Transit cost vs. pretax savings by US city

Meta description: Monthly transit costs and the matching pretax savings across major US cities. Based on 2026 published fares.

Target keywords: transit cost by city, monthly transit pass cost, pretax transit savings by city, commuter benefits city comparison

Footnote stack: Savings estimates, Plan details, Tax & legal advice

Body

The pretax §132(f) transit benefit is most valuable in cities with high monthly transit costs. Below is a city-by-city comparison of typical monthly transit passes (2026) and the corresponding annual pretax savings at a 25% combined federal/state/FICA tax rate. Save on taxes on every eligible transit dollar.

City breakdown

[Alice content team to fill in 2026 aggregate data: monthly transit pass cost, annual cost, annual employee savings at illustrative tax rate, employer FICA savings, for each of the following cities:]

New York City (MTA, OMNY monthly)
Washington, DC (WMATA SmarTrip monthly)
San Francisco (Muni Monthly, Clipper, BART)
Los Angeles (Metro 30-day, Metrolink)
Boston (MBTA LinkPass monthly)
Chicago (CTA 30-day Pass)
Philadelphia (SEPTA TransPass)
Atlanta (MARTA monthly)
Seattle (ORCA monthly)
Portland, OR (TriMet monthly)
Denver (RTD MyRide / EcoPass)
Minneapolis (Metro Transit 31-day)
Honolulu (TheBus monthly)
Miami (Miami-Dade Easy Card monthly)
Houston, Dallas, San Diego, Phoenix (regional systems)

How the math works

For a city with a $120/month transit pass, annual cost is $1,440. At a 25% combined tax rate, the worker keeps $360/year. The employer captures ~$110/year in FICA on the same election. For a city like NYC with a higher pass price, the savings scale up.

Caveats

City passes don't capture every employee's actual spend. Many workers pay per-trip or use partial passes. Vanpool and parking are separate categories with their own cap ($340/month parking in 2026). Cost figures may shift with annual fare adjustments.

Cities with mandates

Of the cities above, NYC, DC, SF, LA, Philadelphia, Berkeley/Richmond CA (Bay Area), and Honolulu have ordinances requiring covered employers to offer pretax commuter benefits. See the jurisdiction-specific articles 1 to 7.

Employers: sales@thisisalice.com or (929) 552-4625. Employees: support@thisisalice.com or (888) 431-4355.

Savings shown or implied, including any reference to "cash back" or take-home pay, are illustrative. Actual savings depend on your tax rate, benefit elections, and eligible spending each pay period. "Cash back" in Alice's materials refers to the federal, state, and FICA payroll taxes you don't pay on eligible commuter spending. Specific benefits, election rules, and run-out periods depend on your employer's plan design. Check with your HR team or plan administrator for details. Alice does not provide tax, legal, or financial advice. Consult your own tax preparer, lawyer, or financial advisor for guidance specific to your situation.