Does this include payroll taxes?

It uses a single marginal rate. Include payroll effects by using a combined rate.

Defaults reflect recent IRS limits; update if regulations change.

What about employer subsidies?

Not modeled. Add subsidies by reducing your spend inputs.

Do unused amounts roll over?

Varies by plan/provider. Check your employer’s commuter policy.

No. It’s an estimate—consult HR or a tax professional for specifics.

finance calculator

Commuter Benefits Tax Savings

Estimate tax savings from pre-tax transit and parking benefits versus paying post-tax.

Results

Pre-tax transit amount: $200
Pre-tax parking amount: $150
Monthly tax savings: $105
Annual tax savings: $1,260
Monthly net commuting cost: $245
Annual net commuting cost: $2,940

How to use this calculator

Enter monthly transit and parking spend.
Enter your marginal tax rate and benefit caps.
Review tax savings and your after-tax commuting cost.

Inputs explained

Marginal rate: Combined federal/state/local marginal rate that applies to the last dollar of income.
Benefit caps: Monthly IRS commuter caps; update if regulations change.

How it works

We cap transit and parking at the entered benefit limits. Tax savings = (pre-tax transit + parking) × marginal rate.

Net commuting cost = spend − tax savings. Annual values multiply the monthly amounts by 12.

Formula

Pre-tax transit = min(transit spend, transit cap)
Pre-tax parking = min(parking spend, parking cap)
Monthly tax savings = (pre-tax transit + pre-tax parking) × marginal tax rate
Annual tax savings = Monthly tax savings × 12
Net monthly cost = Transit spend + Parking spend − Monthly tax savings
Net annual cost = Net monthly cost × 12

When to use it

Quantifying the value of enrolling in commuter benefits.
Planning open enrollment selections.
Comparing monthly transit vs parking allocations.

Tips & cautions

Use your true marginal rate (federal + state/local) for best accuracy.
If your spend exceeds the cap, only the capped amount is pre-tax.
Parking and transit caps are separate—fill both if eligible.
Simplified single marginal rate; does not model payroll taxes separately.
Caps may change annually; update defaults as needed.
Does not include employer subsidies or fees.

Worked examples

$200 transit, $150 parking, 30% marginal rate

Pre-tax amounts = $200 transit + $150 parking
Monthly tax savings = $350 × 30% = $105
Annual tax savings = $1,260
Net monthly commuting cost = $245

Deep dive

Estimate commuter benefit tax savings by entering monthly transit/parking, caps, and your marginal tax rate.

See monthly and annual savings to decide if commuter benefits are worth it.

FAQs

Does this include payroll taxes?: It uses a single marginal rate. Include payroll effects by using a combined rate.
Are caps current?: Defaults reflect recent IRS limits; update if regulations change.
What about employer subsidies?: Not modeled. Add subsidies by reducing your spend inputs.
Do unused amounts roll over?: Varies by plan/provider. Check your employer’s commuter policy.
Is this tax advice?: No. It’s an estimate—consult HR or a tax professional for specifics.

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