shown on your 2022 return (110% of that amount if you are not a farmer or a fisherman and the New York adjusted gross income [NYAGI] [or net earnings from self-employment allocated to the MCTD] shown on that return is more than $150,000 [$75,000 if married filing separately for 2023]). You must have filed a return for 2022 and it must have been for a full 12-month year.
Note: Special rules apply to farmers and fishermen. See Form IT-2105-I, Instructions for Form IT-2105, Estimated Tax Payment Voucher for Individuals.
You should also note that estates (and certain grantor trusts) are exempt from paying estimated tax for the tax year of the decedent's death and the following year.