Commuter benefits in Hawaii (statewide)
Meta description: Hawaii Revised Statutes §46-16.2 authorizes county commuter benefit ordinances. Here's how Honolulu and other counties apply the rule and how Alice handles it.
Target keywords: Hawaii commuter benefits law, Hawaii §46-16.2, Honolulu commuter benefit, Hawaii pretax transit, Hawaii county commuter ordinance
Footnote stack: Eligibility, IRS limits, Trademarks, Tax & legal advice
Body
Hawaii Revised Statutes §46-16.2 is the enabling statute that authorizes each Hawaii county to adopt its own commuter benefits ordinance. The statewide framework, in effect since 2018, sets the menu of acceptable benefit options: a §132(f) pretax election, an employer-paid subsidy, or employer-provided transportation. The City and County of Honolulu is the most active implementer, with the threshold applying to employers with more than 20 employees.
What the law requires
Covered employers must offer at least one of: (1) a pretax election letting employees exclude transit, vanpool, or bicycle commuting costs from taxable wages up to the IRS monthly limit ($340/month transit and $340/month parking in 2026); (2) an employer-paid transit or vanpool subsidy; or (3) employer-provided transportation in a vanpool, bus, or shuttle.
What it doesn't do
The statute is explicit that it does not require employees to change how they commute, and it does not override existing collective bargaining agreements. Employers may offer more generous benefits.
Eligible Hawaii transit
TheBus and TheHandi-Van on Oahu, county transit systems on Maui, Hawaii Island, and Kauai, plus vanpool and qualified parking near worksites (garages, lots, meters, parking apps).
Why Hawaii hourly employers choose Alice
Hawaii's economy is dominated by tourism, food service, retail, and healthcare, all heavily hourly. Traditional office-worker pretax benefit companies where you pay up front and manually manage enrollment and payroll on your own don't fit. Alice is purpose-built for hourly and frontline teams. No up-front employer cost. No manual open enrollment to manage. No employee pre-funding required and only a small reserve deposit from the employer. We'll get you onboarded in one call. Alice connects with 30+ payroll providers, including connections to ADP, UKG, Paylocity, Paycom, Paychex, Toast, and others.
Hawaii employers: sales@thisisalice.com or (929) 552-4625. Employees: support@thisisalice.com or (888) 431-4355.
For the full list of eligible commuter expenses, see "What parking and transit expenses are eligible?" at help.thisisalice.com/article/52. Eligibility is set by IRC §132(f). Figures shown are for the 2026 plan year and are set by the IRS. Limits are indexed annually; we update this article each November when the IRS issues the following year's Revenue Procedure. Trademarks, brands, and product names referenced in this article are the property of their respective owners. References are for descriptive purposes only and do not imply endorsement. Alice does not provide tax, legal, or financial advice. Consult your own tax preparer, lawyer, or financial advisor for guidance specific to your situation.