2026 Commuter Benefits Pre-Tax Limits
Everything you need to know about this year's pre-tax commuter benefits limits.
Federal pre-tax commuter benefits
Commuter Benefits are tax-free fringe benefits, authorized by the Internal Revenue Code 132(f), that allow employees to pay for qualified commuting costs using pre-tax money. Each year, the IRS increases the tax free limits for commuter benefits.
The commuter benefits tax free limits for 2026 are $340/month for transit and $340/month for parking.
How do the savings work?
Commuter benefits employee savings
Commuter benefits can add up to some serious tax savings.
As an employee, you can save an average of $800 a year, or more when you set aside $340 a month to pay for your transit commuting expenses.
Commuter benefits apply to public transportation, vanpools, and qualified paid parking.