The metropolitan commuter transportation mobility tax (MCTMT) is a 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 for the first quarter of 2012 (1/1/12-3/31/12) or prior, or
- $312,500 in any calendar quarter beginning on or after April 1, 2012.
The tax does 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
- effective April 1, 2012, any eligible educational institution including;
- a public school district,
- Board of Cooperative Educations Services (BOCES),
- a public elementary or secondary school,
- a school that serves students with disabilities of school age as defined in Article 85 or 89 of the Education Law, or
- a nonpublic elementary or secondary school that provide instruction in grade one or above.
Calculating the tax
- For the first quarter of 2012 (1/1/12-3/31/12) and prior, your MCTMT due is .34%(.0034) of your payroll expense for all covered employees for each calendar quarter.
- For calendar quarters beginning on or after April 1, 2012, your MCTMT due is your payroll expense for all covered employees for each calendar quarter multiplied by applicable MCTMT rate from the table below.
Over $312,500 but not over $375,000
Over $375,000 but not over $437,500
- For calendar quarters beginning on or after April 1, 2012, mandatory and voluntary PrompTax program participants may not know their quarterly payroll expense on the PrompTax payment due date. Therefore, you may follow the rules below to avoid an underpayment penalty for MCTMT PrompTax payments.
- You may use the previous quarter's payroll expense to determine if you expect to be subject to the MCTMT and must make MCTMT PrompTax payments in the current quarter. Therefore, if your payroll expense in the previous quarter did not exceed $312,500, you are not required to make MCTMT PrompTax payments in the current quarter.
- If you did not make any MCTMT payments during the current quarter because your previous quarter's payroll expense did not exceed $312,500, and your actual payroll expense for the current quarter exceeds $312,500, you must pay the tax due with your quarterly return.
- You may use the MCTMT rate from the chart above that applied to your payroll expense for the previous quarter to compute the MCTMT PrompTax payments due in the current quarter. (For the second calendar quarter of 2012, employers may use the MCTMT rate that would have applied to their payroll expense for the first calendar quarter of 2012, as if the new rates were in effect.)
- At the end of each quarter, you must compute your MCTMT liability using the applicable rate that applies to your payroll expense for the quarter. Remit any unpaid tax with your quarterly return.
When to file and pay
- Mandatory withholding tax PrompTax program filers must make their MCTMT PrompTax payments on the same date as your Withholding Tax PrompTax payments. You are still required to file the quarterly MCTMT return, Form MTA-305, Employer's Quarterly Metropolitan Commuter Transportation Mobility Tax Return.
- If you enroll voluntarily in the PrompTax program for withholding tax, you can choose to pay on the same date as your PrompTax withholding tax payments. If not, you must pay with your quarterly MCTMT return.
Quarterly returns are due as follows:
|January 1 to March 31
|April 1 to June 30
|July 1 to September 30
|October 1 to December 31
When the due date falls on a Saturday, Sunday, or legal holiday, you may file on the next business day.
No extensions of time to file or pay the tax are allowed.
- For calendar quarters beginning on or before January 1, 2012, once an employer files (or filed) a quarterly MCTMT return, the employer is required to continue to file quarterly MCTMT returns for each subsequent quarter, even if no MCTMT is due, unless the employer permanently ceased paying wages subject to the MCTMT.
- For calendar quarters beginning on or after April 1, 2012, an employer not subject to the MCTMT for a quarter is not required to file a quarterly MCTMT return for that quarter. However, if an employer becomes subject to the MCTMT in a subsequent quarter, the employer must file a quarterly return and pay the tax due.
- Employers who have made any MCTMT payments during the quarter, or that have an overpayment carried over from a previous quarter must file a quarterly return to request a refund (or credit to the next quarter if you anticipate owing MCTMT in that quarter).
How to file and pay
If you are required or choose to pay the tax on the same schedule as your PrompTax Withholding tax payments, you must use the PrompTax system and pay by one of three available options: ACH debit, ACH credit or Fedwire. There is no paper (certified check) payment option.
Employer's quarterly MCTMT return
- File and pay online: Web File your quarterly return online and pay directly from your bank account. (To Web File you must create an Online Services business account.)
- File paper Form MTA-305, Employer's Quarterly Metropolitan Commuter Transportation Mobility Tax Return (MCTMT forms), and pay by check or money order.
- 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 and MTA-305 on your payment.
- Do not combine your MCTMT payment with your withholding tax payment. You must submit a separate MCTMT payment.
- You do not have to attach a listing of covered employees when filing and paying the tax.
For more information, see: