Pre-Tax Commuter Benefits FAQs

Welcome to Fleet's Pre-Tax Commuter Benefits program! This benefit allows you to use pre-tax dollars to pay for eligible commuting expenses, helping you save hundreds—or even thousands—of dollars every year.

How it works: Set aside money from your paycheck before taxes are applied, then use your Fleet Card to pay for qualifying transit and parking expenses. It's that simple!

Average savings: Fleet users save an average of $1,500 per year, with potential savings of up to $2,500 annually.

Below you'll find answers to the most common questions about the program, how to get started, and how to make the most of your commuter benefits.

The IRS allows employers to offer full-time employees the option to use pre-tax income to cover certain transportation costs between an employee's home and place of work. These commuter benefits are regulated by the provisions in Internal Revenue Code Section 132(f).

With Fleet, you'll have the option to set aside a certain amount from your paycheck every month to spend on eligible commuting costs. You can then access the funds you've set aside simply by paying for the eligible commuting costs using your Fleet Card.

Pre-tax spending simply means spending you can do before taxes are applied to your paycheck. The IRS allows various categories of expenses that can count toward pre-tax spending, including certain commuting costs. The more you spend in pre-tax spending, the less you pay in social security, medicare, and local taxes.

Fleet connects to your payroll to make sure you don't pay taxes on the eligible commuting expenses you put on your Fleet Card. You pay less in income taxes, and keep more of the money you earn every pay period.

Additionally, you can access special discounts and corporate pricing on many mobility services when you pay with your Fleet Card. When your employer activates any competitions or rewards, you can earn money by making smart commuting choices!

With pre-tax spending, Fleet users see an average of $1,500 added to their paychecks every year, but you can save up to $2,500. The amount you save depends on how much you set aside for commuting costs every month.

Preferential pricing on mobility services and rewards programs, also available through Fleet, can save commuters even more!

$100 spent pre-tax simply means $100 from your paycheck is not taxed. Most employees in the US see their paychecks taxed at about 35%. So, by spending $100 pre-tax on eligible commuting costs, you will save the $35 you would otherwise have paid in taxes like FICA and Social Security.

Pre-tax spending allows you to pay for certain expenses before taxes are applied. In effect, the amount of your paycheck that taxes are applied to becomes lower, and your take-home pay increases. It's a win-win!

Mass-transit (train, subway, bus, ferry, Vanpool) Parking (parking lots, meters, garages, parking space provided by your employer)

Only transportation on the modes above between an employee's home and work place is eligible.

Fleet issues all participating employees a Fleet Card to pay for qualified commuting expenses. With a pre-tax program activated, employees will be able to pay for eligible transit and parking commuter expenses using their Fleet Cards. The funds employees allocate for pre-tax spending will be added to this card, and it can be used anywhere a Visa card is accepted.

Public transit stations may sell items like newspapers or coffee, but these are unqualified expenses. Other unqualified expenses include:

For 2025, the IRS has set the maximum monthly allocation amount at $325 for qualified parking expenses and $325 for qualified mass transit.

📢 2026 Update: The IRS limit increases to $340 per month for both qualified parking expenses and qualified mass transit starting in 2026.

Regardless of the total balance in your account, you can spend a maximum of $325 per month on qualified parking expenses and a maximum of $325 per month on qualified mass transit in 2025.

📢 2026 Update: The IRS limit increases to $340 per month for both qualified parking expenses and qualified mass transit starting in 2026.

You can set your monthly pre-tax spending allocation via the Fleet mobile app or employee web app:

From the home screen in the mobile app or employee web app, click on "tax savings program." This will take you to a screen showing all budgets available to you that are eligible for tax savings.

Scroll down and click "manage" and follow the allocation flow.

Every month, we will apply the same allocation unless you change it. You can also pause allocations from the same screen.

Regardless of the total balance in your account, you can allocate a maximum of $325 per month for qualified parking expenses and a maximum of $325 per month for qualified mass transit in 2025.

📢 2026 Update: The IRS limit increases to $340 per month for both qualified parking expenses and qualified mass transit starting in 2026.

You can change your commuter benefit contribution at any time once your account is active.

From the home screen in the mobile app or employee web app, click on "tax savings program." This will take you to a screen showing all budgets available to you that are eligible for tax savings.

Scroll down and click "manage" and follow the allocation flow.

Enter the amount you would like to set aside.

Fleet cards are programmed to be use only at authorized vendors. If you need to make a purchase at an unauthorized transit or parking vendor, following these steps to get reimbursed:

Funds roll over each month and accumulate on your Fleet Card, but you can only spend up to the IRS maximum each month ($325 in 2025 for qualified parking expenses and $325 for 2025 for qualified mass transit), even if you have more than that on your card.

📢 2026 Update: The IRS limit increases to $340 per month for both qualified parking expenses and qualified mass transit starting in 2026.

Commuter benefits are terminated on an employee's last day of employment. Contact your HR team for your company's specific policy.

Simply use your Fleet card as payment method to purchase eligible transit fares or transit passes, or to pay for eligible parking expenses. See card-related FAQs for information on adding the Fleet card to your virtual wallet or how to get a physical card, if mobile pay is not available where you would like to purchase mobility services.

If you have questions not answered here, please contact our support team at support@movewithfleet.com or reach out to your HR department for company-specific policies.