If your employer offers Commuter Tax Benefit, you may choose to use pre-tax income to pay for transit and vanpool fares and parking costs. As of January 2008, you can use up to $115 per month for transit and vanpool fares and/or up to $220 per month for qualified parking.

To estimate your savings with Commuter Tax Benefit, 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 your 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 Conn. 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 $115/month in transit costs.
3.	Calculate your monthly parking expenses. You can set aside up to $220/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