---
title: New York Metropolitan Commuter Transportation Mobility Tax Rate Changes Effective July 1
description: New York updates MCTMT rates effective July 1, 2025. Learn the new payroll tax rates for Zones 1 and 2, employer exemptions, and quarterly filing deadlines from the NY Department of Taxation and Finance.
image: https://www.payroll.org/images/default-source/default-album/new-york-metropolitan-commuter-transportation-mobility-tax-rate-changes-effective-july-116666f7c4dfc4b0d97286d7febdbd3ff.jpg?sfvrsn=369a248e_0
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By [Lorelei Abernathy, Esq.](https://blogs.payroll.org/pay-news-now/author/lorelei-abernathy-esq) on Jul 4, 2025 8:05:13 AM

# New York Metropolitan Commuter Transportation Mobility Tax Rate Changes Effective July 1

The New York Department of Taxation and Finance [**released**](https://www.tax.ny.gov/bus/mctmt/emp.htm) updated amounts for the Metropolitan Commuter Transportation Mobility Tax (MCTMT). The MCTMT is an employer-paid tax based on payroll expenses per calendar quarter.

Employers pay the MCTMT based on the county in New York where payroll expenses are attributable:

- Zone 1 covers payroll expenses attributable to the counties of Bronx, Kings (Brooklyn), New York (Manhattan), Queens, and Richmond (Staten Island)
- Zone 2 covers payroll expenses attributable to the counties of Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and Westchester

Effective July 1, 2025, the following rates are in effect:

| **Payroll Expense for Zone 1** | **Tax Rate** |
| --- | --- |
| Over $0 – $375,000 | 0.055% |
| Over $375,000 – $437,500 | 0.115% |
| Over $437,500 – $2,500,000 | 0.6% |
| Over $2,500,000 | 0.895% |
| Over $2,500,000 (local government employers) | 0.6% |

 

| **Payroll Expense for Zone 2\*** | **Tax Rate** |
| --- | --- |
| Over $0 – $375,000 | 0.055% |
| Over $375,000 – $437,500 | 0.115% |
| Over $437,500 – $2,500,000 | 0.34% |
| Over $2,500,000 | 0.635% |

\*Local government employers in Zone 2 are not subject to the MCTMT.

Employers are exempt from the MCTMT if their payroll expenses attributable to both zones combined are less than or equal to $312,500 in any calendar quarter. The taxes are paid quarterly. Taxes for July 1 through September 30 are due October 31.

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Interested in more state and local payroll coverage? PayrollOrg’s [***PayState Update***](https://ebiz.payroll.org/ebusiness/ProductCatalog/Product.aspx?ID=19) eNewsletter is perfect for you.

---

*Lorelei Abernathy, Esq., is Editor of* PayState Update *and Editor of Payroll Information Resources for PayrollOrg.*

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