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Department of Taxation and Finance

START-UP NY Metropolitan Commuter Transportation Mobility Tax (MCTMT) Exemption

Self- Employed Individuals (including Partners)

The MCTMT exemption eliminates the MCTMT on your net earnings from self-employment attributable to your approved business location within the MCTD for a tax benefit period of 10 consecutive years. The exemption begins with the tax year the approved business locates in the tax-free NY area.

How to compute your MCTMT 

You must still report annual MCTMT information if your total net earnings from self-employment allocated to the MCTD (both inside and outside the tax-free NY area) exceed $50,000 for the tax year. However, your net earnings attributable to the tax free NY area within the MCTD are excluded from the computation of your MCTMT liability.

 How to compute your MCTMT 
Step1 Calculate your total net earnings from self-employment in the MCTD, including earnings inside and outside the tax-free NY area. Use this amount to determine if you exceed the $50,000 threshold and are subject to MCTMT.
Step 2 Subtract from your total net earnings the net earnings from self-employment from the tax-free NY area within the MCTD.
Step 3 Multiply the amount calculated in Step 2 by .34%.

Example: Taxpayer A is a partner in two partnerships. Taxpayer A has total net earnings from self-employment within the MCTD of $100,000 of which $60,000 is from a partnership in the tax-free NY area within the MCTD.  Taxpayer A's MCTMT is $136 ($40,000 x .34%).

How to claim the exemption

  • For tax year 2014, you must have an Online Services account and Web File your START-UP NY MCTMT information by the 30th day of the fourth month following the close of your tax year (April 30, 2015, if you are a calendar-year filer).
  • For tax years after 2014, report your MCTMT annual information on your New York State personal income tax return.