The Metropolitan Commuter Transportation Mobility Tax (MCTMT) tax is imposed on certain employers and those individuals who are self-employed and engaging in business within the metropolitan commuter transportation district.
How do I know if this tax applies to me?
If you are an employer/self-employed individual, this tax will applies to you if:
- you are required to withhold any New York State income tax from wages; and
- your payroll expenses exceeded $312,500 in any calendar quarter
- you are a self-employed individual (including partners) with net earnings from the MCTD that exceeds $50,000
This tax will not apply to you if you are:
- an agency or instrumentality of the United States
- the United Nations
- an interstate agency or public corporation created pursuant to an agreement or compact with another state or Canada
- a federally chartered credit union
- a household employer on wages paid to household employees; or
- any of the following eligible educational institutions:
- a public school district
- Board of Cooperative Educations Services (BOCES)
- a public or elementary school
- a school that serves students with disabilities of school age (defined in Article 85 or 89 of the Education Law)
- a nonpublic elementary or secondary school that provides instruction for grade one or about
- all public library systems and all public and free association libraries (beginning with the first quarter of 2016)
How do I calculate the amount of tax I owe?
For employers, the amount of MCTMT tax due is the amount of your payroll expenses for all covered employees for each calendar quarter multiplied by the applicable MCTMT rate found below:
- .11% (.0011) if your payroll expense was over $312,500 but not over $375,000
- .23% (.0023) if your payroll expense was over $375,000 but not over $437,500
- .34% (.0034) if your payroll expense was over $437,500
For more information on how to calculate this rate for self-employed individuals, please refer to the New York Department of Taxation and Finance official website.