Employees who use commuter benefits will see bigger savings in 2026. The pre-tax contribution limit goes up every year to accommodate for inflation and changes in the economy, allowing employees to continue to make a tangible difference on their budgets every year.
For 2026, the IRS has raised that pre-tax fund limit to $340 per month, (up from $325 in 2025), starting for all plans that begin on January 1st, 2026. That's $15 extra each month – $180 annually – that employees can dedicate to the cost of taking the subway, bus, train, rideshares, trolleys, light rails, water taxis, ferries and traditional vanpools – even qualified parking.
If you’ve been thinking about adding a commuter benefits program – now is the perfect time!
$340 in pre-tax dollars puts money back in your employees’ pockets
Let’s face it, inflation is rough and getting worse. January 2021 saw a rate of 1.4% that – after a tumultuous period through the worst of the coronavirus pandemic – currently sits at 3%. This isn't the time to talk about the knock-on phenomena like "shrinkflation", but the combination of all factors has people consciously feeling the pressure.
According to a AMFM Healthcare survey, 87% of American adults are feeling anxious about finances in 2025, and 79% say that anxiety has increased throughout the year. With that much anxiety, $15/month might not look like much, but it's nearly $200 employees can save (compared to 2025) across the calendar year for other expenses. The more your employees save, the more they can spend on the essentials they need to live – and even have enough leftover to treat themselves.
So how much exactly would your employees pay? If your employees were to allocate a commuter benefits program, they could save an average of $800 per year.
Your company would save too
Here is some awesome news. Not only are your employees saving money, but so are you.
Your company can save 7.65% on payroll taxes and an average of $40 per month for each participating employee when you add a commuter benefits program. A company with 50 employees can save over $24,000 annually.
Those are some pretty good numbers.
How to get started
Now, employees can’t claim commuter benefits on their own. You, the employer, have to grant them that right by creating a commuter benefits program. As you’ve just seen, with commuter benefits in play: Everyone saves, and everyone wins.
Take advantage of the rise in monthly benefits, by starting your own program today! Some cities in the U.S. have mandates requiring organizations at certain head counts to provide commuter benefits to their people, so be sure to check if you might be subject. Here at Edenred, we can help you get started simply and quickly. In fact, we’ve helped over 10,000 companies (of all sizes) already do that!
Learn more today!
