Since its implementation on January 5, 2025, New York City’s congestion tax has resulted in a significant decrease in traffic within Manhattan’s busiest areas. The Metropolitan Transportation Authority (MTA) reports that over 1 million fewer vehicles have entered the central business district, leading to improved commuting times across major crossings.
The congestion tax imposes a $9 fee on passenger vehicles during peak hours in Manhattan south of 60th Street, with higher rates for trucks and buses. The fee is reduced by 75% during nighttime hours. This initiative aims to alleviate traffic congestion and generate revenue for public transit enhancements.
According to the MTA, inbound travel times on all Hudson and East River crossings have improved by 10% to 30% or more. Bus services have also seen enhancements, and subway ridership has increased by 7.3% on weekdays and 12% on weekends compared to January 2024.
Despite these positive trends, the program has faced opposition. New Jersey Governor Phil Murphy has requested President Donald Trump to reassess the federal approval of the congestion tax, citing concerns over its impact on New Jersey commuters.
The city anticipates that the congestion tax will generate $500 million in its first year. Governor Kathy Hochul has indicated that these funds will support $15 billion in debt financing for mass transit capital improvements, with 80% allocated to the subway and bus systems and the remaining 20% to commuter rail systems.
