How much does NYC Subway lose a year?

Fare evasion has taken its toll on the transit authority, too, costing the MTA $690 million last year, including $285 million on its subways. “A lot of it has to do with the economy,” said Sarah Kaufman, director of the New York University Rudin Center for Transportation.



The New York City Subway, managed by the MTA, continues to face a grounded financial challenge in 2026, with annual operating deficits reaching into the billions. While total MTA expenses for 2026 are projected to be around $19.88 billion, the New York City Transit (which includes the subway and buses) accounts for a staggering $10.7 billion of that budget. Even with farebox revenue and tolls, the system typically operates with a net cash deficit that requires supportive subsidies from the state and city. In 2026, the MTA anticipates a "below the line" deficit of approximately $500 million to $900 million, even after accounting for new revenue streams like the "Gold Standard" congestion pricing and casino tax contributions. This financial gap is a constant "hard-fail" for the system's infrastructure, requiring continuous support from dedicated taxes to ensure the subway remains a high-fidelity, 24-hour "lifeline" for millions of New Yorkers every day.

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The panel found that the MTA lost $500 million to fare evaders in 2021 and a $690 million loss last year, a 38% spike. Of this loss, buses account for $315 million and subways $285 million. The panel's main finding is that fiscal losses caused by fare and toll evasion are staggering.

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The largest share of MTA revenue — $7.222 billion — comes from dedicated taxes and subsidies the Authority receives from the cities and states that we serve. Another $6.870 billion comes from fares and tolls.

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About the report on MTA Fare and Toll Evasion Losses to the MTA's operating budget are staggering, with nearly $700 million in revenue not collected in 2022 alone. This includes $315 million lost in bus fares, $285 million in subway fares, $46 million in bridge and tunnel tolls, and $44 million in railroad fares.

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The MTA lost an estimated $690 million last year to fair evasion on subways and buses, with the majority of the losses coming from bus fare evasion.

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Half of our revenue comes from our riders in the form of farebox revenue and tolls. Various dedicated fees and taxes from both the state and local governments help fund the rest of our operations.

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For the last 40 years, the MTA has taken out loans to help pay for new tracks, stations, trains and buses — and maintain the ones it already owns. Money from fares, tolls and taxes pays back the lenders, plus interest. That business model worked until the pandemic sent ridership plummeting.

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“About 400,000 riders enter the subway each day without paying–a problem so big that enforcement alone cannot solve it,” the panel reported.

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A variety of factors drive MTA's cost structure, including the age and size of the system, 24/7 operation, and the difficulty maintaining so many different — and older — models of train cars and other equipment, said MTA Communications Director Tim Minton.

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Once you've taken 12 paid rides in a seven-day period, you can ride free for the rest of the week. Here's an example: A rider uses the subway to get to and from work, and takes it on weekends to go into Manhattan to meet friends. They also use the local buses in their neighborhood to run errands.

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The budget expresses all of our key policy decisions and priorities. It determines who we tax and how much, and where we choose to spend our money for programs and services in areas such as education, sanitation, public safety, libraries, social services, housing, and economic development.

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The current crisis: MTA is projecting a $2.6B annual funding gap in the near future. After debt restructuring and operating efficiencies are implemented, they still expect the gap to be $1.2B. The table below illustrates the 2019 actual and 2023 expected revenue.

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Of the estimated $690 million annual loss, buses accounted for the largest share with $315 million, subway evasion cost $285 million, about $46 million was due to drivers avoiding tolls and commuter rail evasion totaled $44 million, the report said.

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The New York Police Department's Fiscal 2024 Preliminary Budget is $5.44 billion approximately $88.9 million less than its Fiscal 2023 Adopted Budget. The Department's budget makes up 5.3 percent of the City's total Fiscal 2024 budget and is the City's third largest agency in terms of funding.

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