New York Metropolitan Commuter Transportation Mobility Tax (MCTMT)
Understand the new MCTMT zones and tax rates impacting payroll calculations for employers.
Change to Metropolitan Commuter Transportation District Zones
Effective July 1, 2023, the Metropolitan Commuter Transportation District (MCTD) has been divided into two distinct zones. Prior to this date, the specific zone in which an employer operated did not affect the MCTD tax calculation. However, with the new structure, the zone an employer conducts business in now directly impacts tax calculations and how payroll expenses for covered employees are attributed.
About MCTMT Zones and Tax Rates
As of July 1, 2023, the MCTD is now separated into Zone 1 and Zone 2. This distinction affects the Metropolitan Commuter Transportation Mobility Tax (MCTMT) rates and how employers report payroll taxes. The most significant change is that employers are required to determine the specific zone their employees are located in to calculate the tax accurately.
Zone 1
The MCTMT rate for employers doing business in Zone 1 has increased from 0.34% to 0.60%. This applies to employers operating in the counties of New York (Manhattan), Bronx, Kings (Brooklyn), Queens, and Richmond (Staten Island).
Zone 2
For employers in Zone 2, which includes the counties of Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester, the highest tax rate remains 0.34%.
How Check Handles MCTMT
Onboarding
When employers onboard or interact with the console, they will now be prompted to answer two key questions regarding the MCTMT— one for each zone. This is a change from the previous process where only one question was asked. Employers will need to select the correct tax rate for both Zone 1 and Zone 2, as applicable.
Selecting the Correct Tax Rate
Employers should follow these guidelines when selecting rates:
- Employers with payroll under $312,500 per quarterIf the employer’s total quarterly payroll expense is less than $312,500, they should select 0% for both zones, regardless if they have employees within the district.
- Employers with payroll over $312,500 per quarter
- 0.60% for Zone 1
- 0.34% for Zone 2
Employers must choose the appropriate rate based on their zone:
- If a Zone is Not Applicable
If an employer has no covered employees in a particular zone, they should select 0% for that zone. Employers should refer to the zone maps provided to identify where their covered employees are located.
Payroll and Tax Filing
Each Pay Period MCMT will be calculated, once the employer crosses the wage threshold of $312,500.
At the End of the Quarter, Check will determine final tax liability by cross-checking wages per zone and collecting or refunding any variance determined after reviewing the actual quarterly payroll expense for each zone. Tax amounts will be collected and remitted quarterly alongside a quarterly tax reporting. The NY Department of Taxation and Finance has updated their filing returns and requested that each employer report each zone separately.
Last updated on January 31, 2025