Commuter Benefit Calculator
Bus / subway / train / vanpool pass.
Qualified parking AT or NEAR work / park-and-ride.
2026 brackets: 22% covers single $50,400–$105,700; MFJ $100,800–$211,400.
0 if no state tax (TX/FL/WA/etc.).
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How to use
- 1 Enter your monthly transit cost: bus pass, train ticket, subway, light rail, vanpool (6+ persons). Use actual ticket cost or estimated commute frequency × per-ride.
- 2 Enter your monthly qualified parking cost: parking AT or NEAR work, OR park-and-ride near transit. NOT eligible: tolls, gas, bike share (eliminated by TCJA 2018).
- 3 Enter your federal marginal tax rate (decimal — 0.22 for 22% bracket, 0.24 for 24%, etc.).
- 4 Enter your state income tax rate. 9 states have 0% (FL, TX, WA, NV, SD, WY, AK, TN, NH).
- 5 Click Calculate to see pre-tax amount (capped at $340/mo each), excess taxable amount, and total annual savings (federal + FICA 7.65% + state).
About Commuter Benefit Calculator
FAQ
Q What is the 2026 commuter benefit limit?
$340/month each for transit and parking (raised from $325 in 2025) under IRC §132(f). Combined annual limit: $4,080 transit + $4,080 parking = $8,160 pre-tax. Increase set by IRS Rev. Proc. 2025-32.
Q How much do commuter benefits save in taxes?
Roughly 30-45% of every commuter dollar. Combined federal income tax (12-37% marginal) + FICA 7.65% + state tax (0-13%) avoided on pre-tax amounts. A $340/mo transit benefit saves $1,200-$2,000/yr depending on bracket and state.
Q Can I use commuter benefits for Uber or Lyft?
Generally NO — single-passenger rideshare is NOT eligible. EXCEPTIONS: UberPool/Lyft Line counted as mass transit; vanpool (6+ person capacity) qualifies. Standard taxi or single-rider rideshare to/from work is NOT a qualified expense.
Q Are bicycle commuter benefits available?
NO — TCJA 2018 suspended bicycle commuter pre-tax benefit through 2025. OBBBA did NOT restore it. Currently bike share, e-bike purchase, repair, etc. are NOT pre-tax eligible. Bike share employer reimbursement now counts as taxable wages.
Q Does my employer have to offer commuter benefits?
Federally NO — voluntary. But several jurisdictions mandate it: NYC, San Francisco, Berkeley, DC, New Jersey statewide (20+ employees), Seattle, LA County (50+), Philadelphia (50+). Smaller cities also: Tukwila WA, Cambridge MA, etc.
Q Can I get a refund for unused commuter benefits?
NO — IRC §132(f)(7) prohibits cash-out of unused commuter benefits. Money in your commuter account either rolls over month-to-month or is forfeited (employer plan rules). This is why most people only contribute exact monthly cost, not max.
Q What if my commute costs more than $340/month?
You can ALSO pay the excess from after-tax wages. Many SF/NYC commuters with $400-$500/mo costs use $340 pre-tax + $60-$160 after-tax. The pre-tax portion still saves 30-45% tax; only excess pays full tax.
Q Are commuter benefits use-it-or-lose-it?
Depends on plan: many roll over forever (transit account stays in balance until used). DCFSA (dependent care) is strict use-it-or-lose-it. Health FSA: up to $680 carryover. Commuter: usually rolls over but can't cash out. Check your specific plan.
Official resources
IRS Rev. Proc. 2025-32 — 2026 §132(f) Commuter Limits
Official IRS Revenue Procedure setting the 2026 $340/month transit and parking pre-tax fringe limits.
IRS Publication 15-B — Employer Tax Guide to Fringe Benefits
Internal Revenue Service official guide to qualified transportation fringe benefits including §132(f) details.
NYC Office of Labor Policy — NYC Commuter Benefits Law
New York City official guide to mandatory employer commuter benefits for employers with 20+ FT employees.
NJ DOL — Pre-Tax Transit Benefits Mandate
New Jersey Department of Labor official guide to statewide pre-tax commuter benefit mandate (20+ employees).