Article 6 — How much can I save with Alice?
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Draft body
How much will I save with Alice?
Most frontline workers save about 20% on commuter spending when they use Alice. If you spend $200 a month on the bus and subway, that is roughly $40 a month you keep instead of paying in taxes, or about $480 a year.
How the math works
Every dollar you swipe on the Alice Card for an eligible commuter expense comes off your paycheck before federal income tax, FICA (Social Security + Medicare), and in most states, state income tax. The total combined rate for a typical hourly worker is around 20%, which is why most frontline workers save about 20% on commuter spending. Your actual savings depend on your tax rate.
A conservative example
Maria works a hospital shift schedule and rides the bus to and from work most days. She spends about $150 a month on transit fares.
- $150 × 12 months = $1,800 a year in commuting
- Approximate combined tax rate: 20%
- Approximate Alice savings: about $360 a year, kept in her paycheck
Maria does not file paperwork. She does not estimate her commute in advance. She just swipes the Alice Card at the farebox, and her paycheck reflects the pretax treatment automatically.
A bigger example
David parks at a commuter lot and takes the train. He spends $200 a month on parking and $250 a month on the train.
- $450 × 12 = $5,400 a year
- Approximate combined tax rate: 20%
- Approximate Alice savings: about $1,080 a year
David is well within the 2026 IRS limits of $340 per month for transit and $340 per month for qualified parking.
What changes the number
- Your federal tax bracket
- Whether your state has an income tax (no state tax means less to save)
- How much you actually spend each month
- Whether your employer adds a subsidy on top (some do)
What it is not
Keep more of what you make. Alice does not send a check, deposit "cash back," or pay a rebate. The savings show up as tax you do not pay, in the form of a slightly bigger paycheck the same week you spend.
Questions
Email support@thisisalice.com or call (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. It is income tax you keep, not a cash payment from Alice, your employer, or any third party. Alice does not provide cash back, rebates, or any direct financial benefit in connection with the Program. Alice does not provide tax, legal, or financial advice. Consult your own tax preparer, lawyer, or financial advisor for guidance specific to your situation.
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.