As of Jan. 5, vehicles entering the Central Business District (CBD) of New York City, popularly referred to as the Congestion Relief Zone (CRZ), have been charged a toll. The CRZ includes local streets and avenues at or below 60th Street in Manhattan and excludes trips entirely done on the FDR Drive, West Side Highway/Route 9A and the Hugh L. Carey Tunnel, the southernmost crossing of the East River, connecting Manhattan and Brooklyn.

It is estimated that the tolls will result in at least 80,000 fewer vehicles entering the zone every day, relieving crowding in what is today the most congested district in the U.S.

Tolls depend on several factors: the type of vehicle, time of day, whether any crossing credits apply, and payment method. For example, passenger vehicles with E-ZPass tags entering the CRZ at 60th Street are charged $9 in the peak period and $2.25 overnight, once daily.

The same rate applies to small commercial vehicles (sedans, SUVs, pick-up trucks and small vans) paying with a valid E-ZPass; large trucks pay a higher toll.

A credit reduces Congestion Relief Zone tolls for vehicles using a valid E-ZPass and entering during the peak period via one of the four tolled entries: Lincoln Tunnel, Holland Tunnel, Queens-Midtown Tunnel and Hugh L. Carey Tunnel. The credit amount is up to $3 for passenger vehicles.

A discount plan is available for low-income drivers, and exemption plans are available for individuals with disabilities or organizations transporting people with disabilities, emergency vehicles, buses and specialized government-owned vehicles.

Customers can use their E-ZPass tags to pay the Congestion Relief Zone toll as they do to pay for tolls on other roads, bridges and tunnels. Those without an E-ZPass tag will receive a more expensive “Tolls by Mail” billed to the registered owner of the vehicle. For more formation, see congestionreliefzone.mta.info.

A Google search shows the tolls are expected to generate $500 million annually for three years, before the authority raises rates and revenue projections. Congestion pricing was designed to raise money for the Metropolitan Transit Authority (MTA) capital plan, while reducing traffic in Midtown.

New York City is the first city in the United States to implement congestion pricing, which was first suggested in the 1950s. Singapore was the first nation to introduce congestion pricing on its urban roads in 1975 and was refined in 1998. Since then, it has been implemented in cities including London, Stockholm, Milan, Gothenburg and a handful of smaller urban areas. A 2024 study found that the congestion charges reduced traffic in downtown London, as well as on un-tolled suburban roads leading downtown.

Other large cities in the U.S. will be watching closely to see how congestion pricing in NYC meets the dual goals of reducing congestion on the busiest streets and generation of money to further fund public transportation.

Next week’s article will discuss results from the first few weeks of tolls.