Employer reimbursements for bicycle commuting costs, such as purchases, repairs and storage, remain taxable income to employees. That’s because the suspension of the $20-per-month tax-free benefit was made permanent by the One Big Beautiful Bill Act in 2025. Although this exclusion is gone, qualified transportation fringe benefits such as parking, mass transit passes and van pooling are still tax-free to employees (up to $340 per month for 2026). However, these benefits generally aren’t deductible by employers. Have questions? We’re here to help.
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