A Transit and Parking Benefit Account lets eligible employees pay qualified work-commute expenses with pre-tax dollars. For the 2026 plan year, the monthly pre-tax contribution and reimbursement limit is $340 per commuter account, up from $325 in 2025.
2026 pre-tax limit
| Plan year | Monthly pre-tax contribution / reimbursement limit per commuter account |
|---|
| 2026 | $340 |
| 2025 | $325 |
The limit applies per commuter account, so a transit account and a parking account each have their own monthly limit.
What transit and parking expenses are covered
| Account type | What qualifies | Exclusions |
|---|
| Transit pass expenses | A pass, token, fare card or voucher for mass transportation to and from your place of employment. This can include train, bus, subway, vanpooling or ferry. | EZ Pass, CitiBike, and your dependent's transportation expenses. |
| Qualified parking | Parking at your regular place of employment, such as a parking garage in the city. Also includes parking your car at a location from which you commute to your regular place of employment, for example parking and riding the train. | Not specified in this article. |
When are transit and parking expenses eligible?
- Expenses are eligible for reimbursement if they are incurred or paid during a monthly period of coverage while your account is effective.
- If your account becomes effective on October 1, expenses for September are not eligible. However, a monthly pass for October that you purchased in September may be eligible.
- You cannot be reimbursed for expenses incurred after you terminate employment, even if funds remain in your account.
How to access funds in your account
- Pay with the CoAd FLEX card at the point of sale.
- Submit a manual claim through the CoAd Benefit Portal or the Mobile App.
Points to know about each method:
- For the debit card to work, the transit and parking credit card machines must be coded as transit or parking so the funds pull from the correct account.
- If a specific credit card machine does not accept your CoAd debit card, submit your receipts or statements along with a claim form directly to CoAd for reimbursement.
- Cash reimbursement for transit expenses is only permitted if passes or vouchers are not available and your CoAd debit card is not accepted at the kiosk.
- Manual reimbursements are processed daily, but must be submitted within six months of the expense being incurred.
Changing how much you contribute
You can change your transit and parking contribution on a monthly basis.
- Because these accounts are based on a monthly maximum, any contribution change must be made prior to the first payroll of the month.
- If you miss that cutoff, the effective date of the election change moves to the first day of the following month.
- Pre-tax contributions cannot exceed the monthly limit of $340 per commuter account for 2026. If your commuting costs are higher, you can add post-tax dollars to your CoAd debit card, provided your employer offers a post-tax commuter account.
When would I forfeit my commuter funds?
Money you set aside rolls over from month to month for as long as you are employed by your current employer.
Important: If you have funds in your account when you terminate employment, you may have a brief period to submit claims for expenses incurred prior to termination. After that window closes, all remaining funds are forfeited.
Frequently asked questions
What is the 2026 pre-tax limit for commuter benefits?
For the 2026 plan year, the monthly pre-tax contribution and reimbursement limit is $340 per commuter account. That is up from $325 per month for the 2025 plan year.
Are EZ Pass tolls or bike share memberships eligible for reimbursement?
No. EZ Pass, CitiBike, and your dependent's transportation expenses are excluded from reimbursement under the transit pass benefit. Eligible transit expenses are passes, tokens, fare cards, or vouchers for mass transportation to and from your place of employment, such as a train, bus, subway, vanpool, or ferry.
How long do I have to submit a manual commuter claim?
Manual claims must be submitted within six months of the expense being incurred. Manual reimbursements are processed daily.
Can I be reimbursed for a commuting expense from before my account was effective?
No. Transit and parking expenses are eligible only if they are incurred or paid during a monthly period of coverage while your account is effective, so if your account becomes effective on October 1, September expenses are not eligible. A monthly pass for October that you purchased in September may still be eligible.
Can I use my commuter account after I leave my job?
No. You cannot be reimbursed for expenses incurred after you terminate employment, even if funds remain in your account.
