Common Pay Agent – metropolitan commuter transportation mobility tax (MCTMT)
This webpage reflects the recent legislative changes to the MCTMT including the revised rates and special rules for local government employers.
An agent authorized by the Tax Department to file and pay withholding tax on behalf of an employer may also report and pay the employer's metropolitan commuter transportation mobility tax (MCTMT) as an agent. This appointment is the equivalent to the Internal Revenue Service appointment using Form 2678, Employer/Payer Appointment of Agent, authorized under Internal Revenue Code § 3504.
An agent must calculate the MCTMT due based separately on:
- the payroll expense of its own organization; and
- the payroll expense of each employer the agent is reporting for.
See the MCTMT page for Employers for general information on who the tax applies to, definitions, and due dates.
Calculating the tax
The Metropolitan Commuter Transportation District (MCTD) is divided into two zones:
- Zone 1 includes the counties of New York (Manhattan), Bronx, Kings (Brooklyn), Queens, and Richmond (Staten Island).
- Zone 2 includes the counties of Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester.
To be subject to the MCTMT for the quarter, the employer must have payroll expense in the entire MCTD greater than $312,500.
An agent must calculate the MCTMT due based separately on the payroll expense of its clients and its own payroll expense.
Step 1: Determine if the payroll expense in the MCTD is greater than $312,500 separately for both the agent’s organization and for each employer the agent is reporting for.
Step 2: For each zone, calculate the payroll expense for all covered employees for each calendar quarter for the agent's organization and for each of the employers the agent is reporting for.
Step 3: Multiply each zone's payroll expense amount by the applicable MCTMT rate from the tables below.
Step 4: Add together the MCTMT amounts calculated for the agent's organization and for each employer the agent is reporting for. This is the total MCTMT due.
Table 1a: Zone 1 MCTMT for quarters beginning before July 1, 2025
| Payroll expense attributable to Zone 1 | MCTMT Rate |
|---|---|
| Over $0 but not over $375,000 | 0.11% (0.0011) |
| Over $375,000 but not over $437,500 | 0.23% (0.0023) |
| Over $437,500 | 0.60% (0.0060) |
Table 1b: Zone 1 MCTMT for quarters beginning on or after July 1, 2025
| Payroll expense attributable to Zone 1 | MCTMT Rate |
|---|---|
| Over $0 but not over $375,000 | 0.055% (0.00055) |
| Over $375,000 but not over $437,500 | 0.115% (0.00115) |
| Over $437,500 but not over $2,500,000 | 0.60% (0.0060) |
| Over $2,500,000 | 0.895% (0.00895) |
Important: Local government employers are not subject to the 0.895% rate for payroll expense in Zone 1 over $2,500,000. Instead, they are subject to an MCTMT rate of 0.60% for payroll expense in Zone 1 that exceeds $2,500,000. See Employers: metropolitan commuter transportation mobility tax (MCTMT) for the definition of a local government employer.
Table 2a: Zone 2 MCTMT for quarters beginning before July 1, 2025
| Payroll expense attributable to Zone 2 | MCTMT Rate |
|---|---|
| Over $0 but not over $375,000 | 0.11% (0.0011) |
| Over $375,000 but not over $437,500 | 0.23% (0.0023) |
| Over $437,500 | 0.34% (0.0034) |
Table 2b: Zone 2 MCTMT for quarters beginning on or after July 1, 2025
| Payroll expense attributable to Zone 2 | MCTMT Rate |
|---|---|
| Over $0 but not over $375,000 | 0.055% (0.00055) |
| Over $375,000 but not over $437,500 | 0.115% (0.00115) |
| Over $437,500 but over $2,500,000 | 0.34% (0.0034) |
| Over $2,500,000 | 0.635% (0.00635) |
Important: Local government employers in Zone 2 are not subject to the MCTMT.
Example: An employer has payroll expense within the MCTD of $650,000. $450,000 of that payroll expense is attributable to Zone 1 and $200,000 of that payroll expense is attributable to Zone 2. The employer’s MCTMT liability is $2,810 ([$450,000 x 0.60%] + [$200,000 x 0.055%]).
PrompTax program participants who cannot calculate their quarterly payroll expense at the beginning of a calendar quarter should see Employers participating in the PrompTax program.
Agent's PrompTax payments
The agent will need to continue making PrompTax payments if they participate in the PrompTax program.
Note: The optional MCTMT calculator will not properly calculate the tax. Calculate the payment as instructed above.
Agent's quarterly MCTMT return
- Filing due dates for the MCTMT quarterly returns are the same as any other employer.
- The agent must file the MCTMT returns using the Tax Department's Online Services MCTMT Upload. See the file formatting instructions for how to format the file.
Note: If any of the agent's clients are a START-UP NY business, they cannot be included in the Upload.
- The agent must separately Web File Quarterly MCTMT returns for each START-UP NY business. See the START-UP NY MCTMT Exemption on how to calculate the MCTMT due.
- In addition, the agent must separately report eligible employees for each START-UP NY business annually by January 31. See the START-UP NY Employer Information web page for employer requirements.