Commuting to work? A $340-a-month pre-tax benefit could reduce your 2026 taxes, and your employer may already offer it to you right now

The commuter benefit limit rises to $340 a month for 2026: The monthly cap on the qualified transportation fringe benefit goes up $15 in 2026. The IRS announced the change with its yearly inflation adjustments, which cover dozens of tax provisions. Some of those provisions were changed by the One Big Beautiful Bill Act, and most apply to tax year 2026.

Your commute can lower your taxable pay

The $340 cap adds up to $4,080 a year. That’s how much commuting cost you can pay for before income tax is calculated.

What you save depends on your bracket. Multiply $4,080 by your rate. At 22%, the reduction is roughly $898 a year. At 12%, it’s about $490.


Only employers can offer the benefit. Ask payroll or HR whether yours does before you plan around it.

The standard deduction gets a modest increase

For 2026, the standard deduction is $16,100 for single filers and $32,200 for married couples filing jointly. The new law had set the 2025 figures at $15,750 and $31,500, so the increases are $350 and $700.

Most people don’t itemize, so this change reaches the most filers.

Tax rates didn’t change. The income thresholds did, rising with inflation. The 22% rate now starts above $50,400 for single filers, and the 37% rate applies above $640,600.

Health accounts and credits move up

A health flexible spending account can now take $3,400, which is $100 more than last year. Plans that allow carryovers can let you keep up to $680 of unused money, up $20.

The adoption credit is $17,670, up from $17,280. Of that, $5,120 is refundable, meaning it can be paid out even if you owe no tax.

The earned income tax credit tops out at $8,231 for filers with three or more children. It was $8,046.

The alternative minimum tax exemption is $90,100 for individuals. It begins to phase out at $500,000 of income.

The estate tax exclusion is $15 million for people who die in 2026, up from $13.99 million in 2025.

The annual gift exclusion is the exception. It stays at $19,000.

Personal exemptions and itemized deductions are no longer adjusted each year, so they sit outside this round of increases.

To see where you land, compare your income with the new bracket thresholds and ask your employer which of these benefits it offers.