Massachusetts Commuter Tax Deduction
Massachusetts Commuter Tax Deduction
Massachusetts General Laws Chapter 62, Section 3(B)(a)(15) provides a personal income tax deduction for certain commuting expenses. Residents can deduct qualifying commuter expenses exceeding $150, up to a maximum of $750 per person annually. This benefit helps reduce the tax burden for residents who use public transportation, pay highway tolls, or bike to work, making sustainable transportation more affordable. In 2023, the program was expanded to cover ALL transit fares (not just weekly/monthly passes), bikeshare memberships, bicycle purchases and maintenance, and regional transit authority fares.
This is a voluntary tax benefit, not a compliance requirement. Massachusetts residents may choose to claim this deduction on their personal income tax returns if they have qualifying expenses.
Covered individual: Any Massachusetts resident filing a Massachusetts income tax return with qualifying commuting expenses that exceed $150 annually and are not reimbursed by an employer. All filing statuses are eligible. Married couples can each claim up to $750 (maximum $1,500 per joint return). Dependents' expenses can be claimed by the taxpayer, subject to the same limits.
Covered employer: [Not applicable - this is an individual tax benefit, not an employer program]
This is a tax deduction, not a credit. Massachusetts residents who incur qualifying commuting expenses exceeding $150 annually can claim a deduction of up to $750 per person. The first $150 of expenses is not deductible. Expenses must be for commuting purposes and not reimbursed by an employer or claimed through other tax benefits.
To claim this deduction:
- Track qualifying commuting expenses throughout the tax year
- Calculate your deduction (total expenses minus $150, capped at $750)
- Report the deduction on your Massachusetts tax return Form 1 in the deductions section
- Maintain records for at least 3 years, including receipts, statements, and transit account reports
The Massachusetts Commuter Tax Deduction allows residents to deduct qualifying commuting expenses that exceed $150, up to a maximum of $750 per person annually. For married couples filing jointly, each spouse can claim up to $750 (maximum $1,500 per joint return). This deduction reduces your taxable income, resulting in tax savings based on your marginal tax rate. This benefit can be combined with federal pre-tax commuter benefits offered through employers, though you must reduce your deduction by any tax-free employer benefits received.
Covered expenses include:
- ALL MBTA fares (single rides, weekly, monthly passes)
- All 15 Regional Transit Authority fares
- E-ZPass and highway toll payments
- Bicycle purchases (including e-bikes)
- Bike maintenance and repairs
- Bikeshare memberships (Bluebikes, etc.)
- Municipal ferry and boat services
Not covered:
- Employer-provided transit benefits
- Personal vehicle expenses (gas, insurance, car payments, parking)
- Rideshare services (Uber/Lyft)
- Out-of-state transit
- Non-commuting trips (personal, recreational, or business travel)
Ready to start saving on your Massachusetts taxes while supporting sustainable transportation? Keep track of your eligible commuting expenses and claim your deduction!
There are no penalties associated with this voluntary tax benefit. However, as with any tax deduction, providing false information or claiming ineligible expenses could result in standard tax penalties if audited.
