What You Need to Know About NYC's New Congestion Pricing Program

New York City is rolling out a first-of-its-kind congestion pricing program to curb traffic and improve air quality in Manhattan. The Central Business District Tolling Program (CBD Tolling) will charge vehicles entering Manhattan below 60th Street, aiming to cut down on gridlock, make streets safer, and generate funding for public transit improvements.

The program stems from the 2019 Traffic Mobility Act, which recognized the urgent need to ease congestion in one of the busiest urban centers in the U.S. Inspired by similar systems in London and Stockholm, NYC’s plan adapts the concept to fit the city’s unique challenges.

This initiative marks a major shift in how New York approaches transportation — one that could serve as a model for cities nationwide.

How NYC's Congestion Pricing Aims to Transform the City?

The Central Business District Tolling Program is set to bring major improvements to Manhattan and its surrounding areas. Its key goals include:

1. Cutting Traffic by 17% – by limiting vehicle access, the plan aims to ease congestion and improve travel times.
Smoother Traffic Flow – A projected 9% drop in miles driven means fewer delays and a more efficient commute.

2. Cleaner Air, Quieter Streets – with fewer cars on the road, air quality will improve, and noise pollution will decrease — making the city more livable for residents and visitors alike.

3. $15 Billion for Public Transit – revenue from tolls will fund crucial upgrades to subways, buses, and infrastructure, making public transit more reliable and accessible.

These changes are expected to make Manhattan cleaner, more efficient, and an even better place to live and work.

Toll Structure: How NYC’s Congestion Pricing Works?

The Central Business District Tolling Program uses a straightforward fee system to reduce congestion and fund public transit improvements. Here’s how the toll structure is organized:

Base Rates:

Passenger Vehicles – $9 per entry for sedans, SUVs, and small vans, whether privately owned or for business use.

Motorcycles – $7.50 per entry, reflecting their smaller size and lower traffic impact.

Small Trucks (e.g., delivery vans) – $14.40 per entry.

Large Trucks (articulated vehicles) – $21.60 per entry due to their greater contribution to congestion and emissions.

These rates are designed to keep Manhattan’s streets moving while generating much-needed funding for public transit upgrades.

To keep traffic flowing, the Central Business District Tolling Program adjusts rates based on time of day:

Time-Based Rates

Daytime Rates – apply from 5 a.m. to 9 p.m. on weekdays and 9 a.m. to 9 p.m. on weekends, covering peak traffic hours.

Nighttime Discounts – from 9 p.m. to 5 a.m., tolls drop by 75% to encourage off-peak travel and ease congestion during the busiest hours.

Payment Rules

Entry-Based Charges – drivers are charged only when entering the congestion zone, not for staying or exiting. This keeps the system simple and ensures tolls directly address traffic impact.

Daily Cap – passenger vehicles pay once per day, even if they re-enter the zone multiple times.

This tiered pricing system is designed to reduce congestion, improve fairness, and encourage smarter travel choices — like carpooling, public transit, or off-peak trips.

Discounts & Exemptions: Making NYC’s Congestion Pricing Fair

The Central Business District Tolling Program includes discounts and exemptions to ensure fairness, particularly for those who rely on their vehicles for essential reasons or face financial hardships.

Tunnel Toll Credits

Drivers who already pay tolls at certain tunnels can receive a credit to offset additional costs:

Passenger Vehicles – $5 credit for those using the Lincoln, Holland, Hugh L. Carey, and Queens-Midtown tunnels.

Motorcycles – $2.50 credit under the same conditions.

This prevents drivers from rerouting to avoid double tolls and distributes costs more fairly.

Low-Income Driver Discounts

For drivers with limited financial means:

1. 50% discount after 10 trips into the congestion zone within a single month.

2. To qualify, drivers must register with the tolling authority and verify household income.

Toll Exemptions

Certain vehicles are fully exempt to support essential services and accessibility:

Public Transit & Charter Buses – exempt to encourage mass transportation.

Emergency Vehicles – includes police cars, ambulances, and fire trucks.

Vehicles for People with Disabilities – those with official disability plates or operated by organizations serving disabled individuals.

These measures ensure the program reduces congestion without placing an undue burden on those who need their vehicles most.

How NYC’s Congestion Pricing Will Impact Drivers and the City

NYC’s congestion pricing program shifts the cost from drivers to passengers using taxis and rideshares. Taxi fares will include a $1.25 surcharge, while Uber and Lyft trips will add $2.50, ensuring the burden falls on those choosing the service rather than the drivers themselves.

For residents living within the toll zone, those earning under $60,000 per year qualify for a state tax credit to help offset costs while keeping the program’s goals intact.

Beyond reducing traffic, the plan brings real benefits to the city. Fewer cars mean cleaner air, safer streets, and lower emissions, improving public health. The revenue funds major public transit upgrades, from electric buses to better subway accessibility and modernized infrastructure, making the system more efficient and reliable for millions of New Yorkers.

A Step Toward a Cleaner, Smarter New York

The Central Business District Tolling Program is a transformative initiative aimed at reducing congestion, improving air quality, and funding essential upgrades to New York’s public transit system. By tackling these challenges head-on, the program paves the way for a healthier and more efficient urban environment.

As the first program of its kind in the United States, it sets a precedent for other cities, demonstrating how innovative solutions can address longstanding issues. With continuous monitoring and adjustments, the program is designed to evolve and ensure long-term success. New York is leading the way in reimagining urban mobility for the future.

Now you know how NYC’s Congestion Pricing works — time for an adventure! With the new toll system in place, planning your trip is key. Whether you're driving into Manhattan or exploring beyond the congestion zone, renting a car gives you the flexibility to travel on your terms. Choose the perfect ride and enjoy a smooth journey! Rent a car now!