New York introduces congestion tax, inspired by Stockholm

After Stockholm, London, and Singapore – now congestion tax is also introduced in New York. The initiative is, among other things, intended to provide a multi-billion kronor boost to the city's neglected public transportation.

» Published: January 05 2025

New York introduces congestion tax, inspired by Stockholm
Photo: Bebeto Matthews/AP/TT

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With the start today, Sunday, drivers who need to get into Manhattan during rush hour will have to pay nine dollars, equivalent to approximately 100 Swedish kronor.

Various forms of tolls have existed previously in New York and other states, but the decision on congestion tax is the first ever in the USA. It is now intended to bring in around 15 billion dollars to the Metropolitan Transportation Authority (MTA), which operates public transportation in the state of New York.

We have studied this for five years. It only takes five minutes in central Manhattan to see that New York has serious traffic problems, says MTA's CEO Janno Lieber.

The decision by Governor Kathy Hochul has still sparked strong criticism, and from the Republican side, people have, among other things, urged the incoming President Donald Trump, originally from New York, to try to stop the fee. Trump, whose famous building Trump Tower is located within the zone, has previously also questioned the proposal and claimed that various companies will leave the city, and that the congestion tax gives a disadvantage to New York in competition with other cities.

Representatives from areas outside Manhattan, such as New Jersey, have simultaneously argued that the tolls will harm their businesses as well as the possibility for people to commute to work.

A range of exemptions and discounts exist in the new system, for example, for drivers who need to drive into Manhattan more than ten times a month.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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