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Published: Thu, Oct 8, 2026·1 min read

The 'RTO Tax': Workers Pay Nearly $7,000 Annually to Commute

⚡Executive Briefing & Staffing Impact
via fastcompany.com

The big picture: U.S. office workers spend an average of $6,736 annually on expenses related to commuting and working in the office, with over half reporting increased costs in the past year.

Why it matters: These significant out-of-pocket costs can impact employee retention, satisfaction, and influence preferences for remote or hybrid work models, affecting talent acquisition strategies.

Between the lines:

  • Commuting costs (transportation, gas) account for over 40% of the total, averaging $2,751 per year.
  • Food and coffee purchases add another $2,598 annually to workers' expenses.
  • Surprisingly, some high-cost-of-living cities like New York and San Francisco are relatively cheaper for office workers when local salaries are factored in.

Staffing & HR impact: Rising RTO costs could drive higher demand for remote roles, potentially increasing competition for in-office talent and impacting recruiter mobility. Employers may need to re-evaluate compensation and benefits to offset these worker expenses.

The bottom line: The financial burden of office work is a growing factor influencing employee decisions and employer talent strategies.

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fastcompany.com
Original Dispatch
Published: Thu, Oct 8, 2026
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The 'RTO Tax': Workers Pay Nearly $7,000 Annually to Commute — The Wire