Tuition Reimbursement (Educational Assistance)
Tuition reimbursement is employer-paid education. Under a written educational assistance program, the employer can exclude a capped amount a year from your wages; job-related training can also qualify as a working condition benefit.
Definition from IRS Pub. 15-B.
2026 figures, with sources
| Figure | Value | Source |
|---|---|---|
| Annual exclusion under a written educational assistance plan | $5,250 | IRS Pub. 15-B, Educational Assistance |
| Inflation indexing | Indexed for taxable years beginning after 2026 | Rev. Proc. 2025-32, Section 2.09 |
What the IRS says
- Tuition, books and fees under a written educational assistance plan. An employer can exclude up to $5,250 a year of educational assistance from your wages. The part above $5,250 is wages unless it is a working condition benefit. The $5,250 exclusion was made permanent for payments after 2025 and is indexed for inflation for taxable years beginning after 2026. (IRS Pub. 15-B, Educational Assistance; Rev. Proc. 2025-32, Section 2.09)
- Job-related course, certification or conference paid by the employer. A working condition benefit is property or a service that would have been a deductible business expense if you paid for it yourself. The exclusion applies to the extent the training maintains or improves skills needed in your current job. A course that qualifies you for a new trade or business does not fit. (IRS Pub. 15-B, Working Condition Benefits)
Run your own numbers
Employer programs we have sourced
Each row is what the employer's own page states. Only 3 of these 10 publish a dollar cap; a cap above $5,250 is taxable above that line unless it is a working condition benefit.
| Employer | Program | Annual cap stated |
|---|---|---|
| Walmart / Sam's Club | Live Better U | Not stated |
| FedEx | Tuition Reimbursement | $5,250 |
| Bank of America | Tuition assistance | $7,500 |
| Kroger | Continuing education program | Not stated |
| Target | Dream to Be | Not stated |
| Starbucks | Starbucks College Achievement Plan | Not stated |
| Amazon | Career Choice | Not stated |
| CVS Health | Tuition assistance | Not stated |
| Verizon | Tuition assistance | $5,250 |
| Chipotle | Cultivate Education debt-free degrees | Not stated |
Also in the database, with too few published terms for a page of its own: Lowe's. Filter every row and download the CSV
Guides and products
Related benefits
Sources and date checked
Every number and rule on this page comes from the pages below, read on October 14, 2026. If a source changes, this page can be out of date until it is rechecked.
- IRS Publication 15-B (2026), Employer's Tax Guide to Fringe Benefits
Definition. Annual exclusion under a written educational assistance plan: $5,250. Educational Assistance. Working Condition Benefits.
- Rev. Proc. 2025-32 (2026 inflation adjustments: tax brackets, standard deduction, section 125 and 132(f))
Inflation indexing: Indexed for taxable years beginning after 2026. Section 2.09.
- Live Better U: Walmart's Education & Career Benefits (corporate.walmart.com)
Walmart / Sam's Club: Live Better U.
- Hiring and Development (careers.fedex.com)
FedEx: Tuition Reimbursement.
- Benefits (careers.bankofamerica.com)
Bank of America: Tuition assistance.
- Kroger to Bring More Resources to 700,000+ Associates (ir.kroger.com, 2023 press release)
Kroger: Continuing education program.
- Dream to Be fact sheet, updated Sep 29, 2025 (corporate.target.com)
Target: Dream to Be.
- Education (careers.starbucks.com)
Starbucks: Starbucks College Achievement Plan.
- Amazon Career Choice FAQ (aboutamazon.com)
Amazon: Career Choice.
- Benefits (jobs.cvshealth.com)
CVS Health: Tuition assistance.
- Benefits (mycareer.verizon.com)
Verizon: Tuition assistance.
- Chipotle Debuts Debt-Free Degrees For All Employees (newsroom.chipotle.com, Oct 15, 2019)
Chipotle: Cultivate Education debt-free degrees.
Not tax advice. This page is general information built from IRS publications, not advice for your situation. Plan rules, state law and your own facts can change the answer. Confirm with your plan administrator or a tax professional before you act.