NY Congestion Surcharge: Filing Rules for Bases & Owners

In short: New York State's congestion surcharge is a per-trip charge on for-hire rides that begin, end or pass through Manhattan south of 96th Street and that begin and end in New York State. It is $2.50 for a yellow taxi trip, $2.75 for other for-hire trips (green cabs, Uber and Lyft, black cars, livery) and $0.75 for a shared (pool) trip. The business that dispatches the trip must collect it from the passenger, file a return and pay it every month, no later than 20 days after the month ends. For yellow taxis and green cabs, the Technology Service Provider (TSP) does this, not the owner. Late payment can bring a penalty of 200% of the surcharge due.

This guide is for bases, app companies, medallion owners and agents. Drivers: the surcharge is never yours to pay — see does the taxi driver pay the congestion surcharge? Facts are from the NYS Tax Department and TLC, checked October 12, 2026. This is not tax advice; ask the Tax Department or a tax professional about your own filing.

Rates and the zone

The law made the surcharge effective January 1, 2019 (TSB-M-18(1)CS); because of a court order, collection actually began at 12:01 a.m. on February 2, 2019 (Notice N-19-2). It must be passed through to passengers and shown separately on any receipt (NYS Tax Department). It is a different charge from the MTA's Congestion Relief Zone toll, which covers Manhattan at or below 60th Street and is $0.75 per taxi or FHV trip and $1.50 per app trip under the MTA's per-trip plan. That plan is explained in the Per-Trip Charge Plan and the driver view in congestion pricing for TLC drivers.

Trips that don't pay it

The Tax Department lists five exemptions. The surcharge does not apply to transportation provided:

• in connection with funerals;
• by certain buses;
• by, or under a contract with, school districts;
• by, or on behalf of, the Metropolitan Transportation Authority (for example, Access-A-Ride trips — TLC's page says "no surcharge for Access-A-Ride, or any other MTA dispatched trip");
• by ambulance or ambulette.

A trip that leaves New York State, such as a trip to Newark Airport, does not meet the "begins and ends in New York State" test.

Who is responsible

How TSP withholding works for taxis

The Tax Department explains the order of steps:

1. The TSP withholds the surcharge due to New York State before it distributes card money to the owner or agent.
2. If one day's fares are not enough to cover it in full, the TSP withholds the rest from the next day's fares, and keeps doing so until it is paid.
3. If after 12 months the TSP still can't withhold the full amount, the owner or agent becomes responsible for what is left.

This is why cash-heavy medallions can still owe: the surcharge on cash trips is taken from later card fares. None of it can be shifted to the lease driver. TLC's Congestion Surcharge page says the surcharge "cannot be taken out of the driver's pay, and must be passed on to the passenger(s)". Under TLC Rule 58-21(f), the only deductions allowed from a lease driver's card money are the improvement surcharge, the MTA tax and TSP amounts allowed by TLC rule.

A similar TSP system already runs for the $1.00 Taxicab Improvement Surcharge: TSPs remit it to the Taxicab Improvement Fund, and the medallion owner must pay any amount the TSP did not collect. Failing to pay is a $1,000 fine with suspension until compliance (TLC Rule 58-16(f)).

Filing a return, step by step

Agents of medallion owners: an agent cannot file for clients from the agent's own Online Services account, even if it pays for many medallions under the NYC taxicab ride tax. Each client must file from its own Business Online Services account, and can add the agent as a user there. The Tax Department says it may issue assessments to clients that fail to file individually.

The monthly cycle

Records you must keep

Records matter twice: they are how you fill in each monthly return, and they are what the Tax Department will ask for if it audits you. If you never filed a return for a period, the Department says you must still keep the records from earlier periods.

The Tax Department's list for all trips subject to the surcharge:

• where, when and at what time each trip began and ended, and the route;
• for for-hire vehicles, the date, time and place the vehicle entered or left the zone;
• for pool trips, where and when each separately-requesting rider or group got in and out;
• vehicle details: plate number and state, or the number a regulator assigned;
• all amounts charged and collected: fare, taxes and surcharges.

The Department says you can meet this using equipment that a regulator already requires in for-hire vehicles, if it can collect, store and transmit all the required records.

Mistakes to avoid

• Treating it as the MTA toll. The state surcharge (south of 96th St) and the MTA congestion toll (at or below 60th St) are two charges, filed with two agencies.
• Charging drivers. Deducting the surcharge from driver pay breaks TLC's rule; for app and base drivers, also check how fast pay must arrive: how fast must my base pay me?
• Missing a zero month. The old memo required registered filers to file even with no trips. The registration rule has since ended; check the current Tax Department page for what applies to you.
• Agents filing in bulk. Each medallion owner client files from its own account.

For definitions, see congestion surcharge in the glossary. Bases with wheelchair-accessible trip obligations should also see the base WAV trip mandate. More on the money hub.