Skip to Content
Streetsblog New York City home
Streetsblog New York City home
Log In
Commuting

Garodnick Bill Would Give Transit Riders a Tax Break

A City Council bill from Dan Garodnick could save a lot of transit riders a nice chunk of change.

Hundreds of thousands of NYC commuters could save $443 a year by buying a monthly MetroCard with pre-tax dollars. Photo:##https://www.flickr.com/photos/36217981@N02/5460212022/in/photolist-9jv1NA-bDQkXm-bWoBRH-dwvtkn-9K5XbZ-7FUuE-5XKoqA-jFDLr9-5S4TWT-5SkBj3-4g2GLm-8m3q1D-dwvv2e-4Ea5iS-e32iSn-617i6v-7Hucq1-5SzRcs-bXdFu6-5SHxsX-diocNN-5S9f37-5SwWRW-4TesNy-4kEKU3-5TTjiV-9PgYp6-pxmEh-5S9f1L-82TkQ3-dbLJRp-e32iun-e32iC2-e37ZKY-e32iMc-e3811N-4T9hkr-7LLc2L-fwqqCg-9yhssj-fwEH7Y-o4GnR-dbLLxC-68EQcr-dyxMPa-e3819q-5QXy5T-5QwG7h-6nTYHQ-5QAB8N##Tim Adama/Flickr##
Hundreds of thousands of NYC commuters could save $443 a year by buying a monthly MetroCard with pre-tax dollars. Photo: ##https://www.flickr.com/photos/36217981@N02/5460212022/in/photolist-9jv1NA-bDQkXm-bWoBRH-dwvtkn-9K5XbZ-7FUuE-5XKoqA-jFDLr9-5S4TWT-5SkBj3-4g2GLm-8m3q1D-dwvv2e-4Ea5iS-e32iSn-617i6v-7Hucq1-5SzRcs-bXdFu6-5SHxsX-diocNN-5S9f37-5SwWRW-4TesNy-4kEKU3-5TTjiV-9PgYp6-pxmEh-5S9f1L-82TkQ3-dbLJRp-e32iun-e32iC2-e37ZKY-e32iMc-e3811N-4T9hkr-7LLc2L-fwqqCg-9yhssj-fwEH7Y-o4GnR-dbLLxC-68EQcr-dyxMPa-e3819q-5QXy5T-5QwG7h-6nTYHQ-5QAB8N##Tim Adams/Flickr##
Photo: Tim Adama/Flickr

Federal law lets commuters spend up to $130 in tax-free income a month on transit fares. For a New Yorker earning an average wage, buying a monthly MetroCard with pre-tax dollars adds up to $443 in annual savings, according to Riders Alliance, which issued a report backing the benefit. But it's only available through employers who offer the program.

Garodnick's bill would require companies with a staff of 20 or more to make the benefit available to employees. The bill would make the benefit available to 605,000 New Yorkers, and commuters who work in the city but live elsewhere can also sign up. 

Garodnick was joined by council colleagues Ydanis Rodriguez and Helen Rosenthal, along with Riders Alliance, at a Sunday presser announcing the measure.

"It’s not just a savings for employees, but for the employers themselves," said Garodnick. "Dollars come out before they pay their payroll taxes for their employees." The Riders Alliance report says companies that offer the program can save $103 per year per participating employee.

Riders Alliance estimates that the benefit would reduce city and state tax revenues by at least $6 million and $10 million, respectively. However, the report says, "not only would tens of millions of dollars be saved each year by New Yorkers, but it would also enter the economy in a way that directly encourages increased use of -- and spending toward -- public transit."

With the lower tax burden, transit riders would collectively have $85 million to inject into the local economy, the report notes.

"Fares keep going up and this is something the city can do to help riders save money," said John Raskin, Riders Alliance executive director.

Stay in touch

Sign up for our free newsletter

More from Streetsblog New York City

Staten Islanders Fight To Keep Park Car-free

Politicians believe cars will make the park safer, but the opposite is the case.

April 18, 2025

Friday Headlines: Trump’s Revenge Tour Now Includes a Stop at Penn Station

U.S. DOT Secretary Sean Duffy is so eager to own the libs at the MTA that he's now taken himself hostage. Plus other news.

April 18, 2025

Exclusive: Cops Writing 15% of Their Red Light Tix to Cyclists, Who are Just 2% of Road Users

We received data from a Freedom of Information Law request showing that the NYPD is intent on writing red-light tickets to the lightest, slowest-moving vehicles instead of doubling-down on enforcement against 3,000-pound-plus killing machines.

April 18, 2025

OPINION: DOT’s Argument Against Universal Daylighting Has a Fatal Flaw

Hydrant zones and bus stops are not a suitable stand-in for universal daylighting — yet DOT is using them to argue against safety, our contributors write.

April 18, 2025

Helicopter Deaths, Fast and Slow

Choppers harm us. Suddenly but also steadily.

April 17, 2025
See all posts