SmartBenefits® is administered free by the Washington Metropolitan Area Transit Authority (WMATA), more commonly known as Metro, and is for the region’s employers who provide a direct fare benefit. SmartBenefits® is the best way to provide your employees with pre-tax transit fares, vanpool expenses, and parking at Metro stations. It is a win-win; employers save money on payroll taxes and employees do not pay taxes on the cost.
In 2025, the Internal Revenue Service (IRS) announced that employers can provide up to $325 in qualified transportation fringe benefits tax-free to employees using transit or qualified vanpools to get to and from work. This is an increase of $10 from the 2024 transit benefit amount.
SmartBenefits® is Metro’s IRS-compliant commuter benefits program where employers can fund the benefit tax-free, up to the IRS limit. Employers can fund transit fares, or employees can pay the fare themselves through a tax-free payroll deduction. A combination of the two funding methods can be used as well.
Signing up for the SmartBenefits® service is free for employers to administer, and the tax savings are undeniable. For more information, visit SmartBenefits® .
