Calculate your annual tax-free commuter benefit (up to $340/month for transit + $340/month for parking in 2026) and see the gross salary equivalent. With 5-day RTO now mandatory for most feds, this is the fastest unclaimed raise in federal employment.
Up to $340/month tax-free for transit or vanpool — plus a separate $340/month for qualified parking. That is up to $8,160/year combined, tax-free.
Authority: 5 U.S.C. § 7905; IRC § 132(f); EO 13150 (April 21, 2000). Administered by DOT/TRANServe for 108 federal entities.
Actual monthly cost for Metro rail, commuter rail, bus, ferry, or qualifying vanpool. Capped at $340/month.
Separate $340/month cap for commercial parking at or near your work location. Leave blank if not applicable.
Typical 5-day in-office = ~20 days/month. Adjust if you have approved telework.
Used to calculate your combined tax savings. Select the scenario closest to your state.
Used to estimate your salary and tax bracket. Or enter salary directly below.
Enter your total annual pay including locality. Leave blank to use GS grade/step lookup.
Enter your monthly transit cost and confirm your GS grade/step to calculate.
With five-day return-to-office mandates now in effect for most of the federal workforce, commuting costs that were near-zero during telework years are now a real monthly expense. The federal transit subsidy — authorized by Executive Order 13150 (April 21, 2000) and 5 U.S.C. § 7905, with tax authority under IRC § 132(f) — turns that recurring commuting cost into a fully tax-free benefit.
The 2026 limit is $340/month for transit or vanpool plus a separate $340/month for qualified parking — confirmed in IRS Revenue Procedure 2025-32 and IRS Publication 15-B 2026. The combined maximum is $8,160/year. Up from $325 in 2025 and $315 in 2024.
A GS-11 in Virginia or Maryland at the 22% federal bracket with 5% state income tax has a combined rate of ~34.65%. The $4,080 annual transit benefit divided by (1 − 0.3465) = $6,240 gross raise equivalent (FedTools 2026 analysis).
| Tax Scenario | Combined Rate | Gross Salary Equivalent |
|---|---|---|
| 22% federal + 7.65% FICA, no state tax | 29.65% | $5,800 |
| 22% federal + 7.65% FICA + 5% state (e.g. VA/MD) | 34.65% | $6,240 |
| 24% federal + 7.65% FICA, no state tax | 31.65% | $5,970 |
| 24% federal + 7.65% FICA + 5% state | 36.65% | $6,445 |
| 32% federal + 1.45% Medicare only (over SS wage base) | 33.45% | $6,130 |
| Year | Monthly Transit Limit | Annual Maximum | Year-over-Year Change |
|---|---|---|---|
| 2022 | $280 | $3,360 | — |
| 2023 | $300 | $3,600 | +$20/mo |
| 2024 | $315 | $3,780 | +$15/mo |
| 2025 | $325 | $3,900 | +$10/mo |
| 2026 | $340 | $4,080 | +$15/mo |
Sources: IRS Revenue Procedures 2021-45, 2022-38, 2023-34, 2024-40, 2025-32. Parking benefit follows the same limits.
The transit benefit is one piece of your total federal compensation. Pair it with your exact GS salary by locality and your FERS retirement projection for a complete picture.