[Published: August 16, 2022; updated November 28, 2023]

Would you like to save up to 40% on out-of-pocket expenses for your commute? It’s easy to do with Stanford’s pre-tax payroll deduction program. Whether you take transit, drive and park, or both, this program could help you save.

How does the program work?

If you are a benefits-eligible Stanford employee, you can use pre-tax dollars to purchase parking, transit, and other eligible commute expenses through pre-tax payroll deduction. This means the amount deducted from your paycheck to purchase eligible commute expenses is not taxed as part of your income. The IRS allows up to *$300 per month for parking and up to *$300 per month for transit and other eligible commute expenses using pre-tax dollars.

• Pre-tax parking permits at Stanford: If you are a benefits-eligible employee, we automatically apply pre-tax payroll deduction as your payment method when you purchase an ‘A,’ ‘C,’ ‘C-SRWC,’ ‘Z,’ or ‘MC’ parking permit in our online ordering system.
• Pre-tax transit expenses: Eligible commuters can purchase transit, transit parking (such as Caltrain and BART parking), Clipper cash value, and Commuter Checks with pre-tax dollars through the Edenred Commuter Benefits portal.

What additional information is helpful to know?

• Unlike the annual open enrollment period for medical and life benefits, you may enroll or change your enrollment in the pre-tax program on a month-to-month basis.
• By law, all transit passes purchased with pre-tax deductions are non-refundable
• Transit and parking pre-tax purchases can only be used for your own commute.

*Effective January 1, 2024, pre-tax transit and parking benefits for eligible employees increases to $315 per month.