Employees throughout the region are discovering that Transit Benefits can save them money! Section 132(f) of the federal tax law allows for employees to have money deducted pre-tax (up to the monthly limit) from their paycheck to pay for their transit fares. By deducting these pre-tax, employees can save up to 40% through reduced taxes paid. Below is an example of how someone can save through the pre-tax deduction.

Monthly Income Without
Pre-Tax Benefit1
Monthly Gross Salary    $4,000
Federal Taxes   ($1,120)
FICA    ($ 306)
State Tax   ($ 200)
Post-Tax Income   $2,374
Transit Fare2   ($ 260)
After Tax & Transit   $2,114
Monthly Income With
Pre-Tax Benefit1
Monthly Gross Salary    $4,000
Transit Fare2   ($ 260)
Pre-Tax Income    $3,740
Federal Taxes   ($1,049)
FICA   ($ 286)
State Tax   ($ 187)
After Tax & Transit   $2,218

Savings of $104 each month   |   $104 x 12 months = $1,248 in Annual Savings

1) Assumes employee included in the 28% tax bracket, pays 5% state sales tax and 7.65% in FICA.
2) Assumes employee deducts the maximum each month.

How do I use transit benefit?

View our portfolio of products available for you to pay for your transit fares.

Getting Started

If you already commute on transit and aren’t enrolled in a transit benefit fare program, check with your employer to see if one is offered.  If so, sign up!  If your employer does not offer a transit benefit fare program, encourage your employer to enroll.  You can send your employer an email containing a link to the RTA Transit Benefit Fare Program website.