As a reminder for covered New York employers and self-employed individuals operating within the Metropolitan Commuter Transportation District (MCTD), the Metropolitan Commuter Transportation Mobility Tax (MCTMT) applies to those with business activity in New York City (all five boroughs) and the surrounding counties: Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and Westchester.

What’s New? Effective July 1, 2025, MCTMT rates have changed. These updates:

• Apply to employers with quarterly payroll expenses over $312,500 in the MCTD.
• Increase rates for large employers.
• Lower rates for smaller employers.
• Support a $68.4 billion investment in New York’s transit infrastructure.

Zone Breakdown & Rates

• Zone 1 (NYC boroughs):

• Over $0 – $375,000: 0.055%
• $375,001 – $437,500: 0.115%
• $437,501 – $2.5M: 0.6%
• Over $2.5M: 0.895% (0.6% for local gov)

• Zone 2 (surrounding counties – Local governments in Zone 2 are exempt):

• Over $0 – $375,000: 0.055%
• $375,001 – $437,500: 0.115%
• $437,501 – $2.5M: 0.34%
• Over $2.5M: 0.635%

Exemption: Employers are exempt from the MCTMT if their combined quarterly payroll expenses in the MCTD are $312,500 or less.

Filing Deadlines: MCTMT is filed quarterly (no extensions are allowed. If no tax is due, no return is required—unless requesting a refund or credit):

• Q1 (Jan–Mar): Due April 30.
• Q2 (Apr–Jun): Due July 31.
• Q3 (Jul–Sep): Due October 31.
• Q4 (Oct–Dec): Due January 31.

For additional information, such as how to calculate the tax, please visit the resources below:

• How to File and Pay
• Calculating the Tax
• New York – Employers: metropolitan commuter transportation mobility tax (MCTMT)
• MCTMT forms and instructions

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