workplace-rights

Commuter Benefit Tax Exclusion — Pay Transit and Parking Costs With Pre-Tax Dollars

Difficulty Easy Risk Low Applies To All Potential Savings Hundreds to over a thousand dollars per year depending on commuting costs and tax bracket Last Verified 2026-04-03

Commuter Benefit Tax Exclusion — Pay Transit and Parking Costs With Pre-Tax Dollars

What Is It?

Qualified transportation fringe benefits can let employees pay eligible commuting costs such as transit or parking with pre-tax dollars, subject to current limits.

What Most People Don’t Know

  • Parking and transit have specific monthly limits.
  • Availability depends on the employer offering the benefit.
  • This is different from a deduction on your own return.

Sources