Commuter Benefits Tax Free Limits

Everything you need to know about the 2025 tax free commuter benefits limits.

2025 Tax Free Commuter Benefits Limits

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 2025 are $325/month for transit and $325/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 $325 a month to pay for your transit commuting expenses.

Commuter benefits apply to public transportation, vanpools, and qualified paid parking.

Check out our calculator to see how much you could save.

Yearly Savings

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With
the Benefit
Without
the Benefit
Gross annual pay
Pre-tax commuting expenses The amount deducted from your paycheck before taxes. The current IRS pre-tax limit is $315/month. $0
Adjusted gross annual pay
Commuting expenses after taxes The amount you will pay after taxes are deducted from your paycheck.
Final Annual Pay:

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