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Mass Transit Savings Example


You earn $30,000 annually and pay $65/month ($780/yr) out of pocket for work-related mass transit/commuting costs.

Without Mass Transit Reimbursement:

Gross (taxable) Pay $30,000
Taxes @ 25% -$7,500
Mass Transit Costs -$780
Net Take Home Pay $21,720

With Mass Transit Reimbursement:

Gross Pay $30,000
Pre-Tax Mass Transit Deduction -$780
Taxable Pay $29,220
Taxes @ 25% -$7,305
Net Take Home $21,915

By participating in your employer's Section 132 Mass Transit Reimbursement Plan you would have increased your net take home pay by $195 per year.

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