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Department of Taxation and Finance

Congestion surcharge

The Tax Law imposes a surcharge that is added to the charge for transportation that:

  • both begins and ends in New York State, and that
  • begins in, ends in, or passes through the area of New York City in the borough of Manhattan, south of and excluding 96th Street (an area known as the congestion zone).

The surcharge applies to transportation in vehicles that carry people for-hire, including:

The surcharge does not apply to transportation:

  • provided in connection with funerals;
  • provided by a bus;
  • provided by, or pursuant to a contract with, school districts;
  • administered by or on behalf of the Metropolitan Transportation Authority; or
  • by ambulance or ambulette.

NOTE—Taxicab Medallion Owners and their Agents: Agents cannot register or file on behalf of their clients using the agent's Online Services account, even if the agent pays the tax for multiple medallions for the New York City taxicab ride tax . For purposes of the congestion surcharge, each client is required to register and file separately using the client's Business Online Services account. If clients would like their agent to submit a registration or file a return on their behalf, they may add their agent as a user to their Online Services account. For additional information on how to add a user (with specific permissions), see View videos and demos and choose Adding a User to a Business Account in the Account creation and management services section. We may issue assessments to any client who fails to register or file individually.