New York Metropolitan Commuter Transportation Tax

Overview

The Metropolitan Commuter Transportation Mobility Tax (MCTMT) is a tax on employers in the Metropolitan Commuter Transportation District. The tax rate is based on quarterly payroll expense.

For complete information, visit: https://www.tax.ny.gov/bus/mctmt/emp.htm

Tax Forms

Instructions: https://www.tax.ny.gov/pdf/current_forms/mctmt/mta305i.pdf
Form MTA-305: https://www.tax.ny.gov/pdf/current_forms/mctmt/mta305_fill_in.pdf

Effective Date

This tax is effective beginning with the second quarter of 2012.

Tax Rate Schedule

The MCTMT rate depends on your quarterly payroll expense and your location within the Metropolitan Commuter Transportation District. There are two zones with different rate structures:

Zone 1 (New York City)

Zone 1 includes the five boroughs: Manhattan, Bronx, Brooklyn, Queens, and Staten Island.

Quarterly Payroll Expense	MCTMT Rate
$312,500 or less	Not subject to MCTMT
Over $312,500 but not over $375,000	0.11% (0.0011)
Over $375,000 but not over $437,500	0.23% (0.0023)
Over $437,500	0.60% (0.0060)

Zone 2 (Suburban Counties)

Zone 2 includes: Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester counties.

Quarterly Payroll Expense	MCTMT Rate
$312,500 or less	Not subject to MCTMT
Over $312,500 but not over $375,000	0.11% (0.0011)
Over $375,000 but not over $437,500	0.23% (0.0023)
Over $437,500	0.34% (0.0034)

Exemption Threshold

If your payroll expense for the quarter is $312,500 or less, you are not subject to the MCTMT for that quarter.

Setting Up in ProPay

Go to Employer > Employer Setup > Screen 2 (State and Local Taxes).
Add MCTMT as a locality for any employer who is subject to this tax.

ProPay automatically calculates the MCTMT tax liability on the last pay date of each quarter if wages exceed the threshold limits.

Tax Calculation

The system automatically:

Tracks quarterly payroll expense
Determines the applicable rate based on the rate schedule
Calculates tax liability on the last pay date of the quarter
Only assesses tax if payroll exceeds $312,500 for the quarter

Important Notes

This is an employer-only tax (no employee withholding)
Tax is calculated and assessed quarterly
Only employers in the Metropolitan Commuter Transportation District are subject to this tax
ProPay handles all calculations automatically when MCTMT locality is enabled