Commuter Benefits: How to Save $300/Month Pre-Tax

What are commuter benefits?

Commuter benefits allow you to set aside pre-tax money from your paycheck to pay for work-related transportation costs. The IRS allows up to $315/month for transit and $315/month for qualified parking in 2026 — a combined $7,560/year that can be sheltered from income taxes.

What qualifies

Transit (up to $315/month)

• Bus, subway, train, ferry, commuter rail passes
• Vanpool (must seat 6+ passengers including driver)
• Transit cards and monthly passes
• Rideshare apps specifically for commuting (Lyft/Uber don't qualify)

Parking (up to $315/month)

• Parking at or near your workplace
• Parking at a location from which you commute via transit
• Parking garages, lots, meters

How much does it actually save?

For someone in the 22% federal tax bracket who takes $315/month in transit benefits:

• Annual pre-tax transit: $3,780
• Federal tax savings (22%): $832
• FICA savings (7.65%): $289
• State tax savings (varies): $150–$300
• Total annual savings: approximately $1,271–$1,421

How to enroll

Commuter benefits are typically administered through a third-party benefits platform (WageWorks, Commuter, PayFlex, etc.). You elect an amount during open enrollment or often any time during the year. The money is deducted pre-tax and either loaded onto a transit card or reimbursed after you submit receipts.

Remote workers: what about you?

If you work fully remote, you generally don't qualify for commuter benefits since there's no commute. If you have a hybrid schedule — even one day a week in the office — you typically still qualify, though your elected amount should reflect your actual commuting frequency.