Lower Commuting Costs Act of 2026

The Lower Commuting Costs Act of 2026 creates a new tax deduction for individuals who pay for travel between their home and workplace or for business purposes that are not reimbursed by an employer. This deduction is classified as "above-the-line," meaning taxpayers can claim it without itemizing their deductions, which directly benefits workers who currently bear these costs out of pocket. The bill sets a maximum annual deduction limit of $4,080 for single filers and twice that amount for married couples filing jointly, with the cap adjusted for inflation in years after 2026. To simplify compliance, the law requires the Treasury Department to issue guidance that may reduce the documentation burden for standard commuting expenses, while also preventing taxpayers from claiming other tax benefits for the same travel costs.