Updated October 28, 2026. Quick answer: The IRS has not yet announced the 2027 monthly limit for the qualified transportation fringe, the employer commuter benefit for transit passes, commuter vans and parking. For 2026 it is $340 a month for transit and commuter vehicles combined and $340 a month for parking, per Rev. Proc. 2025-32. This page updates the day the IRS publishes the 2027 amounts.
More on the 2026 tax figures: the 2026 commuter benefit limit.
What is not yet announced
As of October 28, 2026 the IRS has not published the Revenue Procedure that sets the 2027 inflation-adjusted amounts; the 2026 version was Rev. Proc. 2025-32. This page states only the 2026 figure, as a 2026 figure, and changes when the IRS publishes the 2027 Revenue Procedure.
The 2026 limits
| Year | Transit pass or commuter highway vehicle, per month | Qualified parking, per month | Source |
|---|---|---|---|
| 2026 | $340 | $340 | Rev. Proc. 2025-32, section 4, item .16 |
| 2027 | not yet announced | not yet announced | Awaiting the 2027 Revenue Procedure |
| Amounts printed in the statute (2024 edition) | $175 | $175 | 26 U.S.C. 132(f)(2) |
The IRS wrote them in one passage: “For taxable years beginning in 2026, the monthly limitation under § 132(f)(2)(A) regarding the aggregate fringe benefit exclusion amount for transportation in a commuter highway vehicle and any transit pass is $340.” “The monthly limitation under § 132(f)(2)(B) regarding the fringe benefit exclusion amount for qualified parking is $340.”
What the statute says
Section 132(f)(2) caps the exclusion with dollar amounts written in the statute: “$175 per month in the case of the aggregate of the benefits described in subparagraphs (A) and (B) of paragraph (1),” and “$175 per month in the case of qualified parking,” Those are the base amounts, and the IRS raises them each year to the $340 figures above.
How the indexing works
Section 132(f)(6) says the amounts are increased by “the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins” with 1998 as the comparison year, and the increase is rounded: “If any increase determined under subparagraph (A) is not a multiple of $5, such increase shall be rounded to the next lowest multiple of $5.” The 2027 limits will come from the same formula, in the Revenue Procedure the IRS has not yet published.
Common mistakes
- Treating transit and parking as one combined limit. The two have separate $340 limits for 2026.
- Using $175, the base amount printed in the statute. The inflation-adjusted 2026 limit is $340.
- Using a 2027 number from a vendor. Until the IRS publishes the 2027 Revenue Procedure there is none.
Related: the 2027 dependent care FSA limit, the 2027 FSA limit, the 2027 HSA limits, and the 2027 tax numbers.
Find the right next step for your situation
About how much do you have invested? Pick the range that fits; your next step appears immediately below.
Talk to an advisor about tax planning
For U.S. investors with $250,000 or more in investable assets. WiserAdvisor is an independent service matching you with 2 to 3 vetted advisers. Its form asks for your ZIP code and answers to a few questions; a match is not guaranteed.
Free to request, with no obligation to hire. By submitting, you consent to calls, texts and emails from WiserAdvisor and up to three advisers. Advisers pay for introductions.
Clear Money Guide may earn a referral payment for a qualifying completed form. An introduction is not a Clear Money Guide recommendation.
Opens on WiserAdvisor’s site in a new tab.
Explore advisor help with tax planning
Price the destination before you decide. The matching service below introduces you to advisers who pay to meet you.
Before you start, what actually happens. The form is run by Kapitalwise, our advisor-matching partner. Kapitalwise sends your details to advisers who pay for the introduction, so expect calls and texts. Clear Money Guide may earn a referral payment for a qualifying submitted form, whether or not you ever hire anyone. This is free to you and there is no obligation to hire anyone.
The Kapitalwise form opens here; you stay on this page.
What happens when you press the button
It asks about nine questions: age, investable assets, location; then your name, email and phone number, and verifies the phone by text. Nothing loads and nothing reaches Kapitalwise until you press the button.
Prefer flat-fee or hourly pricing instead? Compare ranges here.
Answer againSources
- Internal Revenue Service, Rev. Proc. 2025-32, tax year 2026 inflation-adjusted amounts, as modified by the One, Big, Beautiful Bill Act: www.irs.gov
- 26 U.S.C. 132, Certain fringe benefits (U.S. Code, 2024 edition, U.S. Government Publishing Office): www.govinfo.gov
Read from the primary documents linked above on October 28, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer or the IRS itself is the right place to confirm anything consequential.