More Taxes Could Slam New Yorkers Over MTA Budget Shortfall
Lawmakers warn that New Yorkers may need to brace for more taxes.


Taxes in New York may just get worse.
State lawmakers argue that New York City’s congestion pricing won’t be enough to cover the Metropolitan Transportation Authority's (MTA) $33 billion budget deficit, which could mean more taxes and fees could be coming for New Yorkers wallets.
The discussions come barely a week after city commuters were slammed by New York City’s congestion pricing, which is expected to bring in nearly $15 billion in projects for subways and buses in the city. Anyone driving into Manhattan’s Central Business District south of 60th Street must pay a new toll of $9 – the toll structure is expected to increase over six years.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
To say the least, commuters aren’t happy.
Despite the controversial new tax, MTA funding remains billions of dollars in the red. While NY Gov. Kathy Hochul told reporters this week that raising taxes would be a last resort, state lawmakers argue differently.
“You got to get revenue from somewhere,” said NY State Assembly Speaker Carl Heastie.
Here’s what you should know about the MTA’s budget gap and how it may come to impact your tax situation in the Big Apple.
New York’s $33 billion-dollar budget shortfall
New York legislative leaders shot down the MTA’s $65 billion capital plan on Christmas Eve, forcing negotiations to reconvene this month.
State Assembly and Senate leaders cited the rejection of the five-year capital plan for the Metropolitan Transportation Authority was due to a failure to address where revenue funding for $33 billion of the $65 billion would come from.
The concerns come after MTA officials signed off on a new construction plan in September, scheduled to run from 2025 to 2029. The plan, estimated to be worth $33 billion, focuses on repairing and expanding the MTA’s infrastructure. Some changes include:
- Repairing structurally unsound stations
- Address aging elevated tracks and tunnel
- Add 2,000 new subway and commuter railroad train cars
Most critical, would be the construction of a proposed 14-mile Interborough Express light rail line between Brooklyn and Queens. Hochul’s project aims to provide connections to up to 17 subway lines, reducing travel times between the boroughs by 30 minutes to the 40 million riders each year.
Gov. Hochul is expected to announce this year’s budget plans in her State Address on January 14 and has repeatedly pledged not to raise taxes in 2025. However, several state lawmakers aren’t sure the governor can keep that promise.
“It’s not good PR to have another tax proposed on the heels of the new congestion charge, but it’s reality,” NY State Senator Brad Hoylman-Segal told CBS News.
Still, there will be open debate among lawmakers and the governor over MTA’s future funding to sustain these projects.
Congestion pricing also hits New Yorkers
The last thing New Yorkers want to be worried about is more taxes.
As reported by Kiplinger, the city is levying congestion pricing on commuters traveling within Manhattan lower district, south of 60th Street. The nation’s first-of-its-kind congestion tax aims to relieve the gridlock downtown and air pollution in the city.
It’s also meant to encourge the use of the city’s public transit system, and fund around $15 billion of MTA improvements.
As of January 5, commuters are paying a $9 toll for cars and $4.50 for motorcycles. Commercial trucks pay $14.40, while large multi-unit trucks and tour buses will be charged $21.60.
Even app-based services like Ubers and taxis will face a toll while entering the designated congestion zone.
The measure was passed against all odds, as NY’s congestion pricing still faces multiple lawsuits.
Will New York taxes increase in 2025?
As New Yorkers digest the recent addition of congestion pricing, it remains to be seen if they should brace for higher taxes.
It appears that Gov. Hochul is doubling down on her promise to not raise taxes, however the $33 billion MTA funding gap needs to be filled by some revenue stream. For state lawmakers, raising taxes and other fees isn’t off the table.
While the MTA won’t immediately feel the impact of the budget stall, commuters have already complained of deteriorating infrastructure, delays, and public safety. Asking New Yorkers for more taxes would be yet another financial blow.
New York’s budget negotiations are still ongoing, which may include some positives like tripling the Empire Child Tax Credit. So stay informed, the outcome may just impact your wallet or commute.
More on New York Taxes
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Gabriella Cruz-Martínez is a seasoned finance journalist with 8 years of experience covering consumer debt, economic policy, and tax. Before joining Kiplinger as a tax writer, her in-depth reporting and analysis were featured in Yahoo Finance. She contributed to national dialogues on fiscal responsibility, market trends and economic reforms involving family tax credits, housing accessibility, banking regulations, student loan debt, and inflation.
Gabriella’s work has also appeared in Money Magazine, The Hyde Park Herald, and the Journal Gazette & Times-Courier. As a reporter and journalist, she enjoys writing stories that empower people from diverse backgrounds about their finances no matter their stage in life.
-
Market Fees Could Be Costing You — Here’s How to Avoid Them
Some money market accounts charge more than they earn. Here's how to spot costly fees and choose smarter savings options.
-
The Role of a Mortgage Underwriter in Buying a Home
From fast-track approvals to manual reviews, here’s what to expect (and how to avoid delays) in the underwriting process.
-
I’m Over 65 and Itemize: Can I Claim the New $6,000 ‘Senior Bonus’ Tax Deduction?
Tax Changes If you’re an older adult, a new bonus deduction could provide a valuable tax benefit.
-
Another State Rebels Against Trump’s New 2025 Tax Law: What Now?
State Taxes Even if states adopt tax policies in the so-called ‘big beautiful bill,’ lawmakers may have workarounds at their fingertips.
-
Is Trump's Tax Plan Speeding Up the Looming Social Security Funding Crisis?
Social Security Social Security's combined retirement funds are running out of cash, and its insolvency date is expected to occur in less than a decade.
-
Will You Get a ‘Surprise’ Tax Bill on Your Social Security Benefits in Retirement?
Retirement Taxes Social Security benefit payments might land you in hot water when filing 2025 taxes — here are three reasons why.
-
Stay NJ Could Give You $6,500: The Deadline You Can't Miss
Property Taxes New Jersey has a new property tax relief program for 2025. The application deadline is approaching fast.
-
How the 2025 Child Tax Credit Rules Impact Single Parents
Tax Credits New changes to family tax credits, like the Child Tax Credit, will impact the eligibility of some households.
-
The Fall Garden Tax? What to Plant and How to Prepare
Tax Tips Fall gardening could increase your taxes this season. Here’s what to know while planting in 2025.
-
Texas Sales Tax-Free Weekend 2025
Tax Holiday Here's what you needed to know about the Texas sales tax holiday.