Fringe Benefits

Research Report

Fringe Benefits

From The Encyclopedia of Taxation and Tax Policy


Fringe benefits are a variety of forms of compensation that are not taxed. For the purposes of tax policy, the most useful definition of fringe benefits is voluntary employer expenditures in noncash forms of compensation. This article outlines the history and efficiency effects of fringe benefits; explores whether these benefits should be taxed; and presents proposals for reforms of the tax treatment of fringe benefits.

Research Area: 
To reuse content from Urban Institute, visit, search for the publications, choose from a list of licenses, and complete the transaction.