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Transit & Streets Reviewed 2026-08-22

How TLC's minimum pay for Uber and Lyft drivers works

TLC sets a minimum per-trip payment for drivers of Uber and Lyft, New York's only high-volume for-hire services, built from a per-mile rate and a per-minute rate, each divided by a fixed utilization rate, 68.5% for the mileage rate and 53.3% for the time rate. As of March 1, 2026 that works out to $1.283 a mile and $0.681 a minute for a standard vehicle, figures the TLC adjusts every year by the change in the Consumer Price Index, a 3.36% increase this year.

The numbers that matter

The per-mile formula
$0.850 per mile for a standard vehicle ($1.061 for an accessible vehicle), divided by the mileage utilization rate (Rules of the City of New York, Title 35, § 59D-22(a)(1), read August 2026)
The per-minute formula
$0.287 per minute, divided by the time utilization rate, in effect since January 1, 2019 (Rules of the City of New York, Title 35, § 59D-22(a)(2), read August 2026)
The applied utilization rate
53.3% applied to the per-minute rate, 68.5% applied to the per-mile rate, for every high-volume for-hire service (Rules of the City of New York, Title 35, § 59D-22(b), read August 2026)
The pay floor today
$1.283 per mile and $0.681 per minute for a standard vehicle, $1.601 per mile for an accessible vehicle, effective March 1, 2026 (TLC Driver Pay Rates page, read August 2026)
How it is adjusted
Every year beginning March 1, 2024, by the change in the Consumer Price Index for Urban Wage Earners and Clerical Workers; a 3.36% increase took effect March 1, 2026 (TLC Industry Notice #26-03, February 24, 2026, read August 2026)
The penalty for underpaying
$500 per instance, plus restitution to the driver equal to the amount not paid (Rules of the City of New York, Title 35, § 59D-22(a), read August 2026)

The formula behind the number

A high-volume for-hire service, TLC's term for Uber and Lyft, cannot simply pay a driver whatever the app calculates. The floor is set in the Commission's own rules, and it runs on two rates, one for distance and one for time:

Per Mile Rate. For each mile a Driver transports a Passenger in the City on a trip dispatched by the High-Volume For-Hire Service, the High-Volume For-Hire Service must pay the Driver no less than $0.850 per mile for a trip dispatched to a Vehicle that is not an Accessible Vehicle and $1.061 for a trip dispatched to an Accessible Vehicle, divided by the High-Volume For-Hire Service's Utilization Rate, and for trips that begin in the City but end outside of the City, the Base must pay the Driver no less than $1.700 per mile for a trip dispatched to a vehicle that is not an Accessible Vehicle and no less than $2.122 per mile for a trip dispatched to an Accessible Vehicle for each mile a Driver transports a Passenger outside of the City

New York City Taxi and Limousine Commission, Rules of the City of New York, Title 35, § 59D-22(a)(1) (2026) Read the document

Beginning January 1, 2019, for each minute a Driver transports a Passenger in the City on a trip dispatched by the High-Volume For-Hire Service, the High-Volume For-Hire Service must pay the Driver no less than $0.287 per minute, divided by the High-Volume For-Hire Service's Utilization Rate, and for each minute a Driver transports a Passenger outside of the City on a trip dispatched by the High-Volume For-Hire Service that began in the City and ended outside of the City, the High-Volume For-Hire Service must pay the Driver no less than $0.574 per minute.

New York City Taxi and Limousine Commission, Rules of the City of New York, Title 35, § 59D-22(a)(2) (2026) Read the document

Two base rates, one for miles and one for minutes, both stated before dividing by the utilization rate below. A trip pays the sum of both rates together.

The utilization rate

Dividing by a rate below 100% raises the payout; a lower utilization rate means a higher effective per-mile or per-minute floor. The Commission fixed the two rates it currently applies rather than leaving them to float with each company's own numbers:

Applied Utilization Rate. The applied Utilization Rate for purposes of calculating the per-minute rate for all High-Volume For-Hire Services will be 53.3%. The applied Utilization Rate for purposes of calculating the per-mile rate for all High-Volume For-Hire Services will be 68.5%.

New York City Taxi and Limousine Commission, Rules of the City of New York, Title 35, § 59D-22(b) (2026) Read the document

Utilization is roughly the share of a driver's logged-in time actually spent carrying a paying passenger rather than waiting or driving to a pickup. Fixing it citywide, rather than letting each company report its own, is what keeps the formula from becoming a number the company controls.

What the formula comes to right now

Run the base rates through those utilization rates and the TLC publishes the resulting floor directly, so a driver does not have to do the division:

Rates effective March 1, 2026: Non-WAV trips: - $1.283 per mile - $0.681 per minute WAV trips: - $1.601 per mile - $0.681 per minute Out-of-town trips Standard rates apply within city limits. Outside of New York City, these rates apply: - $1.757 per mile (non-WAV) - $2.193 per mile (WAV) - $0.725 per minute

New York City Taxi and Limousine Commission, Driver Pay Rates (2026) Read the document

WAV is a wheelchair-accessible vehicle, which carries a higher minimum throughout. A minute rate stays the same, whether the trip stays in the city or crosses the line; only the mileage rate changes outside city limits.

When it is adjusted

The rates are not set once and left alone. The rule itself builds in an annual update:

Consumer Price Index Adjustments. Beginning March 1, 2024 and continuing each calendar year thereafter, the dollar amounts in the per mile rates and per minute rates contained in this subdivision will be adjusted using the percent increases, if any, in the annual average Consumer Price Index for Urban Wage Earners and Clerical Workers for the NY-NJ-PA metro area between the previous calendar year and two calendar years prior.

New York City Taxi and Limousine Commission, Rules of the City of New York, Title 35, § 59D-22(a)(4) (2026) Read the document

The minimum high-volume for-hire service driver pay rates will increase in accordance with the 2025 annual average increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Pursuant to TLC Rule § 59D-22(a)(4), a 3.36% increase in the minimum per-mile and per-minute rates will be effective beginning March 1, 2026, for all trips dispatched by high-volume for-hire services, currently Lyft and Uber.

New York City Taxi and Limousine Commission, Industry Notice #26-03: Minimum High-Volume For-Hire Driver Pay Rates to Increase 3.36% Beginning March 1, 2026, February 24, 2026 (2026) Read the document

Uber and Lyft are named because they are, as of this notice, the only two companies that meet TLC's threshold for a high-volume for-hire service. The rule is written for the category; today that category has two members.

What happens if a driver is underpaid

The rule carries its own penalty, separate from whatever the driver is still owed:

Fine: $500 per instance of under payment. In addition to the penalty payable to the Commission, the Hearing Officer must order the High-Volume For-Hire Service to pay restitution to the Driver, equal to the amount not paid to the Driver in violation of this rule.

New York City Taxi and Limousine Commission, Rules of the City of New York, Title 35, § 59D-22(a), penalty schedule (2026) Read the document

For how a fare is set on the other side of the industry, see how a yellow cab fare is set.

The questions New Yorkers actually ask

How does TLC's minimum pay formula work for Uber and Lyft drivers?

Two rates: a per-mile rate and a per-minute rate, each of which TLC's rules set as a base dollar figure divided by a fixed utilization rate. As of March 1, 2026 the resulting floor is $1.283 per mile and $0.681 per minute for a standard vehicle within the city.

What is the utilization rate in TLC's driver pay formula?

A fixed rate the Commission applies to every high-volume for-hire service rather than letting each company report its own: 68.5% for the per-mile calculation and 53.3% for the per-minute calculation. Dividing by a rate below 100% raises the effective minimum a driver is owed.

How much is the minimum pay per mile for Uber and Lyft drivers in NYC?

$1.283 per mile for a standard vehicle and $1.601 per mile for a wheelchair-accessible vehicle, effective March 1, 2026. Trips that begin in the city but end outside it pay a higher per-mile rate for the out-of-city portion.

When does TLC adjust the minimum driver pay rate?

Every year, beginning March 1, 2024, by the annual average change in the Consumer Price Index for Urban Wage Earners and Clerical Workers for the New York region. The adjustment that took effect March 1, 2026 was a 3.36% increase.

What happens if Uber or Lyft underpays a driver below the TLC minimum?

The company can be fined $500 per instance of underpayment, and a hearing officer must also order it to pay the driver restitution equal to the amount that was not paid.

The documents

The public records this page draws on. Read them yourself:

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