Lower Commuting Costs Act of 2026

Tax break for commuting costs

You would be able to deduct unreimbursed commuting and work-related travel costs on your federal return. The deduction would be above the line, so you would not need to itemize. The cap would be $4,080 per year for a single filer and $8,160 for joint filers for amounts paid or incurred after December 31, 2026. Starting for tax years after 2026, the $4,080 base would be adjusted for inflation using the tax code's COLA formula (with 2025 substituted in the formula) and increases not a multiple of $10 would be rounded to the nearest $10. The Treasury Secretary would be able to issue rules and a documentation safe harbor, and you could not also take another tax credit or deduction for the same expenses.