Employee Benefits

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 $2,374
Transit Fare2 ($ 270)
After Tax & Transit $2,104
Monthly Income With
Pre-Tax Benefit1
Monthly Gross Salary  $4,000
Transit Fare2 ($ 270)
Pre-Tax Income  $3,730
Federal Taxes ($1,044)
FICA ($ 285)
State Tax ($ 187)
After Tax & Transit $2,214

Savings of $110 each month  |  $110 x 12 months = $1,320 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.