The metropolitan commuter transportation mobility tax (MCTMT) is a new tax imposed on certain employers and self-employed individuals engaging in business within the metropolitan commuter transportation district (MCTD). This department administers the tax for the Metropolitan Transportation Authority. (The MCTD includes the counties of New York (Manhattan), Bronx, Kings (Brooklyn), Queens, Richmond (Staten Island), Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester.)

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The tax applies to you if: you’re required to withhold New York State income tax from wages; and your payroll expense exceeds $2,500 in any calendar quarter.

Video: Information for Employers

The tax does not apply to you if you’re:

• an agency or instrumentality of the United States;
• the United Nations; or
• an interstate agency or public corporation created pursuant to an agreement or compact with another state or Canada.

In addition, the following employers are not subject to the MCTMT:

• household employers are not subject to MCTMT on wages paid to household employees
• federally chartered credit unions are exempt from the MCTMT

Effective date:

• March 1, 2009

Calculating the tax

• Your MCTMT due is .34% (.0034) of your payroll expense for all covered employees for each calendar quarter.

When to file and pay

You must file and pay for each calendar quarter as follows:

No extensions of time to file or pay the tax are allowed.

• You are not required to file until the first quarter when your payroll expense exceeds $2,500. However, if you previously filed but have a payroll expense of less than $2,500 for a later quarter, you must file a return showing no tax due.

How to file and pay

• File online: You can Web File Form MTA-305, Employer’s Quarterly Metropolitan Commuter Transportation Mobility Tax Return and pay directly from your bank account.  (To Web File you must create an Online Services business account.)
• File Form MTA-305, Employer’s Quarterly Metropolitan Commuter Transportation Mobility Tax Return (MCTMT forms) and pay by check or money order.
• You must submit a separate MCTMT payment.  Do not combine your withholding tax payment with your MCTMT payment.
• Make your check or money order payable in U.S. funds to Commissioner of Taxation and Finance for the total payment due. Write your EIN on your payment.
• You can choose to pay this tax using the PrompTax program if you currently use the PrompTax program to file New York State withholding tax.  See employers participating in the PrompTax program for details.
• You do not have to attach a listing of covered employees when filing and paying the tax.

For more information, see:

• Pub 420, Guide to the Metropolitan Commuter Transportation Mobility Tax 
• MCTMT forms and instructions
• MCTMT FAQs
• MCTMT TSB-Ms