--- title: IRS Announces 2023 COLAs for Transportation Fringes, FSA Deferrals description: IRS announces 2023 COLAs for transportation fringes and FSAs. image: https://www.americanpayroll.org/images/default-source/demo-images/cars-test.jpg?sfvrsn=cf618129_0 --- [![soc-fb](https://blogs.payroll.org/hubfs/ct-23-assets/footer-icon_fb.svg "soc-fb")](https://www.facebook.com/American-Payroll-Associations-Chapter-Relations-877434285724525/) [![soc-in](https://blogs.payroll.org/hubfs/ct-23-assets/footer-icon_li.svg "soc-in")](http://www.linkedin.com/groups?about=&gid=1051077&trk=anet_ug_grppro) [![soc-tw](https://blogs.payroll.org/hubfs/ct-23-assets/footer-icon_tw.svg "soc-tw")](https://twitter.com/APAChapters?lang=en) - [Home](https://blogs.payroll.org/chapter-leaders) - [About](https://blogs.payroll.org/about) - [Connect](https://blogs.payroll.org/connect) - [Resources](https://blogs.payroll.org/resources) ![23-PayNewsNow-Horiz-Logo](https://blogs.payroll.org/hs-fs/hubfs/23-PayNewsNow-Horiz-Logo.png?width=1300&name=23-PayNewsNow-Horiz-Logo.png "23-PayNewsNow-Horiz-Logo") [![26 PayrollOrg®RGB-NoTag long](https://blogs.payroll.org/hs-fs/hubfs/26%20PayrollOrg%C2%AERGB-NoTag%20long.jpg?width=1300&name=26%20PayrollOrg%C2%AERGB-NoTag%20long.jpg "26 PayrollOrg®RGB-NoTag long")](https://payroll.org/) ![](https://blogs.payroll.org/hs-fs/hubfs/Jyme.png?width=35&name=Jyme.png) Custom URL No Widget: By [Jyme Mariani, Esq.](https://blogs.payroll.org/pay-news-now/author/jyme-mariani-esq) on Oct 19, 2022 2:05:03 PM # IRS Announces 2023 COLAs for Transportation Fringes, FSA Deferrals The IRS released cost-of-living-adjustments (COLAs) for 2023 reflecting any increases in excludable transportation fringes and the flexible spending arrangement (FSA) deferral limit, among other changes \[[**Rev. Proc. 2022-38**](https://www.americanpayroll.org/docs/default-source/irs-and-ssa-announcements/22k18-2023-COLAs.pdf), 10-18-22\]. **Transportation Fringes** For 2023, the amounts that may be excluded from gross income for employer-provided qualified transportation fringe benefits and qualified parking increase to $300 per month ($280 in 2022). **FSA Deferrals** For plan years beginning in 2023, the dollar limitation for voluntary employee salary reductions for contributions to health FSAs increases to $3,050 ($2,850 in 2022). For cafeteria plans that permit the carryover of unused amounts, the maximum carryover amount increases to $610 ($570 in 2022). **For More Information** Complete coverage of the announced changes will be in the November issue of [***Payroll Currently***](https://bookshelf.americanpayroll.org/payroll_currently_2022/). Also, see the APA Compliance Update, [**IRS Announces 2023 COLAs for Transportation Fringes**, **FSA Deferrals**, **Foreign Earned Income Inclusion**, **and More**](https://www.americanpayroll.org/compliance/compliance-updates/irs-announces-2023-colas-for-transportation-fringes-fsa-deferrals-foreign-earned-income-exclusion-and-more)**.** Compliance updates are emailed to APA members and are also available on the [**Compliance Updates**](https://www.americanpayroll.org/compliance/compliance-updates)webpage.  To learn more about federal and state laws, regulations, and information to keep your company's payroll operations in compliance, check out [**Payroll Source Plus**](https://ebiz.americanpayroll.org/ebusiness/ProductCatalog/Product.aspx?ID=6067)! --- *Jyme Mariani, Esq., is Managing Editor of* Payroll Currently *and Senior Manager of Payroll Information Resources for the APA.* ### Search ![payroll-logo-white](https://blogs.payroll.org/hs-fs/hubfs/payroll-logo-white.png?width=200&name=payroll-logo-white.png "payroll-logo-white") [Privacy Policy](http://www.americanpayroll.org/privacy/)     |     Acceptable Use ©[PayrollOrg](http://payroll.org) [![soc-fb](https://blogs.payroll.org/hubfs/ct-23-assets/footer-icon_fb.svg "soc-fb")](https://www.facebook.com/PayrollOrg) [![soc-in](https://blogs.payroll.org/hubfs/ct-23-assets/footer-icon_li.svg "soc-in")](https://www.linkedin.com/company/payroll-org/mycompany/) [![Twitter-X-White-Logo-PNG](https://blogs.payroll.org/hs-fs/hubfs/Twitter-X-White-Logo-PNG.png?width=20&height=19&name=Twitter-X-White-Logo-PNG.png)](https://twitter.com/PayNews)