Some employees will be able to contribute more to their commuter benefit accounts next year.
The IRS is increasing the monthly pretax commuter benefit limits for both parking and transit to $340 in 2026, up from $325 in 2025, the agency recently announced. That equates to an annual limit of $4,080 for each benefit, totaling $8,160 in pretax commuter benefits for the year.
The changes, taking effect on Jan. 1, apply to combined participant and employer contributions for eligible parking and transit expenses.
Here's a look at other recent benefits and compensation news and trends.
FSA Contribution Limit Rises to $3,400 in 2026
The IRS has increased the annual flexible spending account contribution limit to $3,400 for 2026, up from $3,300 in 2025 and $3,200 in 2024. This adjustment, tied to inflation through the Chained Consumer Price Index, reflects the reality that health care is becoming more expensive and underscores the need for ongoing benefits education.
With Tax Rules Changing, Will Companies Still Offer Free Food?
Employers that rely on office meals and snacks to keep workers happy may rethink the popular workplace perk due to changes that will take effect next year.
Beginning in 2026, businesses will no longer be permitted to write off expenses for onsite cafeterias or meals provided to employees working late. The restriction may also extend to typical office amenities, including snacks and coffee. Employer-provided meals will go from a 50% tax deduction to nothing starting next year — a change laid out in President Donald Trump’s tax and budget law.
Supreme Court's Tariff Cases Could Result in Tightened Belts
The tariff cases before the U.S. Supreme Court this term, which started Oct. 6, may result in heightened volatility in compensation, labor demand, and employee morale if the tariffs are upheld.
Military Families Brace for Missed Paychecks
Military families face financial strain as the government shutdown drags on, with service members at risk of missing pay if no budget deal is reached.
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