Manx students will have to pay an extra 10p per journey starting today.
School bus fares will now be 40p a journey for pupils using Go School smart travel cards.
This is to generate extra revenue to support operating costs for the school service.
The Isle of Man Transport operations are aiming to make savings of £1 million after the target was set in this year's annual Budget.
Standard fares will continue for anyone who does not pay for journeys in advance using a Go School card.