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New York State Modifies the Metropolitan Commuter Transportation Mobility Tax
July 19, 2023
At A Glance
- Effective July 1, 2023, the Metropolitan Commuter Transportation Mobility Tax is split into two zones.
- Each zone has its own tiered tax rate applicable to employers based on their payroll expense brackets.
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 paying for this tax remain the same. More information on this change is available on the agency website here.
For more information on New York wage and payroll tax laws, check out our New York Wage and Payroll Tax Facts page.
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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