12 May 2025 New York increases the Metropolitan Commuter Transportation Mobility Tax rate for large employers effective July 1, 2025 On May 9, 2025, New York Governor Kathy Hochul approved the fiscal year 2025—2026 budget (A3009C), which, effective July 1, 2025, adjusts the rate employers will pay for the Metropolitan Commuter Transportation Mobility Tax (MCTMT), with increases for most large employers and decreases for small employers. The increase for large employers allows the state to fully fund a five-year $68.4 billion capital investment plan for improvements to New York's Metropolitan Transportation Authority, the largest investment in New York's transportation history. (Governor Hochul press release, May 9, 2025.) The current MCTMT rates and those effective July 1, 2025, are shown in the chart below. Metropolitan Commuter Transportation Mobility Tax (MCTMT) Current rates compared to rates effective July 1, 2025 Zones and Counties | January 1, 2025, through June 30, 2025 | July 1,2025 | Metropolitan Commuter Transportation District (MCTD) Zone | Counties | Payroll Expense in any Calendar Quarter | Tax Rate | Payroll Expense in any Calendar Quarter | Tax Rate | Zone 1 | Bronx, Kings, New York, Queens and Richmond | Over $312,500 but not over $375,000 | 0.11% | Over $312,500 but not over $375,000 | 0.055% | Over $375,000 but not over $437,500 | 0.23% | Over $375,000 but not over $437,500 | 0.115% | Over $437,500 | 0.60% | Over $437,500 but not over $2,500,000 | 0.600% | | Over $2,500,0001 | 0.895% | Zone 2 | Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk and Westchester | Over $312,500 but not over $375,000 | 0.11% | Over $312,500 but not over $375,000 | 0.055% | Over $375,000 but not over $437,500 | 0.23% | Over $375,000 but not over $437,500 | 0.115% | Over $437,500 | 0.34% | Over $437,500 but not over $2,500,000 | 0.340% | | Over $2,500,0001 | 0.635% |
1 Local government employers within MCTD Zone 1 with a payroll expense over $2,500,000 in any calendar quarter are subject to an MCTMT rate of 0.60%. Local government employers operating in Zone 2 are exempt from the MCTMT. Ernst & Young LLP insights The MCTMT rates effective July 1, 2025 will be published to the Department of Taxation and Finance's website. | * * * * * * * * * * | | Contact Information | For additional information concerning this Alert, please contact: Workforce Tax Services - Employment Tax Advisory Services | | Published by NTD’s Tax Technical Knowledge Services group; Jennifer Mannetta, legal editor |
Document ID: 2025-1044 |
