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. The monthly pre-tax limits are reviewed each year by the IRS.


The commuter benefits tax free limits for 2025 are $325/month for transit and $325/month for parking.

Calculate Your Savings


Commuter Benefits Employee Savings


Commuter benefits can add up to some serious tax savings.


As an employee, you can save over $800 a year when you set aside $325 a month to pay for your transit commuting expenses.


Commuter benefits apply to public transportation and qualified parking.


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

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 $325/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:

*Estimated employee savings are for informational purposes only, and based on the 2025 tax year. Individual savings may vary based upon income, individual tax rates, state of residence and other factors. Please consult your tax advisor.