Work, Pay & Leave Rights · Surprise rank #280
Work Full-Time in NYC? You May Be Entitled to Buy Transit With Pre-Tax Pay
NYC requires many private and nonprofit employers with 20 or more full-time non-union employees in the city to offer eligible full-time workers a way to pay qualified commuting costs with pre-tax income.
Who
Generally full-time non-union employees of covered non-government NYC employers with 20 or more full-time non-union workers in New York City. Full-time means an average of at least 30 hours per week under the city rule.
Where: Employees working in New York City for covered employers; workers may live outside the city.
What to do
Start here: Ask HR or payroll for the employer's commuter-benefits enrollment materials. If a covered employer refuses to offer the benefit, DCWP accepts complaints through its online services or 311.
Eligibility: You must work for a covered employer and use qualifying transit or commuter-van transportation. Residence outside NYC does not disqualify you if the covered work is in NYC.
What you get
The Commuter Benefits Law requires covered employers to offer eligible workers payroll deductions for qualified mass transit and commuter-van costs before taxes.
Benefit: Up to $340 per month of pre-tax income can be used for qualified transportation in 2026, reducing taxable pay and therefore commuting cost after taxes.
Possible value: Tax savings depend on wages, tax rate and transit spending. The maximum pre-tax transit amount is $340 per month in 2026.
Good to know
Important: The NYC mandate does not require the employer to pay your fare; it requires access to pre-tax payroll deductions. It does not require a qualified-parking benefit, and government employers and CBA-covered workers are generally outside this city mandate.
Availability: Active; 2026 monthly pre-tax transportation limit is $340.
Why people miss it: Workers may assume commuter benefits are an optional perk, but covered NYC employers are legally required to offer the pre-tax option.
Sources reviewed: Aug 10, 2026