freee HR & Payroll Now Supports Calculations for Increased Non-Taxable Commuting Allowance Limits Applicable from April 2026
freee HR & Payroll now supports tax reforms effective April 1, 2026, which include increased non-taxable commuting allowance limits for employees using cars or parking. The system automatically adjusts calculations based on new variable limits tied to commuting distance and additional parking allowances, simplifying compliance and reducing administrative burden for users without requiring special settings.
📋 Article Processing Timeline
- 📰 Published: April 3, 2026 at 22:00
- 🔍 Collected: April 3, 2026 at 17:10
- 🤖 AI Analyzed: April 17, 2026 at 11:52 (330h 41m after Collected)
freee HR & Payroll, provided by freee K.K. (Headquarters: Shinagawa-ku, Tokyo; CEO: Daisuke Sasaki; hereinafter "freee"), announces its compliance with the tax reforms enacted on April 1, 2026, which include an increase in the non-taxable limit for commuting allowances for employees who use cars or parking lots for their commute.
This revision applies to commuting allowances payable on or after April 1, 2026.
With this revision, the conventional uniform non-taxable limit has been reviewed, and a new standard has been introduced where the limit varies depending on the commuting distance. Furthermore, calculation requirements have been significantly expanded, allowing for an additional monthly maximum of 5,000 yen for parking usage, etc. As a result, manual calculation of commuting allowances will become more complex than before, leading to an anticipated increase in administrative burden. In light of this, freee HR & Payroll has responded to the tax reform, including the increase in the non-taxable limit for commuting allowances. Thanks to this update, users will not need to make any special setting changes, and commuting allowances will be calculated based on the revised non-taxable limit starting from the payroll calculation in April 2026. The system will automatically determine and calculate the non-taxable limit based on the new revised standards, enabling smooth payroll operations in compliance with the law.
Additionally, commuting allowances paid to employees using parking lots, etc., can be immediately handled from the effective date by utilizing existing features standardly included in freee HR & Payroll. Specific operating procedures are available on the help page to assist users with the practical implementation of this potentially confusing system, including cases where the allowance amount exceeds the non-taxable upper limit (5,000 yen per month).
Moving forward, freee will continue to thoroughly and promptly adapt its products to tax reforms, striving to provide features that respond to legal changes, along with easy-to-understand operating methods, so that users can concentrate on their core business.
National Tax Agency: Revision of the non-taxable limit for commuting allowances
https://www.nta.go.jp/users/gensen/2026tsukin/index.htm
Help page regarding this response
https://support.freee.co.jp/hc/ja/articles/55964097283865
■ About freee HR & Payroll
"freee HR & Payroll" is a product that automates attendance management, payroll calculation, year-end adjustments, and labor procedures in an integrated manner.
By linking consecutive tasks and eliminating transcriptions and manual work, errors and effort can be significantly reduced.
In addition, it is automatically updated in case of legal revisions, ensuring operation in compliance with the latest laws and regulations at all times.
■ freee K.K. Overview
Company Name: freee K.K.
Representative: CEO Daisuke Sasaki
Established: July 9, 2012
Location: Art Village Osaki Central Tower 21F, 1-2-2 Osaki, Shinagawa-ku, Tokyo
＜Back office basic knowledge useful for managers to staff＞https://www.freee.co.jp/kb/
＜Latest job listings for freee K.K.＞：https://jobs.freee.co.jp/