The 38-year-old rapper turned himself in Monday morning. Authorities say he failed to pay nearly $33,000 in taxes through 2004 and 2007.
He is being charged with repeated failure to file a return and failure to pay taxes.
Method Man, whose real name is Clifford Smith, could face up to four years in prison.
He won a Grammy in 1995 for best rap performance by a group or duo with Mary J. Blige for "I'll Be There For You/You're All That I Need." He is also a member of the group Wu-Tang Clan.
Method Man is scheduled to be arraigned Monday in Staten Island Criminal Court.