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START-UP NY: metropolitan commuter transportation mobility tax (MCTMT) exemption for self-employed individuals (including partners)
This webpage is effective for calendar years beginning before January 1, 2026. Updates for the legislative changes that go into effect for calendar years beginning on or after January 1, 2026, will be made at a later date. Check back soon or subscribe for the latest news and updates.
The metropolitan commuter transportation mobility tax (MCTMT) exemption eliminates the MCTMT on your net earnings from self-employment attributable to your approved business location within the Metropolitan Commuter Transportation District (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 and claim the exemption
You must still report your annual MCTMT information if your total net earnings from self-employment allocated to the MCTD Zone 1 or Zone 2 (both including earnings 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 Zone 1 or Zone 2 are excluded from the computation of your MCTMT liability.
Complete Form IT-6-SNY, Metropolitan Commuter Transportation Mobility Tax (MCTMT) for START-UP NY, to report the amount of net earnings from self-employment earned in the tax-free NY area(s) within Zone 1 or Zone 2 of the MCTD. See the Metropolitan commuter transportation mobility tax (MCTMT) individual definitions for more information.
Any remaining net earnings subject to the MCTMT, not earned in a tax-free NY area in Zone 1 or Zone 2, will be reported on your New York State personal income tax return, lines 54a and 54b of Form IT-201, Resident Income Tax Return, or lines 52b and 52c of Form IT-203, Nonresident and Part-Year Resident Income Tax Return.
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