The variability of September Arctic sea ice at interannual to multidecadal time scales in the midst of anthropogenically forced sea ice decline is not fully understood. Understanding Arctic sea ice variability at different time scales is crucial for better predicting future sea ice conditions and separating the externally forced signal from internal variability. Here, we study modes of variability, extreme events and trend in September Arctic sea ice in 100–150 year datasets by using time-frequency analysis. We extract the non-linear trend for sea ice area and provide an estimate for the sea ice loss driven by anthropogenic warming with a rate of ∼−0.25 million km² per decade in the 1980s and accelerating to ∼−0.47 million km² per decade in 2010s. Assuming the same accelerating rate for sea ice loss in the future and excluding the contributions of internal variability and feedbacks, a September ice-free Arctic could occur around 2060. Results also show that changes in sea ice due to internal variability can be almost as large as forced changes. We find dominant modes of sea ice variability with approximated periods of around 3, 6, 18, 27 and 55 years and show their contributions to sea ice variability and extremes. The main atmospheric and oceanic drivers of sea ice modes include the Arctic Oscillation and Arctic dipole anomaly for the 3 year mode, variability of sea surface temperature (SST) in the Gulf Stream region for the 6-year mode, decadal SST variability in the northern North Atlantic Ocean for the 18-year mode, Pacific Decadal Oscillation for the 27 year mode, and Atlantic Multidecadal Oscillation for the 55 year mode. Finally, our analysis suggests that over 70% of the sea ice area loss between the two extreme cases of 1996 (extreme high) and 2007 (extreme low) is caused by internal variability, with half of this variability being related to interdecadal modes.