Metropolitan commuter transportation mobility tax (MCTMT) (Article 23)

New rates for employers: There are new MCTMT rates for tax quarters beginning on or after July 1, 2025. Also, a new bracket is established for payroll expenses over $2.5 million.

Local government employers: Local government employers whose covered employees are within MCTD Zone 2 are not subject to the MCTMT. Additionally, the new rate for employers whose payroll expense is over $2.5 million attributable to Zone 1 does not apply to local government employers.

For more information, visit Employers: metropolitan commuter transportation mobility tax (MCTMT) .

Self-employed individuals: For tax years beginning on or after January 1, 2026, the MCTMT rates on net earnings from self-employment for individuals engaging in the business within the MCTD are:

0.60% (0.0060) of the net earnings attributable to the MCTD within Zone 1, if such earnings exceed $150,000 for the tax year, and

0.34% (0.0034) of the net earnings attributable to the MCTD within Zone 2, if such earnings exceed $150,000 for the tax year.

The $150,000 thresholds are computed on an individual basis for each zone, even for taxpayers filing a joint income tax return.

For more information, visit New York City, Yonkers, and MCTMT .

[Part VV of Chapter 59 of the Laws of 2025; Tax Law §§ 800(b)(5), 800(f) and 801(a)]