Employee Benefits

Employees throughout the region are realizing the savings that can be had by utilizing Transit Benefits. 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 ($300)
After Tax & Transit $2,074
Monthly Income With
Pre-Tax Benefit1
Monthly Gross Salary  $4,000
Transit Fare2 ($300)
Pre-Tax Income  $3,700
Federal Taxes ($1,036)
FICA ($283)
State Tax ($185)
After Tax & Transit $2,196


Savings of $122 each month  |  $122 x 12 months = $1,464 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.