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New York State Modifies the Metropolitan Commuter Transportation Mobility Tax

July 19, 2023

Modifications to the Metropolitan Commuter Transportation Mobility Tax will take effect July 1, 2023. Here's what you need to know.

At A Glance

Overview

The state of New York recently passed budget bill 4008 into law, which modified the Metropolitan Commuter Transportation Mobility Tax effective July 1, 2023. It is still a payroll expense tax that is applicable to certain employers within the state of New York. 

Previously, New York’s Metropolitan Commuter Transportation Mobility Tax included all the covered jurisdictions into one cluster with tiered rates based on the employer’s payroll expense.  The rate breakdown reflected the following below:

Payroll Expense

Tax Rate

Over $312,500 but not over $375,000   

0.11% 

Over $375,000 but not over $437,500   

0.23% 

Over $437,500   

0.34% 

However, effective July 1, 2023, the jurisdictions split into two zones and changed the range of the rates for each zone.

Zone 1 includes the counties of New York (Manhattan), Bronx, Kings (Brooklyn), Queens, and Richmond (Staten Island). Zone 1’s tax rate ranges from 0.11% to 0.60%.

Payroll Expense

Tax Rate

Over $0 but not over $375,000 

0.11%   

Over $375,000 but not over $437,500 

0.23% 

Over $437,500 

0.60%

Zone 2 includes: the counties of Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester. Zone 2’s tax rates range from 0.11% to 0.34%.

Payroll Expense

Tax Rate

Over $0 but not over $375,000 

0.11%   

Over $375,000 but not over $437,500 

0.23% 

Over $437,500 

0.34%

The due dates for filing and payments for this tax remain the same and follow the following below schedule.  More information on this change is available on the agency website here.

Next Steps

Additional resources, and any additional information made available, will be ready for Paylocity clients in the Paylocity Knowledge Base, PEAK.

Thank you for choosing Paylocity as your Payroll Tax and HCM partner. This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.

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