New York MCTMT
What the MCTMT is
The metropolitan commuter transportation mobility tax is imposed on certain employers and self-employed individuals engaging in business within the Metropolitan Commuter Transportation District (MCTD). The New York State Department of Taxation and Finance administers it for the Metropolitan Transportation Authority. For the tax, the district has two zones. Zone 1 is New York City: New York County (Manhattan), the Bronx, Kings (Brooklyn), Queens and Richmond (Staten Island). Zone 2 is the counties of Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess and Westchester. Rates differ by zone, and you figure each zone separately.
Self-employed: the 2026 threshold
If you are self-employed, including a partner in a partnership, you owe MCTMT when your net earnings from self-employment allocated to a zone exceed the threshold for that zone. The threshold was $50,000 for tax years 2025 and earlier. From tax year 2026 it is $150,000. It is computed for each person, even on a joint return, and for each zone, so you can owe in both zones or in neither. Once you are over the threshold in a zone, the rate applies to all of your net earnings in that zone, not just the part above the line: 0.60% in Zone 1 and 0.34% in Zone 2.
The Department's own examples for 2025 show how it works. With $110,000 of net earnings split $40,000 to Zone 1 and $70,000 to Zone 2, only Zone 2 is over $50,000, and the tax is $70,000 times 0.34%, or $238. With $53,000 in Zone 1 and $57,000 in Zone 2 both zones count: $318 plus $194. Under the 2026 threshold neither example would owe anything. The default example, $200,000 of earnings in Zone 1 for 2026, gives $1,200.
| Net earnings in one zone | Zone 1, 2025 | Zone 1, 2026 | Zone 2, 2025 | Zone 2, 2026 |
|---|---|---|---|---|
| $60,000 | $360.00 | $0.00 | $204.00 | $0.00 |
| $100,000 | $600.00 | $0.00 | $340.00 | $0.00 |
| $150,000 | $900.00 | $0.00 | $510.00 | $0.00 |
| $150,001.00 | $900.01 | $900.01 | $510.00 | $510.00 |
| $200,000 | $1,200.00 | $1,200.00 | $680.00 | $680.00 |
| $400,000 | $2,400.00 | $2,400.00 | $1,360.00 | $1,360.00 |
Our calculation with the Department's rates (0.60% in Zone 1, 0.34% in Zone 2) and thresholds ($50,000 for 2025, $150,000 for 2026), for one person with all earnings in the zone shown.
The MCTMT goes on your New York personal income tax return, Form IT-201 for residents or IT-203 for nonresidents and part-year residents. No tax credit may be used to offset it, and no exemption in other state law applies, except for START-UP NY earnings. Net earnings from self-employment are figured as for federal self-employment tax, and a partner uses the zone allocation percentage from the partnership.
Joint returns and estimated payments
On a joint return each spouse tests the threshold separately, zone by zone, and only the amounts over the line are added together. In the Department's 2025 example you have $75,000 of net earnings in Zone 1 and $45,000 in Zone 2, and your spouse has $51,000 in Zone 1 and $54,000 in Zone 2. Both Zone 1 amounts are over $50,000, so $126,000 is taxed in Zone 1; in Zone 2 only your spouse's $54,000 counts. On our calculation that is $756.00 plus $183.60. With the 2026 threshold of $150,000 the same couple would owe nothing. Tick the joint box in the calculator to enter a spouse.
Estimated MCTMT is paid with your New York estimated income tax. For 2026 the four installments are due April 15, June 15 and September 15, 2026, and January 15, 2027, and the IT-2105 instructions say you must make estimated MCTMT payments if you expect to owe any MCTMT for the year after the amount a partnership pays for you.
Employers: the payroll tiers since July 1, 2025
An employer owes MCTMT for a quarter when it must withhold New York State income tax and its payroll expense for covered employees in both zones together is more than $312,500 in that calendar quarter. The tax for the quarter is the Zone 1 payroll times the Zone 1 rate plus the Zone 2 payroll times the Zone 2 rate, where each rate depends on how much payroll the employer has in that zone. For quarters beginning on or after July 1, 2025 the tiers are:
| Payroll expense in the zone for the quarter | Zone 1 rate | Zone 2 rate |
|---|---|---|
| Over $0 to $375,000 | 0.055% | 0.055% |
| Over $375,000 to $437,500 | 0.115% | 0.115% |
| Over $437,500 to $2,500,000 | 0.6% | 0.34% |
| Over $2,500,000 | 0.895% | 0.635% |
From the Department's Tables 1b and 2b. Local government employers pay 0.60% instead of 0.895% on Zone 1 payroll over $2,500,000 and are not subject to MCTMT for Zone 2 employees; this calculator covers other employers.
For earlier quarters the rates were 0.11% up to $375,000, 0.23% up to $437,500, and then 0.60% in Zone 1 or 0.34% in Zone 2. The Department's example for the new tiers: $450,000 of Zone 1 payroll and $200,000 of Zone 2 payroll gives $450,000 times 0.60% plus $200,000 times 0.055%, or $2,810 for the quarter. Because the rate applies to the whole zone payroll, there is a jump at $2,500,000: on our calculation, Zone 1 MCTMT is $15,000 at exactly $2,500,000 of quarterly payroll and $22,375 one dollar above it.
Some employers are not subject to the tax at all, including federal agencies and instrumentalities, the United Nations, interstate agencies, federally chartered credit unions, household employers for their household employees, public school districts and other eligible schools, and public libraries. Returns and payments are due each quarter on April 30, July 31, October 31 and January 31, with no extensions, and an employer that is not subject for a quarter does not file for it.
Other New York City area taxes
MCTMT is only one of the taxes on work in the city and its suburbs. Self-employed city residents also pay the city income tax, covered in the NYC income tax guide, and Yonkers has its own resident and nonresident income tax. For the federal and state side of self-employment income see the self-employment tax calculator and the quarterly estimated taxes calculator, and for take-home pay in the city the New York City salary calculator. Commuters can compare working in New York and living in New Jersey or Connecticut.
Questions
MCTMT FAQ
What is the MCTMT tax rate for 2026?
For the self-employed, 0.60% of net earnings from self-employment allocated to Zone 1 and 0.34% of those allocated to Zone 2, if the earnings in the zone exceed $150,000. Employers pay 0.055% to 0.895% of payroll depending on the zone and the payroll bracket.
What is the MCTMT threshold for self-employed people?
$150,000 of net earnings from self-employment in a zone for tax year 2026 and later, up from $50,000 for 2025 and earlier. It is computed for each person and each zone, even on a joint return.
Which counties are in MCTMT Zone 1 and Zone 2?
Zone 1 is the five boroughs of New York City. Zone 2 is Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess and Westchester counties.
How is the MCTMT calculated?
Multiply the net earnings or payroll in each zone by that zone's rate and add the two. For self-employed people the rate applies to all earnings in a zone once they exceed the threshold; for employers the rate depends on the zone payroll bracket.
Can credits reduce the MCTMT?
No. The Department says no tax credit may be used to offset the MCTMT, and no exemption in other state law applies except for START-UP NY earnings.
When do employers pay MCTMT?
Quarterly: by April 30, July 31, October 31 and January 31. No extensions are allowed, and an employer is subject only in a quarter when its payroll in the district is over $312,500.
- Sources: NYS DTF, Metropolitan commuter transportation mobility tax · Employers: MCTMT · New York City, Yonkers, and MCTMT · IT-201 instructions (2025), lines 54a to 54d · IT-2105 instructions (2026).
- 🔄 Last updated September 28, 2026
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