On this page (8)
No. NYC personal income tax is a tax on New York City residents, not on people who work in the city. The NYS Tax Department says: "Nonresidents of New York City are not liable for New York City personal income tax" (NYS Tax FAQ). If you live in New Jersey, on Long Island or in Westchester and only drive in the five boroughs, the NYC layer of tax doesn't apply to you. Three other New York taxes can still reach your driving income: New York State income tax, the MCTMT, and, for some Westchester drivers, the Yonkers nonresident earnings tax.
This page explains who each tax applies to. It is not tax advice. Your home state's own rules also apply, so check them too.
Are you a NYC resident for tax?
NYS Tax uses the same tests for the city as for the state. You are a New York City resident if:
- your domicile is New York City, meaning your permanent, primary home that you intend to return to; or
- you have a permanent place of abode in the city and spend 184 days or more there in the year.
"All city residents' income, no matter where it is earned, is subject to New York City personal income tax" (NYS Tax FAQ). The FAQ also warns that a NYC domicile "does not change until you can demonstrate with clear and convincing evidence" that you left it and set up a new one elsewhere. Living with family in New Jersey for a while does not by itself end it. New York City means the Bronx, Brooklyn, Manhattan, Queens and Staten Island (NYS Tax).
A driver who keeps an apartment in Queens and spends most of the year there may be a city resident for tax even with a home address elsewhere. That is the case to take to a preparer.
Which taxes can apply to you
Sources: NYS Tax FAQ, NYC, Yonkers and MCTMT.
New York State: the nonresident return
As a nonresident, "you only pay tax on New York source income, which includes earnings from work performed in New York State" (NYS Tax FAQ). Trips you drive in New York are work performed in New York. Nonresidents and part-year residents use Form IT-203. If you moved into or out of the city during the year, NYS Tax says to complete Form IT-360.1 with your return. How to split income between states is a question for a preparer. This page doesn't give that advice.
MCTMT and UBT are separate questions
The MCTMT applies to self-employed people whose net earnings are attributable to the Metropolitan Commuter Transportation District. Zone 1 is the five NYC counties. Zone 2 is Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess and Westchester (NYS Tax). It applies only when net earnings in a zone exceed $50,000 for 2025 and earlier, or $150,000 for 2026 and later, counted per person and per zone (NYS Tax). Where you live doesn't decide it. Details: MCTMT for TLC drivers.
The NYC Unincorporated Business Tax has its own filing threshold, and whether it covers a given driver is not settled on this site. See NYC UBT for TLC drivers and ask a preparer or NYC Finance.
Which applies to me?
What to do next
- Estimated tax: NYS says you don't 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 tax after withholding and credits. Net self-employment earnings allocated to the MTA district can also make estimated payments necessary (NYS Tax).
- City residents: rates and examples are in how much NYC income tax do drivers pay?
- No 1099? It is still income: do I pay taxes on Uber income without a 1099?
- Licensing from out of state is a separate TLC question: can I get a TLC license with an out-of-state license?
More on the taxes hub.
Frequently asked questions
I live in New Jersey and drive Uber in NYC. Do I pay NYC income tax?
Not NYC personal income tax, if you are not a city resident. NYS Tax says nonresidents of New York City are not liable for NYC personal income tax. You may still owe New York State tax on income from work done in New York.
Who counts as a NYC resident for tax?
Someone whose domicile (permanent, primary home) is in NYC, or someone who keeps a permanent place to live in NYC and spends 184 days or more in the city in the year.
Do I file a New York State return if I live in another state?
You may have to. NYS Tax says nonresidents pay New York tax on New York source income, which includes earnings from work performed in New York State. That return is Form IT-203.
Does MCTMT apply if I live outside NYC?
It is a separate tax on self-employed people whose net earnings are attributable to the MTA district (NYC is Zone 1). The threshold is over $50,000 for 2025 and over $150,000 for 2026, per zone.
I live in Westchester. Anything else?
If you carry on a business in the city of Yonkers and must file a NYS return, NYS Tax says you must file the Yonkers nonresident earnings tax return, Form Y-203.
Sources
Last reviewed against the official sources on .
- NYS Tax: New York City, Yonkers, and MCTMT tax.ny.gov
- NYS Tax: Residents, nonresidents and part-year residents FAQs tax.ny.gov
- NYS Tax: MCTMT individual definitions (Zone 1 and Zone 2) tax.ny.gov
- NYS Tax: Who must make estimated tax payments tax.ny.gov
Spotted something out of date? Tell us and we'll check it against the official source.
TLC Help is not a law firm and is not affiliated with the NYC Taxi & Limousine Commission or OATH. Explanations on this site are general information, not legal advice. Legal representation is provided by independent attorneys and OATH-registered representatives in our network.