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Considering commuter benefits? 5 things you need to know

2 min read

Last Updated

June 26, 2025

Commuter benefits let members use tax-free money to pay for eligible parking and transit expenses. As you consider whether to use commuter benefits this year, here are five things you need to know.

#1 Payment options vary depending on your organization

There are generally two ways to fund your commuter benefit account. The first is through pre-tax payroll contributions, where money is deducted from your paycheck before taxes. The second is through a Commuter Card that you can use to pay for eligible expenses directly. Check with your employer to see which payment options are available to you.

#2 Eligible expenses vary based on your organization

While the IRS sets the overall rules, your employer determines which types of expenses are eligible under your specific commuter benefit plan. Common eligible expenses include public transit passes, vanpool fees, and qualified parking at or near your workplace or a location from which you commute. Some plans may cover all of these, while others may only cover certain types.

#3 You can start, stop, or change contributions at any time

Unlike some other benefit accounts, commuter benefits don't require you to wait for open enrollment to make changes. You can adjust your monthly contribution amount whenever your circumstances change — whether you start a new commute, switch transit methods, or simply want to increase or decrease the amount you set aside.

#4 There's no annual 'use-it-or-lose-it' rule

Good news: commuter benefit funds roll over from month to month and year to year. There is no deadline by which you must spend the money, so you won't lose your balance at the end of the plan year. This makes it easier to build up funds for larger expenses or save for months when your commuting costs may be higher.

#5 Commuter benefits have spending limits

The IRS sets monthly contribution limits for commuter benefits. For the latest limits on transit and parking, visit this page. These limits apply per person, per month, for both transit and qualified parking benefits separately.

For more details on contribution limits or to learn more about how commuter benefits work, check out this page or visit the Help Center. You can also explore our on-demand webinars for additional insights and guidance.