Quick Summary:
- Choose Lincoln Tunnel for Midtown, but avoid weekday 7–10am inbound.
- Use Holland Tunnel for Downtown and Jersey City, expect approach queues.
- Watch for dedicated bus lane rules near Lincoln on weekday mornings.
- Cashless tolls post to your car hire invoice later, with admin fees.
When you are driving between New Jersey and Manhattan, the Lincoln Tunnel and the Holland Tunnel are the two workhorse crossings. They can feel interchangeable on a map, yet they behave very differently in real traffic, especially at commuter peaks and around weekend leisure surges. If you are using a car hire in New York, choosing the right tunnel can save time, reduce stressful lane changes, and make your toll costs more predictable once they appear on your final hire bill.
This guide compares both tunnels by where you are going, Midtown, Downtown, or onward to Newark, and explains practical lane rules (including the well known bus lane near Lincoln). It also breaks down how cashless tolling is typically billed in a hire vehicle, so you know what to look for after your trip.
Lincoln vs Holland, the basics that affect your trip
Lincoln Tunnel connects Weehawken, New Jersey to Midtown Manhattan (roughly 39th Street and Dyer Avenue). It is usually the most direct choice for Midtown destinations, Times Square, the Garment District, the Hudson Yards area, and many Midtown hotels. It has three tubes and a complex set of approaches on both sides, so the “last mile” into Manhattan can be slow and lane dependent.
Holland Tunnel connects Jersey City, New Jersey to Lower Manhattan (Canal Street area). It is typically better for Downtown, SoHo, Tribeca, the Financial District, and for reaching Brooklyn via surface streets or nearby bridges. It is also a popular choice for drivers aiming for the west side of Manhattan below 14th Street.
Both crossings are operated by the Port Authority of New York and New Jersey and both use cashless tolling. That means there is no toll booth payment in cash, and the way the toll hits your final cost depends on whether your hire vehicle has a toll pass and how your provider processes tolls and related fees.
Which tunnel is best for Midtown Manhattan?
If your destination is Midtown, Lincoln is usually the sensible default because it surfaces in Midtown. The catch is that Midtown itself can be the slow part, not the tunnel. The exit feeds into a dense grid with frequent lane drops, bus activity, and congestion around the Port Authority Bus Terminal area.
Best times for Lincoln to reach Midtown tend to be outside the weekday commuter peak. Inbound traffic from New Jersey is often heaviest in the morning. If you can choose, mid morning to early afternoon is typically calmer than 7–10am. Evenings can also be heavy in both directions, and Fridays often behave like a peak period for longer.
Lane rule to know, the Exclusive Bus Lane (XBL): on weekday mornings an approach lane to Lincoln is dedicated to buses. That can change which lanes general traffic can use and can create sudden merges where drivers are trying to get into the correct tube. If you see signs for the bus lane restriction, stay alert and follow overhead lane controls rather than relying on sat nav at the last moment.
For travellers collecting a vehicle at an airport and heading into Midtown, it can help to plan a buffer, especially if your schedule is tied to check in times. If you are comparing pick up options in the region, Hola Car Rentals has location pages for New York and Newark area collection, including car rental New York JFK and car rental New Jersey EWR, which are useful for timing your first drive.
Which tunnel is best for Downtown, SoHo and the Financial District?
If you are headed for Downtown, Holland is usually more direct. You come out close to Canal Street, with quick access to Tribeca, SoHo, Chinatown, and routes continuing south and east. That said, Downtown streets can clog easily, and the tunnel approaches are notorious for queues that can begin well before the portal during peak times.
Best times for Holland vary by day. Weekday mornings are busy inbound, and weekday afternoons and early evenings can be busy outbound as well. Weekends can bring a different pattern, with heavy mid day traffic linked to shopping, events, and airport runs. If you can travel early morning on a weekend, you often avoid the worst approach queues.
Practical routing tip: Holland can feel “close” to many Downtown destinations, but if your final address is east of Broadway or further uptown, you may spend more time on surface streets than expected. In that case, Lincoln plus a crosstown route can occasionally be competitive, but only if Midtown is not gridlocked. Treat it as a time of day decision rather than a fixed rule.
Best tunnel for Newark Airport, Jersey City and onward New Jersey driving
Neither tunnel goes to Newark Airport, but your choice affects how quickly you can clear Manhattan and connect to New Jersey highways. If you are leaving Manhattan for Newark or the airport area, the decision often comes down to where you are starting.
Starting in Midtown: Lincoln is usually easier because it places you straight onto the west side, closer to the Lincoln approaches and the New Jersey side connections. However, departing Midtown in the late afternoon and early evening can be slow, and Fridays can be especially unpredictable.
Starting Downtown: Holland is normally the better bet. It drops you into Jersey City with comparatively quick access to New Jersey routes. The trade off is that the tunnel approach on the Manhattan side can back up around Canal Street and nearby arterials.
If you have a larger party or luggage for airport runs, it can be worth checking vehicle categories suited to airport transfers and group travel, such as minivan rental Newark EWR. If you are collecting from Newark and prefer specific suppliers, Hola also provides brand pages like Dollar car rental New Jersey EWR, which can help you compare policies that affect toll processing and fees.
Peak time traffic patterns to plan around
Traffic through both tunnels is shaped by commuter flows, event traffic, and the simple geometry of funnelling multiple highways into a narrow portal. While conditions change day to day, these patterns are common enough to plan around:
Weekday mornings (inbound to Manhattan): expect heavier New Jersey to Manhattan volumes, especially towards Midtown. Lincoln can be particularly slow due to bus operations and Midtown spillback. Holland also slows, but the intensity depends on Downtown street conditions.
Weekday afternoons and early evenings (outbound to New Jersey): both tunnels can back up leaving Manhattan. Lincoln outbound delays can be amplified by congestion on the west side approaches. Holland outbound delays often reflect Downtown street grids and merging onto New Jersey arterials.
Friday afternoons: treat as a separate category. Leisure departures, airport runs, and commuter traffic overlap. If you must drive, choose the tunnel that minimises your surface street time in Manhattan, because that is often where the delay becomes unpredictable.
Weekends: mid day can be heavy in both directions. If you have flexibility, early morning or later evening tends to be calmer. Also be mindful that roadworks and lane closures are more common overnight and can affect approaches.
A final timing factor is parking. Midtown garages can create additional delay once you exit Lincoln. Downtown street parking searches can create loops near the Holland exit. If you know you will be circling, build extra time, because that stress often gets blamed on the tunnel when it is actually the last few blocks.
Lane rules and approach tips that reduce stress
Both tunnels are heavily signed, but the density of signs can be overwhelming if you try to make last second decisions. These practical habits help:
Commit early to the correct approach. Sat nav reroutes can be tempting, yet the final approaches have limited opportunities to change lanes. If you are within a mile or two of the portal, focus on overhead signs and lane control signals.
Do not assume “any lane goes”. Approach lanes may be designated for specific destinations, tubes, or for buses at certain times. If you miss a lane, it is often safer to continue and re route later than to force a merge.
Watch for height and vehicle restrictions. Standard car hire vehicles are fine, but if you have a van or larger people carrier, confirm suitability and keep an eye on posted restrictions. If you are comparing larger vehicle options, a dedicated page like van hire Newark EWR can be a useful starting point for understanding what you are driving.
Keep your distance and avoid sudden lane changes. Stop start traffic into the portals leads to minor incidents, and a small bump can create large delays. The safest, quickest strategy is usually the calm one.
Cashless tolls and how they show on a car hire bill
Both the Lincoln and Holland tunnels use cashless tolling, typically via E ZPass or licence plate billing. In a car hire vehicle, this is usually handled in one of these ways:
1) Toll pass transponder in the vehicle. Many hire cars include an electronic toll device. When you drive through, the system reads the transponder and charges the toll account associated with the vehicle. You then see the toll and any related processing or convenience fees added to your rental charges, sometimes during the hire, sometimes after return.
2) Plate based tolling. If no transponder is used, the system photographs the plate and bills the registered owner of the vehicle, which is the rental company. The rental company then charges you the toll plus any administrative fee according to the hire agreement.
Why the charge can appear later: cashless toll transactions are not always posted instantly to the rental contract. It is common for tolls to appear days after you return the vehicle, depending on how quickly the toll operator transmits records and how the rental firm batches charges.
What to check on your invoice: look for line items separating the toll amount from any toll programme fees. If you took multiple crossings, you may see aggregated entries rather than one line per tunnel. If something looks unfamiliar, compare the time and location against your itinerary, because tunnels, bridges, and some express lanes can all post similarly.
How to avoid surprises: before you drive, ask how tolls are handled for your specific car hire contract, including whether a daily toll plan fee applies only on days you incur tolls, or for each day of the rental. Also confirm how parking garages handle toll tags, because some facilities can read a transponder at entry or exit, generating additional charges that are not tunnel related.
Choosing between Lincoln and Holland by destination
If you want a simple way to decide, match the tunnel to where you will spend the most time driving on Manhattan streets:
Midtown addresses (around 34th to 59th Street): Lincoln is usually the better match, especially outside weekday morning inbound peaks.
Downtown addresses (below 14th Street): Holland is usually the better match, but plan for approach queues near Canal Street.
Newark Airport and most of New Jersey: choose the tunnel closest to your starting point in Manhattan, and aim to leave outside the sharpest rush hour windows if you can.
With car hire in New York, the “best” tunnel is often the one that keeps your route simple. Fewer lane changes, fewer last minute merges, and fewer complicated crosstown moves tend to beat theoretical time savings on a map.
FAQ
Which tunnel is better for Times Square and Midtown hotels? The Lincoln Tunnel is typically better for Midtown because it exits near 39th Street. Expect slower travel in weekday morning inbound peaks and busy evenings.
Which tunnel should I use for SoHo, Tribeca or the Financial District? The Holland Tunnel usually makes more sense for Downtown. It exits near Canal Street, but queues can build on the Manhattan approach at busy times.
Are there special lane rules near the Lincoln Tunnel? Yes. On weekday mornings, a dedicated bus lane operates on the New Jersey approach. Follow overhead lane control signals and posted restrictions to avoid unsafe merges.
Do I pay tunnel tolls at a booth? No. Both tunnels use cashless tolling. In a hire car, tolls are generally billed through a transponder or via number plate, then charged to your rental account.
Why did the toll appear after I returned my car hire? Cashless toll records can take time to process. Rental companies often add tolls and any related administrative fees to your card days after return.
