Congestion charge: what is it and is it coming to your city?

It’s the first time a major US city has introduced a congestion charge, bringing with it many questions about how it will work and whether the policy will be adopted by more places.

Congestion pricing for traffic has notably been introduced in various overseas cities, particularly in Europe, but the policy has struggled to catch on in the US. From the beginning of 2025 however, the system is already in place in the nation’s most populous metropolitan area, New York. The aim is to reduce congestion in certain areas, reduce carbon emissions created by heavier traffic and help generate more tax revenue, all by charging vehicles that enter certain areas.

For a city as densely populated and heavily trafficked as New York, this policy is poised to have a significant impact on city residents, commuters and visitors. Approximately 900,000 vehicles enter Manhattan Island each day, Reuters reportswith about 700,000 entering the area designated as a congestion zone.

Read on for all the details you need to know about this new congestion policy and to see if your city is among those considering one. For more see if you are entitled to child tax credit and find out about a new ban on plastic bags in another part of the country.

What is a congestion charge?

Congestion pricing is a category of economic policies that impose an additional charge on the public for the use of a particular good or service in order to alleviate the burden of heavier use. In this case, it’s to use urban roads designed to help reduce the carbon emissions that are created en masse in the metro and generate revenue for things like mass transit services.

The first such system debuted in Singapore in 1975. and in the years since, congestion pricing has been introduced in Gothenburg, Milan, London and Stockholm, in addition to several smaller urban areas.

Where is the congestion zone in New York?

New York’s new “congestion relief zone” is located in Manhattan and covers almost all streets south of Central Park or everything on or below 60th Street. There are a few exceptions in this area, as no tolls will be collected for anyone using the FDR Drive, the West Side Highway, or the roads leading to the Hugh L. Carey Tunnel.

Local traffic within the Congestion Relief Zone will also be exempt from the toll as long as no car leaves it at any point during the day. However, exiting and re-entering will incur a charge.

How much is the congestion charge in New York?

The cost of the toll varies depending on a number of factors, including time of day, type of vehicle, and whether or not the vehicle has an EZ Pass tag. Prices are higher during peak traffic hours, from 5am to 9pm, while larger vehicles are also charged more. Motorcycles have the lowest toll during peak hours at $4.50, followed by standard passenger vehicles at $9. Small trucks, large trucks and buses are charged between $14.40 and $21.60, depending on their size and function.

Vehicles without an EZ Pass tag are charged 50% more than vehicles with one. Prices are 75% off overnight. Congestion charges are only collected once a day for each individual vehicle, although some types of trucks are charged several times a day.

A full breakdown of prices can be found at New York City Government website.

How will this congestion charge be collected?

Vehicles with valid EZ Pass tags are billed through their accounts in the same manner as other tolls are collected. Any vehicle without one of these tags is billed by mail.

Are there vehicles exempt from congestion charge?

There are various exceptions to congestion pricing in New York. Some people with disabilities or conditions that prevent them from using public transport can get an exemption. Authorized emergency vehicles, school buses and vans are also among the types of vehicles exempt from the fee.

There are also several programs to help low-income residents cope with the new costs. For some, a program is available offering a 50% discount on tolls after the first 10 journeys in a given year. A tax credit for the total value spent on tolls is also available to some people who make less than $60,000 a year. More information about these offers can be found at The website of the Metropolitan Transport Administration.

Are other US cities considering a congestion charge?

Similar systems are being considered in San Francisco and Washington, DC. Speaking to NPR in April, Sam Schwartz, a former New York City traffic commissioner, said the success or failure of New York’s new system will likely dictate whether other metro areas move forward with their own versions. He specifically named cities like San Francisco, Boston, Chicago, Los Angeles and Vancouver as places that are “on the edge of offering congestion pricing.”

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