New York state might have just made things more expensive to buy in New York City, which is bad news for local businesses already feeling the pinch in a tight economy.

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A new congestion pricing toll took effect at midnight on Jan. 5, 2025. It charges commercial drivers entering lower and midtown Manhattan in New York City between $3.60 and $21.60 per trip, depending on the time of day and truck size. Unlike most passenger vehicles, which have a once-daily cap, truck drivers would be disproportionately impacted, as they would have to pay their higher toll rates multiple times a day.

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“Tolling delivery trucks is effectively a tax on all goods purchased in the city,” explained Mothership founder and CEO Aaron Peck, referring to New York City and its new Congestion Relief Zone Toll. “The carriers will pass the cost to businesses, and the businesses will pass it along to retailers in the wholesale price. Then, the retailers will pass their added costs to consumers in the final retail price.”

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And unlike other drivers, truck drivers have few alternatives to avoid New York City’s congestion pricing. Deliveries to lower and midtown Manhattan, the core of New York’s central business district, must continue.

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While freight carriers have already taken steps to drive more efficient routes, reduce wasted miles or idling, and improve their scheduling, they cannot deliver overnight or at off-peak hours because their customers need their freight during their business hours, schedule or at a safe time.

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‍What is congestion pricing?‍

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Congestion pricing is an economic principle that recommends a higher cost or surcharge, such as a toll, tax or other fee, to reduce demand or strain for a good or service during peak-use times.

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Common examples of congestion pricing include varied or tiered time-of-day or seasonal energy rates, like higher costs for natural gas usage in the winter, “peak” fares to use public transportation during commute hours, or fees or tolls to drive into or within a city center or downtown neighborhood.

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NYC congestion pricing: How does it work?‍

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New York City’s congestion pricing is intended to reduce traffic and pollution and better fund public transportation, including the subway. It created a toll to enter local streets and avenues in Manhattan beginning at 60th Street and below. The so-called Congestion Relief Zone Toll varies based on vehicle type driven, time of day and payment method.

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Drivers entering lower and midtown Manhattan during peak hours must pay a toll as high as $9 for personal cars and small vans and $21.60 for some trucks and buses.

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New York’s congestion toll is 50% more expensive if the driver is not enrolled in New York state’s E-ZPass account to pay tolls on roads, bridges and tunnels.

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‍How much is the NYC congestion toll?‍

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New York City’s congestion toll charges drivers with an E-ZPass as much as $9 a day during peak hours and $2.25 at off-peak hours. Peak hours are 5 a.m. to 9 p.m. on weekdays and 9 a.m. to 9 p.m. on weekends.

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Drivers without E-ZPass must pay the toll by mail, which is more pricey: $13.50 for peak hours and $3.30 overnight.

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Peak rates for New York City’s congestion by vehicle type when charged by E-ZPass are:

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• Motorcycles: $4.50
• Sedans, SUVs, pick-up trucks or small vans: $9
• One-unit trucks: $14.40
• Multi-unit trucks and buses: $21.60

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Drivers in passenger and small commercial vehicles or motorcycles pay the toll only once per day. Buses, most trucks, taxis and ride-share vehicles for hire pay the congestion charge every time they enter, even if they make multiple trips on the same day.

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Discounts are available for those driving at off-peak hours (75% off the peak rates) and low-income drivers after paying the toll 10 times in a month (50% off on following trips for the rest of the month).

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People who paid a toll to enter Manhattan at the Holland Tunnel, Hugh L. Carey Tunnel, Lincoln Tunnel or Queens-Midtown Tunnel during peak hours receive a partial credit toward the congestion toll. The so-called crossing credit is up to $1.50 for motorcycles, $3 for passenger vehicles, $7.20 for small trucks and charter buses, and $12 for large trucks and tour buses.

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Are there any exemptions to New York City’s congestion pricing?

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Few vehicles are exempt from New York City’s congestion pricing. Only some emergency vehicles and school buses are exempt. People with disabilities and the people who transport them also do not have to pay the toll.

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New York’s congestion pricing excludes FDR Drive, the West Side Highway and the Hugh L. Carey Tunnel to West Street.

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Rick Chen is the director, communications at Mothership. He was previously the head of communications or company spokesperson for Credit Karma, Gusto, Metromile and Blind and has been featured in accounting, HR, insurance and tech trade publications and national outlets like CNBC, Forbes, Lifehacker, Reuters, Rolling Stone and more.