Metropolitan Commuter Transportation Mobility Tax (Commonly Referred to as “MTA Payroll Tax“)
Since 2009, New York State has imposed a new tax known as the Metropolitan Commuter Transportation Mobility Tax (MTA Payroll Tax) on certain employers and self-employed individuals engaging in business within the Metropolitan Commuter Transportation District (MCTD).
The MCTD includes the 5 boroughs of New York City (Manhattan, Bronx, Brooklyn, Queens and Staten Island), Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester counties.
Under the new law which became effective on April 1, 2012, the MTA Tax Applies To:
- Employers who are required to withhold New York State income tax from employee wages and whose payroll expense exceeds $312,500 in any calendar quarter; and
- Individuals with net earnings from self-employment allocated to the MCTD
that exceed $10,000 for the tax years 2009, 2010, or 2011, and $50,000 for tax years beginning on or after January 1, 2012.
MTA Tax Rate:
- Employers: 0.34% of an employer’s payroll expense for employees employed within the MCTD
- Individuals: 0.34% of net earnings from self-employment allocated to the MCTD during the tax year
An employer is not permitted to deduct from an employee’s wages or compensation any amount representing the MTA tax imposed on the employer.
Any exemption from taxes specified in any other New York state law does not applied to this MTA Tax.
You should consult with your accountant or tax advisor for further details or advice specific to your own circumstances.
For more information, visit the website of New York State Department of Taxation and Finance at: http://www.tax.state.ny.us/sbc/mta.htm or click the link below:
http://www.tax.ny.gov/bus/mctmt/default.htm