Changes in fare schemes or service provision as well as changes in travelers’ behavior affect the distribution of public transport subsidies. This study proposes a method where service operation costs are distributed on individual trips to determine each origin-destination pairs service operation cost. In combination with travel survey data on socioeconomic composition and fare scheme data, it is then possible to assess the distribution of subsidies and their dynamics. In the case of Stockholm public transport, we present socioeconomic distribution of subsidies with regard to age, income, sex, and occupation. We find that the existing subsidies are mildly regressive, that a change to distance dependent fares would yield a more regressive distribution and that targeted reductions in fares for students, children and elderly increase progressivity. The presented methodology provides policymakers with a tool to accurately analyze distributional effects in subsidies of policy changes concerning both fare policy and service supply policy.