Chicago Expands Rideshare Congestion Zone, Raising Per-Trip Fees

Chicago expanded its rideshare congestion zone in 2026, adding a $1.50 per ride surcharge across much of the North Side and Hyde Park. Here is what rideshare drivers need to know.

Chicago has expanded its rideshare congestion surcharge, increasing costs for trips that start or end across much of the North Side and Hyde Park.

As of Tuesday, riders picked up or dropped off within the expanded congestion zones are charged an additional $1.50 per ride, on top of the city’s existing $1.13 flat rideshare tax. The newly covered area generally stretches from Foster Avenue to 31st Street to Western Avenue, along with a second zone that includes Hyde Park.

For shared rides, the congestion fee remains 60 cents per trip on weekdays, applied within the same expanded boundaries.

The city did not change its separate $5 rideshare tax for trips to or from Chicago’s airports, Navy Pier, or McCormick Place.

Why the Zone Was Expanded

The congestion surcharge changes were approved as part of Chicago’s 2026 budget. The city first introduced the congestion zone in 2020, originally limited to the Loop, as a way to reduce traffic and raise transportation revenue.

The surcharge applies daily from 6 a.m. to 10 p.m. for personal rideshare trips. While it originally applied only on weekdays, the city expanded it to seven days a week in January 2025 to help close a budget shortfall.

Past Issues With Congestion Fees

Last summer, Uber refunded nearly $1.8 million after riders were incorrectly charged congestion fees outside the designated hours. Uber said the overcharges resulted from a “technical misstep” during a system update in December 2024. The issue prompted an investigation by the city’s Department of Business Affairs and Consumer Protection.

Political Pushback and Budget Compromise

Some city officials raised concerns about how the surcharge affects workers who rely on rideshare services, particularly those commuting during off-hours. Ald. Brendan Reilly (42nd) had previously questioned the $1.50 downtown surcharge, citing its impact on hospitality workers.

Ultimately, Reilly joined a group of moderate City Council members who supported an alternative revenue package in December. That package included the expanded rideshare congestion taxes and removed Mayor Brandon Johnson’s proposed corporate head tax from the final budget.

Source: Chicago Sun Times