New York City will start collecting a congestion fee of $9 per trip from January 5 next year, with the Metropolitan Transportation Authority (MTA) board approving the plan in a 12-1 vote on Monday (November 18), confirming that the fee will be collected in three phases, returning to the originally planned $15 by 2031.
According to documents released by the MTA, vehicles of all kinds entering south of 60th Street in Manhattan from 2025 to 2027 will receive a 40% discount on the congestion fee. From 2028 to 2030, the fee will be discounted by 20%. Starting in 2031, the congestion fee will return to the original rate.
For private cars, the congestion fee will be $9 from January 5 next year to 2027, $12 from 2028 to 2030, and $15 from 2031 onwards. However, if private vehicles successfully register for the “low-income discount program,” the congestion fee during peak hours will be half price starting from the 11th trip of the month entering south of 60th Street in Manhattan.
In addition to cars, single-frame/multi-frame trucks, buses, licensed sightseeing buses, and motorcycle riders will see increasing congestion fees over time, impacting those who prefer taking taxis and for-hire vehicles (FHVs).
Registered taxis, green cars, and FHVs under the New York City Taxi and Limousine Commission (TLC) can pass on the congestion fees of $0.75/$1.5 per trip (large capacity FHVs) to passengers from next year to 2027. From 2028 to 2030, the congestion fee will be $1/$2, increasing to $1.25/$2.5 by 2031.
After the board’s approval on Monday, the three-phase congestion fee system will be implemented starting from January 5, 2025 – two weeks before Trump’s inauguration at the White House on January 20.
New York Governor Kathy Hochul temporarily stopped the congestion fee in early June this year, citing consideration for the public. However, two weeks after Trump’s election as president, Hochul announced on November 14 to resume the congestion fee at $9 instead of the originally planned $15.
According to the MTA documents, the board’s approval of the three-phase fee rates on Monday simply “resumes” the congestion fee plan proposed by Hochul’s team on March 27 this year.
Despite facing legal challenges from New York City and New Jersey, as well as opposition from Trump, the New York State Assembly passed legislation in 2019 requiring MTA to implement the congestion fee, with 80% of the revenue going towards capital projects and railway construction.
MTA recently indicated that the delayed implementation of the congestion fee has led to delays in subway elevator projects. On the other hand, critics opposing the congestion fee, including lawmakers and grassroots organizations, have criticized MTA for mismanagement, calling the entire system a money pit and warning that the fee will increase living costs for the public.
The implementation of the congestion fee on January 5, 2025, will have significant implications for MTA operations, New York City traffic, public life and commerce, as well as the city/state-level political landscape by the end of next year, drawing attention from various sectors.
Based on the MTA’s published congestion fee phase rates, the fee schedule for cars, trucks, buses, motorcycles, and taxis is as follows:
1. Congestion fee pricing for cars and other vehicles from 2025 to 2031.