Recent Fringe Benefit Changes
- May 6
- 1 min read
From Bob Jennings at TaxSpeaker. Check out TaxSpeaker at taxspeaker.com
Recent Fringe Benefit Changes
The business mileage rate is 72.5 cents per mile for 2026.
The qualified transit pass exclusion is $340 per month for 2026.
The exclusion for commuter highway vehicle transportation and qualified parking is $340 per month for 2026
Health flexible spending arrangement (FSA): For plan years beginning after December 31, 2025, a cafeteria plan may not allow an employee to request salary reduction contributions for a health FSA in excess of $3,400 and the maximum unused carryover is limited to $680 for 2026. Note that this is in addition to the unlimited §125 health insurance deduction.
Adoption assistance programs are limited to $17,670 for 2026.
Qualified small employer health reimbursement arrangement (QSEHRA) limits are $6,450 single or $13,100 for family coverage for 2026.
Business Related Meals | 100% | 50% 2026 | Non- Deductible |
Quiet business meals |
| X |
|
Occasional employee fringe benefit meals (Cocktail parties, picnics, holidays) | X |
|
|
Meals for public as cost of goods sold | X |
|
|
Meals for public as advertising | X |
|
|
Meals overnight for business** |
| X |
|
**Per diem rates for meals |
| X |
|
Meals with business groups |
| X |
|
Meals before and after entertainment |
| X |
|
Meals for employer convenience |
|
| X |
Business Related Entertainment |
|
|
|
Sporting, hunting, fishing |
|
| X |
Plays, theatres, shows, concerts |
|
| X |
Games of any sport |
|
| X |
Tickets to clients for any of above |
|
| X |
Dues: Country clubs, social clubs, athletic clubs or organizations |
|
| X |
Skybox, sporting or entertainment facility fees or leases |
|
| X |
Business meals separately stated as any above entertainment |
| X |
|
Entertainment directly related to taxpayers line of business (sporting goods; salesperson going to ballgame) | X |
|
|
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