It’s been a year since NYC became the first city in America to charge drivers for entering its busiest streets. Here’s what’s working, what’s not, and how to navigate the system without going broke.
As of January 5, 2025, driving into Manhattan below 60th Street costs money—$9 during the day if you have E-ZPass, more if you don’t. The goal: reduce traffic, improve air quality, and fund desperately needed transit improvements.
After one year, traffic is down, air is cleaner, and the MTA has billions for projects like Second Avenue Subway Phase 2. But commuters from the outer boroughs and New Jersey are furious, small businesses worry about delivery costs, and there are still at least ten lawsuits trying to kill the program.
Whether you love it or hate it, congestion pricing is here. Here’s how to make it work for you.
The Basics: Where, When, and How Much
The Congestion Relief Zone
The tolling zone covers all Manhattan streets south of and including 60th Street—except the FDR Drive and West Side Highway/Route 9A. If you stay on those highways without exiting into the street grid, you won’t be charged.
Key boundaries:
- North: 60th Street (included in the zone)
- East: FDR Drive (excluded)
- West: West Side Highway/Route 9A (excluded)
- South: Battery Park
The Costs (2026 Rates)
Passenger vehicles (cars, SUVs, pick-ups, small vans):
- Peak period (weekdays 5am-9pm, weekends 9am-9pm): $9 with E-ZPass
- Overnight (weekdays 9pm-5am, weekends 9pm-9am): $2.25 with E-ZPass
- Without E-ZPass: Higher (billed via “Tolls by Mail”)
Motorcycles:
- Peak: $4.50
- Overnight: $1.05
Small trucks/some buses:
- Peak: $14.40
- Overnight: $3.60
Large trucks/tour buses:
- Peak: $21.60
- Overnight: $5.40
Taxis and for-hire vehicles: Instead of paying the daily toll, passengers pay a per-trip surcharge:
- Yellow cabs, green cabs, black cars: $0.75 per trip
- Uber/Lyft/Via (high-volume for-hire): $1.50 per trip
Important: You’re only charged once per day. If you enter during the peak period at $9, you can leave and re-enter multiple times that day without additional charges. If you enter overnight at $2.25, that rate holds even if you stay into peak hours.
The Phased Approach
These aren’t the final rates. The MTA is phasing in increases:
- 2025-2027: $9 peak toll
- 2028-2030: $12 peak toll
- 2031+: $15 peak toll
Governor Hochul has said rates won’t increase for “at least three years,” but nothing’s guaranteed—especially if she faces pressure from suburban voters.
How to Save Money: Discounts and Exemptions
The program includes several ways to reduce or avoid the toll entirely:
Crossing Credits
If you already pay a toll to enter Manhattan via Lincoln Tunnel, Holland Tunnel, Queens-Midtown Tunnel, or Hugh L. Carey Tunnel during peak hours, you get a credit:
- Passenger vehicles: Up to $3 credit
- Motorcycles: Up to $1.50 credit
- Small trucks/charter buses: Up to $7.20 credit
- Large trucks/tour buses: Up to $12 credit
This means if you pay $17 at the Lincoln Tunnel and get a $3 credit, your total cost is $17 + $6 = $23 (not $17 + $9).
No crossing credits during overnight period when the toll is already 75% lower.
Low-Income Discount (50% Off)
If your household income is $50,000 or less (federally adjusted gross income), you qualify for a 50% discount after your first 10 trips each month.
Example: First 10 trips = $9 each. Trips 11+ = $4.50 each.
Apply here. You’ll need to submit income documentation annually.
Resident Tax Credit
If you live inside the Congestion Relief Zone and your New York State adjusted gross income is under $60,000, you can claim a tax credit equal to the tolls you paid when you file your state taxes.
This doesn’t waive the toll—you still pay it—but you get it back at tax time.
Disability Exemptions
Individual Disability Exemption Plan (IDEP): If you have a disability or health condition that prevents you from using public transit, you can apply for a full exemption. The exemption can apply to your own vehicle or one registered to a family member/caregiver who drives you.
Organizational Disability Exemption Plan (ODEP): For organizations that transport people with disabilities (Access-A-Ride, ambulette services, special education facilities).
Full Exemptions
These vehicles don’t pay at all:
- Emergency vehicles (ambulances, fire, police)
- School buses contracted with NYC DOE
- Commuter buses (licensed, scheduled service open to public)
- Specialized government vehicles (garbage trucks, snowplows, etc.)
How It Actually Works (The Technology)
Cameras and sensors at all entry points into the zone detect your license plate. If you have E-ZPass, it’s automatically charged. If not, you get a “Tolls by Mail” bill sent to the registered owner of the vehicle.
Pro tip: Get E-ZPass. Tolls by Mail costs more and is a hassle. If you don’t have one, sign up online. It works at all NY/NJ/CT/PA/MA tolls, not just congestion pricing.
Make sure your current license plate is linked to your E-ZPass account. Rental cars and borrowed vehicles will still trigger a toll—either to the owner’s E-ZPass or via Tolls by Mail.
What’s Changed After One Year
As of January 2026, the data shows congestion pricing is working—at least by some measures:
The Good News
- Traffic is down: Fewer vehicles entering the zone, faster commute times
- Air quality improved: Reduced particulate matter and nitrogen oxide emissions
- Transit ridership up: More people taking subways and buses
- Billions for infrastructure: Over $6 billion in MTA projects now funded, including Second Avenue Subway Phase 2, ADA upgrades at nine stations, new signals for A/C lines serving 600,000 riders
- Economic activity strong: Office leasing up 9.2% in Q3 2025, NYC first major city to exceed pre-pandemic office traffic, one percentage point fewer vacant storefronts in the zone
The Complaints
- Outer borough residents furious: “I have to drive to work, there’s no other option, and now it costs me $180/month”
- Jersey drivers livid: Already paying tunnel tolls, now an additional charge feels like double-taxing
- Small businesses worried: Delivery costs rising, some vendors passing costs to customers
- Parking chaos in Upper Manhattan: Drivers parking at 61st Street and walking or taking subway downtown
- Still at least 10 active lawsuits: Including challenges from New Jersey, Nassau County, and disability advocates
What’s Being Done
The MTA committed $125 million in mitigation efforts, all now in progress:
- Expanded Clean Trucks Program (replacing diesel trucks with electric)
- Off-Hours Delivery Program (incentivizing deliveries outside peak traffic)
- Truck Refrigeration Unit replacements at Hunts Point Market
- Enhanced bus service to areas with limited transit access
Strategies to Avoid or Reduce the Toll
1. Change your commute time
If you can shift to overnight hours (weekdays 9pm-5am, weekends 9pm-9am), the toll drops from $9 to $2.25. That’s $1,470 saved annually for a daily commuter.
2. Use alternate routes
Stay on FDR or West Side Highway if your destination allows it. You’re only charged when you exit into the street grid.
3. Park outside the zone
Park at 61st Street or higher and take the subway downtown. Monthly garage parking at 65th Street might be cheaper than daily congestion tolls plus parking inside the zone.
4. Carpool
Split the $9 toll among 3-4 people and it’s $2.25-3 each. Still expensive, but better than solo.
5. Switch to transit
MetroCard unlimited monthly: $132. Congestion toll for 22 work days: $198. Plus parking. Plus gas. The math speaks for itself.
6. Work from home more often
If you’re hybrid, schedule your in-office days to minimize trips into the zone. Two days in-office = $18/week vs. five days = $45/week.
7. Apply for low-income discount or exemption
If you qualify, use it. No shame in reducing your costs legally.
For Ride-Share Users
Your Uber/Lyft fare automatically includes the $1.50 surcharge for trips to/from/within the zone. You can’t opt out.
However, Lyft is offering a promotional credit through January 2026: $1.50 credit toward a future Lyft or Citi Bike ride for eligible trips. Check the app for details.
Yellow cabs and green cabs charge $0.75 per trip instead of $1.50, making them slightly cheaper if you’re price-conscious.
The Long-Term Outlook
Congestion pricing isn’t going anywhere. Despite the lawsuits and political pushback, the program has federal approval, generates critical revenue, and shows measurable results.
What might change:
- Exemption expansion if political pressure mounts
- Rate adjustments based on traffic patterns
- Extension of the zone (though not currently planned)
- Changes to for-hire vehicle surcharges if ridership drops significantly
The 2026 gubernatorial election will be a referendum on congestion pricing. If Hochul faces serious opposition from suburban and outer-borough voters, she may freeze rates or expand exemptions. If she wins comfortably, expect the planned increases to $12 (2028) and $15 (2031) to proceed.
The Political Reality
Here’s the honest take: Congestion pricing benefits Manhattan residents, transit-dependent New Yorkers, and people who care about climate policy. It hurts car-dependent outer-borough residents, suburban commuters, and delivery-dependent small businesses.
Whether you think it’s good policy or regressive taxation depends largely on whether you own a car and where you live.
What’s not debatable: Traffic is down, air is cleaner, and the MTA finally has funding for long-overdue improvements. Also not debatable: It’s expensive for people who have no practical alternative to driving.
If you drive into Manhattan regularly:
- Get E-ZPass immediately if you don’t have one
- Check if you qualify for low-income discount or disability exemption
- Consider shifting commute times to overnight if possible
- Run the math on whether monthly transit passes are cheaper
- Factor congestion costs into job/housing decisions going forward
If you take transit, ride-share, or live car-free: Congestion pricing makes your life better through reduced traffic, cleaner air, and improved subway/bus service funded by the tolls.
If you’re a small business owner: Budget for increased delivery costs and consider off-hours delivery programs to save money.
Love it or hate it, congestion pricing is the new reality of getting around NYC. The sooner you adapt your routine, the less it’ll cost you.
Additional Resources
MTA Congestion Relief Zone Official Site
Apply for Discounts and Exemptions
