Images wont upload

I have a fresh new install of WP 4.0.1 with a custom theme. The images will not upload. I looked at documentation from a few years back and it suggest going the the admin panel>Setting>Misc and adding /upload to where images are stored. I dont have a Misc folder under settings. Also I have checked on my server in the wp-content/upload and the folder is indeed there. Anyone know what to do?

PS Also tried to disable plugins and tried to upload a small image no luck!