Driver questionPay, fees & earnings rules

Does the Taxi Driver Pay the Congestion Surcharge?

No. Passengers pay the $2.50 NYS congestion surcharge and 75-cent MTA toll, and TLC says the surcharge can't come out of driver pay. How to check your payout.

  • Reviewed
  • 2 min read
  • 5 official sources
On this page (6)
  1. What TLC and the state say
  2. The MTA toll goes through the TSP too
  3. Check your card payouts
  4. Related rules and exceptions
  5. FAQ
  6. Sources

Short answer: No. Both congestion charges on a taxi trip are paid by the passenger, not the driver. The NYS congestion surcharge ($2.50 on a yellow taxi trip, $2.75 on a green cab, $0.75 on a shared ride) is withheld by the taxi's Technology Service Provider (TSP) and sent to New York State. TLC says it "cannot be taken out of the driver's pay, and must be passed on to the passenger(s)". The 75-cent MTA congestion toll is also collected from passengers and sent to the MTA. Neither is yours to keep, and neither may be deducted from your earnings.

Sources: TLC Congestion Surcharge, NYS Tax Department and MTA taxi and FHV tolls, checked October 12, 2026. This is general information, not legal or tax advice.

Where the two congestion charges go on a card-paid taxi trip

  1. Passenger pays

    $2.50 NYS surcharge (trip begins, ends or passes through Manhattan south of 96th St) and $0.75 MTA toll (Manhattan at or below 60th St) are added to the fare.

  2. TSP withholds

    The Technology Service Provider takes the state surcharge out before paying the owner, and handles the MTA charge for cabs it enrolled in the Per-Trip Charge Plan.

  3. State and MTA

    The TSP files and pays New York State monthly. The MTA charge is remitted to the MTA.

  4. Good to know: Your payout

    Meter fare, rush/overnight/LGA surcharges and tips. No congestion deduction.

What TLC and the state say

  • TLC: the surcharge "cannot be taken out of the driver's pay". Medallion owners and FHV bases must file what they collect with the state each month.
  • NYS Tax Department: for medallion taxis and green cabs, the TSP is responsible for "withholding and remitting the congestion surcharge and filing returns", and withholds it "prior to distributing funds to the owners or agents". If one day's fares aren't enough, it takes the rest from the next day's; after 12 months, the owner or agent owes what is left. The amount "must be passed through to passengers and reported separately on any receipt".
  • TLC Rule 58-21(f): an owner may deduct from your card money only the improvement surcharge, the MTA tax (if the owner is the taxpayer) and TSP amounts allowed by TLC rule.

The MTA toll goes through the TSP too

The MTA's Congestion Relief Zone toll started January 5, 2025. For taxis, TSPs that "provide payment technology within the vehicle" enroll the cabs in the MTA's Per-Trip Charge Plan. Enrolled vehicles pay $0.75 per trip in the zone, collected from passengers, instead of the standard daily toll (the MTA lists $9). Uber and Lyft trips pay $1.50 per trip under the same plan. The full driver guide is congestion pricing for TLC drivers; what happens when you enter the zone with no passenger is answered in do I pay congestion pricing driving empty?

Check your card payouts

Is the congestion money handled right?

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If something looks wrong, ask the owner in writing which rule allows the deduction, then contact TLC's Driver Protection Unit at 718-391-5539 or driverprotection@tlc.nyc.gov.

Frequently asked questions

Is the $2.50 congestion surcharge taken from my pay?

It must not be. TLC says the NYS congestion surcharge 'cannot be taken out of the driver's pay, and must be passed on to the passenger(s)'. On taxis, the TSP withholds it from the passenger's payment and sends it to New York State.

Who pays the 75-cent MTA congestion toll in a taxi?

The passenger. Under the MTA's Per-Trip Charge Plan, taxi technology providers enroll the cabs and the charge is collected from passengers on each zone trip and remitted to the MTA, instead of the vehicle paying the daily $9 toll.

What if a cash passenger paid the surcharge to me?

The state says the TSP withholds the surcharge from the fares it handles, taking any shortfall from the next days' fares, and after 12 months the owner or agent owes what is left. TLC rules don't spell out how cash collected for the surcharge is settled between driver and owner. If your owner asks you to pay it, ask the TLC Driver Protection Unit.

Do I pay congestion pricing when I drive empty into the zone?

The MTA says vehicles enrolled in the Per-Trip Charge Plan, and in good standing, are not subject to the standard toll when they enter the zone; the per-trip charge is collected only on passenger trips to, from, within or through the zone. Taxis are enrolled through their TSP. More detail is on our page about driving empty.

Sources

Last reviewed against the official sources on .

  1. TLC: Congestion Surcharge nyc.gov
  2. NYS Tax Department: Congestion surcharge tax.ny.gov
  3. MTA: Congestion Relief Zone tolls for taxis and FHVs mta.info
  4. TLC Rule Book, Chapter 58 (§58-21(f)) nyc.gov
  5. TLC: Taxi Fare nyc.gov

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