Calculate the Savings for DeduCT-a-Ride

If your employer offers DeduCT-a-Ride, you may choose to use pre-tax income to pay for transit and vanpool fares and parking costs. As of January 2006, you can use up to $105 per month for transit and vanpool fares and/or up to $205 per month for qualified parking.

To estimate your savings with DeduCT-a-Ride, just use the commuter calculator below:

  1. Calculate your total tax rate. This involves three steps.
    1. Choose your federal tax rate. Most people fall into the 25% category. The federal tax rates are as follows: 10%, 15%, 25%, 28%, 33%, 35%.
    2. Find you state tax rate. If you live in Connecticut, this rate is 4.5%.
    3. To calculate your total tax rate, add up your federal tax rate (as a decimal), your state tax rate (as a decimal), and FICA (which is .0765).

    For example, as a typical Connecticut resident your total tax rate would be:

    .25 (federal) + .045 (state) + .0765 (FICA) = .3715

  2. Calculate your monthly transit expenses. You can set aside up to $105/month in transit costs.
  3. Calculate your monthly parking expenses. You can set aside up to $205/month in parking costs.
  4. commuter tax savings = (total tax rate × 12 × (monthly transit expenses + monthly parking expenses))

For example, if I am a typical Connecticut resident, with monthly transit expenses of $52 and monthly parking expenses of $75, my commuter tax savings would be:

= (.3715 × 12 × (52 + 75))
= (.3715 × 12 × 127)
=
$566.17 savings per year

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