U.S. · 2026 payroll
Commuter benefits limit 2026 calculator.
Enter your monthly transit and parking costs to see how much qualifies for the 2026 pre-tax commuter benefit.
For 2026 you can exclude up to $340 a month for transit passes and vanpool, and a separate $340 a month for qualified parking. Anything above is taxable wages.
Your numbers
Result
How this is calculated
The monthly exclusion under 26 U.S.C. 132(f) is $340 for transit and commuter highway vehicle benefits combined and $340 for qualified parking (Rev. Proc. 2025-32 section 4.16; Publication 15-B (2026)). The two limits are separate, so a worker with both can exclude up to $680. The amount over the limit is added to wages. Elected through a salary reduction arrangement, the excluded amount also avoids Social Security and Medicare tax, which is why the savings estimate adds 7.65% to your income tax rate.
Worked example
$420 monthly transit pass, 22% bracket. $340 is excluded and $80 a month ($960 a year) is taxable. The excluded $4,080 a year saves about $1,209.72 in federal income tax and payroll tax.
$150 transit and $300 parking, 24% bracket. Both are under their own $340 limit, so all $450 a month is excluded: $450 a month, saving about $1,709.10 a year.
What changed
The limit rose $15 from $325 in 2025. The bicycle commuting reimbursement exclusion has been permanently eliminated for tax years after 2025 under P.L. 119-21, so a bike stipend is now taxable wages. Employers can no longer deduct the cost of these benefits, but employees can still exclude them.
Sources
Primary sources opened and checked on October 26, 2026. Figures are for tax year 2026 unless a source says otherwise.
Common mix-ups
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Often assumedCommuter benefits are capped at $340 a month in total, transit and parking together.
What the source saysPublication 15-B (2026) applies the limits separately: $340 per month for combined commuter highway vehicle transportation and transit passes, and another $340 per month for qualified parking. [1]
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Often assumedBicycle commuting reimbursements are still tax-free up to a monthly amount.
What the source saysPublication 15-B (2026) says P.L. 119-21 permanently eliminates the exclusion of qualified bicycle commuting reimbursements for tax years beginning after 2025. [1]
Checked against these sources on .
Frequently asked questions
What is the commuter benefits limit for 2026?
$340 per month for transit passes and commuter highway vehicles, and $340 per month for qualified parking.
Can I use both the transit and parking limit?
Yes. They are separate limits, so you can exclude up to $340 of each in the same month.
What happens to the amount over $340?
It is included in your wages and taxed. It cannot be excluded as a de minimis fringe benefit.
Can my employer reimburse my transit pass in cash?
Only if a voucher or similar item you can exchange only for a transit pass is not readily available for the employer to give you directly.
Does the bike commuting benefit still exist?
No. The qualified bicycle commuting reimbursement exclusion is eliminated for tax years beginning after 2025.
Not tax advice
This page is general information, not tax, legal or financial advice. Tax rules change and your facts may differ. Confirm anything that matters with the IRS, a CPA or an enrolled agent before you act. Everything runs in your browser; nothing you enter is sent anywhere.