Updated October 29, 2026. Quick answer: The monthly limit for the qualified transportation fringe, the employer commuter benefit for transit passes, commuter vans and parking, is $340 for 2026. That is $340 a month for transit and commuter vehicles combined and a separate $340 a month for parking, per Rev. Proc. 2025-32. The 2027 version has its own page, the commuter benefit limit for 2027.
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 |
| 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.”
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.
- Mixing it up with the dependent care or health account limits. Those are separate caps with their own pages.
Related: the 2026 FSA limit, the 2026 HSA limits, the 2026 tax brackets, and the commuter benefit limit for 2027.
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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 29, 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.