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.
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.
