The New York Department of Taxation and Finance released 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.
Interested in more state and local payroll coverage? PayrollOrg’s PayState Update eNewsletter is perfect for you.
Lorelei Abernathy, Esq., is Editor of PayState Update and Editor of Payroll Information Resources for PayrollOrg.
