MCTMT stands for Metropolitan Commuter Transportation Mobility Tax and only affects businesses in certain areas of
downstate New York. This is a tax that is collected by the State of New York and helps fund transportation provided by the MTA (Metropolitan Transportation Authority) in 12 New York counties.
If you are an employer in one of these 12 counties and have more than $312,500 in payroll expenses in a calendar quarter, then this tax affects you.
The 12 counties involved are broken down into 2 zones. Zone 1 contains New York, Bronx, Kings, Queens, and Richmond counties. Zone 2 contains Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester counties.
Below are the MCTMT rates for businesses in each zone.
Zone 1:
For Quarters Beginning before July 1, 2025
Over $0 but not over $375,000 – .11%
Over $375,000 but not over $437,500 – .23%
Over $437,500 – .60%
For Quarters Beginning on or after July 1, 2025
Over $ but not over $375,000 – .055%
Over $375,000 but not over $437,500 – .115%
Over $437,500 but not over $2,500,000 – .60%
Over $2,500,000 – .895%
Note: Local government employers are not subject to the .895% in Zone 1, but are instead charged the .60%
Zone 2:
For Quarters Beginning before July 1, 2025
Over $0 but not over $375,000 – .11%
Over $375,000 but not over $437,500 – .23%
Over $437,500 – .34%
For Quarters on or after July 1, 2025
Over $0 but not over $375,000 – .055%
Over $375,000 but not over $437,500 – .115%
Over $437,500 but not over $2,500,000 – .34%
Over $2,500,000 – .635%
Note: Local government employers in Zone 2 are not subject to any MCTMT
For further questions, please reach out to your trusted financial professional.
Written by Christina Larson, CPA