What Is the MCTMT Tax?

The Metropolitan Commuter Transportation Mobility Tax (MCTMT) was enacted in 2009 to provide funds for transportation, taxing income earned from wages and self-employment in 12 downstate counties in the state of New York.

The following counties are collectively known as MCTD or Metropolitan Commuter Transport District: New York City (the counties of New York, Kings, Bronx, Richmond, and Queens) and the counties of Westchester, Putnam, Suffolk, Orange, Rockland, Nassau, and Dutchess.

Who has to pay MCTMT?

Employers, not employees, are required to pay MCTMT. Employers pay MCTMT only when their payroll expense per quarter is in excess of $312,500. Please refer to the New York State Department of Taxation and Finance for more information.

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How is MCTMT calculated?

Graduated rates apply for employers, with the MCTMT rate varying in accordance with set payroll tax brackets. Employers with a payroll expense in excess of $312,500 but less than $375,000 are taxed at a rate of .11%. Those with a payroll expense of more than $375,000 but under $437,500 will be taxed at a rate of .23%. The full .34% applies only to employers whose wages per quarter are in excess of $437,500. For more information, please refer to the New York State Dept. of Taxation and Finance.

How do you pay MCTMT?

Employers can file Form MTA-305 or create an Online Business Services account to file online.

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This article is updated from its original publication date of July 27, 2012.

This is not intended as legal advice; for more information, please click here.

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