Commuter Allowance 2025 and Tax Declaration in Germany

The daily commute is not a private pleasure – and the state knows it. That’s why you have the option to claim the trips between your home and workplace on your tax return. In this article, you will get an overview of what is considered and what so-called travel expenses you can deduct from your taxes.

Distance allowance and income tax calculation

The German distance allowance is €0.30 per kilometer and applies to your trips between home and your primary workplace. The maximum amount you can deduct for this is €4,500. If you drive your own vehicle, there is no maximum amount. However, if you use a company car at no cost to yourself, you cannot claim the distance allowance. Since 2022, you even get more: From the 21st kilometer, you can claim €0.38 per kilometer – this rule is valid until the end of 2026. It was decided in the context of the climate package and is intended to particularly relieve commuters in rural areas who have no alternative to their car. Originally, this increase was planned for 2024, but it was brought forward due to the federal government’s energy relief package and applies retroactively from January 1, 2022.

In addition to the distance allowance, there are other industry-specific employee expenses that are often overlooked. Employees in the construction industry, roofing trade, scaffolding, and landscaping can, for example, claim the winter construction levy as employee expenses. This levy is deducted monthly from the gross salary and can significantly reduce the tax burden.

Distance allowance – what is considered?

Find out what the tax office considers when you want to claim a distance allowance on your tax return for the current tax year.

Kilometer allowance from the employer – simple distance

For the distance allowance, the tax office first looks at the simple distance. You receive the full allowance for each workday on which you actually went to work – regardless of whether you later return home or not.

Tax on distance allowance – number of trips

You can only claim the distance allowance for the kilometers you actually traveled to your primary workplace on specific days. In a five-day week, that’s about 220 days a year. Remember to deduct vacation days, sick days, and business trips from home. There is no reimbursement for travel expenses on home office days.

Deduction of distance allowance – primary workplace

You can only deduct the distance allowance for trips to the primary workplace. The primary workplace is the location you are permanently assigned to. If you work at multiple locations, your employer should clearly determine which one is your primary workplace.

Tax refund for distance allowance – shortest road connection

For calculation, the shortest road connection between your home and workplace is considered. Only full kilometers are counted. However, you can also specify a longer route – provided it is the regularly used and more convenient connection for you.

Calculation of distance allowance – multiple residences

If you commute to work from different residences, you can only deduct a longer route if this residence is considered your main residence and you do not merely stay there occasionally. Since 2014, it also applies that you must bear at least 10% of your living costs (rent, groceries, etc.) there.

Distance allowance – maintaining a dual household

If you regularly commute between your main residence and a second residence, you can also claim these trips as family home trips for tax purposes. Since 2021, it also applies that if you are a long-distance commuter, you get an increased allowance from the 21st kilometer. If your employer has already paid you a tax-free distance allowance, this will be credited against your claim.

Tax refund for distance allowance – what can be deducted?

German workers get to their workplaces in many ways. This often raises questions and doubts about what commuting expenses are tax-deductible. What does it look like in practice? For the tax office, it doesn’t matter which means of transport you use to get to work. When combining means of transport (e.g., car and bus), only the simple route counts – the crucial factor is the shortest road connection. Anyone in Germany who forms a carpool can also apply for the distance allowance. In this case, the distance when switching to pick up passengers does not need to be included in the calculation. The maximum amount of the distance allowance (€4,500) also applies to carpools on weekdays when the passengers do not use their own vehicle. Also deductible are commuter tickets and subsidies for public transport, minus taxes and social security contributions that the employer grants to their employees. However, such an advantage must be declared in the tax return so the tax office can appropriately reduce the distance allowance.

Tax reimbursement for trips – what else is deductible?

• Trips to other company locations,
  ● meal allowances for absences exceeding eight hours,
  ● customer visits, training sessions, and trade fairs (without private detours),
  ● accident costs on the way to work (in addition to the allowance as extraordinary expenses),
  ● travel expenses for people with a degree of disability of at least 70 or 50 with a mark G,
  ● trips from the recognized home office,
  ● business trips as a self-employed person.

German distance allowance – what cannot be deducted?

• Tax-free benefits in kind or flat-rate compensation for trips to work,
  ● routes with the company car if you can use it for free,
  ● flights or free public transport journeys that you receive tax-free.

Calculation of distance allowance – how?

The calculation is not as complicated as you might think. You can be supported by a tax consultant or a wage tax assistance association – or you can do it yourself with a tool like Taxando. With it, you can securely record all relevant data for the distance allowance and receive your expected refund amount for the current tax year.