Understanding Pre-Tax and Post-Tax Commuter Benefits
Commuter benefits are employer-sponsored programs that help employees save money on work-related transportation costs. Through IRS Code Section 132(f), employees can use pre-tax dollars to pay for transit, parking, and vanpool expenses—reducing taxable income and increasing take-home pay.
Book a Demo →Understanding the difference is key to maximizing employee value
| Feature | Pre-Tax Benefits | Post-Tax Benefits |
|---|---|---|
| Funded By | Employee (payroll deduction) | Employer |
| 2025 Limits | $325/month transit $325/month parking |
No IRS limits |
| Tax Treatment | Reduces taxable income | Taxable to employee |
| Covers | Transit passes, vanpools, parking | Gas, tolls, rideshare, bikes |
| IRS Code | Section 132(f) | Discretionary benefit |
Pre-tax commuter benefits allow employees to set aside money from their paycheck before federal, state, and local taxes are applied. This reduces taxable income, resulting in immediate tax savings for both employees and employers.
An employee earning $75,000/year who contributes $325/month for transit saves approximately:
Total annual savings: ~$1,300+
Most providers force you to choose between pre-tax OR post-tax benefits. Fleet enables you to offer both in a single, seamless platform—and we handle all the complexity.
Employees set aside up to $325/month pre-tax for transit and $325/month for parking through standard payroll deductions.
Employers add a monthly commuter subsidy that employees can use for ANY mobility option—transit, parking, gas, tolls, rideshare, bikes, and more.
One card, one app, automatic tax categorization. We handle all the compliance, reporting, and administration.
✅ Result: True flexibility that meets every employee where they are. Use for parking, occasional Uber rides on rainy days, and bike-share for nice weather.
You set the policy. We handle everything else.
Fleet makes it easy to offer comprehensive, equitable commuter support—without the administrative burden.
Book a Free Demo →See the platform in action and get a customized proposal for your company
