MCTMT Changes Effective July 1 2025

A provision in the recently-enacted New York State budget for the 2025 to 2026 fiscal year changes the rate of tax for employers who are subject to the metropolitan commuter transportation mobility tax (MCTMT), effective for quarters beginning on or after July 1, 2025.

There is no change to the rate of MCTMT tax for the 2025 tax year for taxpayers with self-employment income.

Smaller employers may see their rate decline slightly, while larger employers will be subject to a new rate that is substantially higher.

For employers in zone 1, which includes the five boroughs of New York City (Manhattan, Bronx, Brooklyn, Queens and Staten Island), the current rate of tax is 0.11% for employers with payrolls over $312,500 but not over $375,000. This rate will decline to 0.055%, effective July 1, 2025.

The zone 1 rate for employers with payrolls over $375,000 but not over $437,500, the current rate of tax is 0.23%, and this rate will decline to 0.115%, effective July 1, 2025.

The zone 1 rate for employers with payrolls over $437,500 but not over $2,500,000, the current rate of tax is 0.60%, and this rate will remain unchanged.

The zone 1 rate for employers with payrolls over $2,500,000, the current rate of tax is 0.60%, and this rate will increase to 0.895%, effective July 1, 2025.

For employers in zone 2, which includes Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk and Westchester counties, the current rate of tax is 0.11% for employers with payrolls over $312,500 but not over $375,000. This rate will decline to 0.055%, effective July 1, 2025.

The zone 2 rate for employers with payrolls over $375,000 but not over $437,500, the current rate of tax is 0.23%, and this rate will decline to 0.115%, effective July 1, 2025.

The zone 2 rate for employers with payrolls over $437,500 but not over $2,500,000, the current rate of tax is 0.34%, and this rate will remain unchanged.

The zone 2 rate for employers with payrolls over $2,500,000, the current rate of tax is 0.34%, and this rate will increase to 0.635%, effective July 1, 2025.