Metropolitan Commuter Transportation Mobility Tax (MCTMT) or MT-305 in New York

The New York Metropolitan Commuter Transportation Mobility Tax (MCTMT) is paid by certain employers and self-employed individuals in New York’s metropolitan commuter transportation district.

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The New York Metropolitan Commuter Transportation Mobility Tax (MCTMT) is paid by certain employers and self-employed individuals in New York’s metropolitan commuter transportation district.

Employers Subject to MCTMT

The MCTMT tax applies to each employer who meets the following requirements:

  • Conducts business in one or more of the following counties: New York (Manhattan), Bronx, Kings (Brooklyn), Queens, Richmond (Staten Island), Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester.
  • Is required to withhold NYS income tax from employee wages.
  • Has a payroll expense that exceeds:
    • $ 2 ,500 for the first quarter of 2012 ( 1 / 1 /12 – 3 / 1 /12) and prior quarters, or
    • $312,500 in any calendar quarter beginning on or after April 1, 2012.

Determining MCTMT Tax Amounts

The MCTMT is a quarterly tax based on an employer’s quarterly payroll expense for covered employees. Employer rates depend on the value of payroll in the quarter:

Total Payroll Expense for Quarter MCTMT Rate
$312,00 to $375,00 0 .11%
$375,00 to 437,500 0 .23%
Over $437,500 0 .34%

Employers can pay a portion of their estimated MCTMT taxes at the same time as normal withholding (i.e., for each payroll), or in a lump sum at the end of the quarter. Since the true rate can’t be determined until the end of the quarter using Form NYS-45, payments made on estimated quarterly payroll expenses may differ from the actual expense. In this case, an additional amount is due at the end of the quarter.

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