Can I use pretax for parking and transit in the same month?
Yes. Transit and parking are two separate pretax categories under the federal commuter benefit rule (§132(f)), each with its own monthly cap. For 2026, you can elect up to $340 a month for transit or vanpool and another $340 a month for qualified parking. That is up to $680 a month pretax.
How the limits work
The transit/vanpool limit is set by Rev. Proc. 2025-32 at $340/month for 2026. The qualified parking limit is also $340/month for 2026. The two are independent: using parking does not reduce your transit cap, and vice versa.
A common scenario
You drive to a park-and-ride lot ($80/month), take the train into the city ($150/month for a monthly pass), then walk to the hospital where you work. Both are eligible. You elect $80 for parking and $150 for transit, or $230 a month pretax.
At a 25% combined rate, that's about $58/month or $696/year kept.
Another common scenario
You manage a restaurant and drive to one of two locations. On location-A days, you park in a garage ($200/month). On location-B days, you take transit ($120/month). Both are eligible, so you elect both.
What you can't do
- Elect more than $340/month in either category.
- Use parking dollars to pay for transit, or vice versa. The IRS treats them as separate buckets.
- Use either bucket for ineligible purchases like Uber, Lyft (except true vanpool services), tolls, gas, or non-commute parking.
How Alice handles it
You set your transit and parking elections separately at enrollment and can change them with pay-period flexibility (unlike traditional plans). Alice Card knows which bucket to draw from based on merchant category. You save on taxes on every eligible purchase in either category.
Need help?
Text or call (888) 431-4355 or email support@thisisalice.com.
For the full list of eligible commuter expenses, see What parking and transit expenses are eligible? Eligibility is set by IRC §132(f).
Figures shown are for the 2026 plan year and are set by the IRS. Limits are indexed annually by the IRS.
Savings shown or implied — including any reference to "cash back" or take-home pay — are illustrative. Actual savings depend on your tax rate, benefit elections, and eligible spending each pay period. "Cash back" in Alice's materials refers to the federal, state, and FICA payroll taxes you don't pay on eligible commuter spending. It is income tax you keep, not a cash payment from Alice, your employer, or any third party. Alice does not provide cash back, rebates, or any direct financial benefit in connection with the Program. Alice does not provide tax, legal, or financial advice. Consult your own tax preparer, lawyer, or financial advisor for guidance specific to your situation.
Pretax Hero Visa Commercial Card is powered by Stripe and issued by Celtic Bank. Program funds held at Fifth Third Bank, N.A. (Member FDIC). Use of card and program is subject to the cardholder terms and related agreements presented at issuance.