Commuter Allowance 2026 in Germany: 0.38 € per Kilometer from km 1
Since January 1, 2026, Germany uses a flat 0.38 € per kilometer for every commuter, regardless of distance. The old tiered system (0.30 € up to km 20) is gone. Here's how to claim your refund as a foreigner in Germany.
Key Takeaways
- New uniform 2026 rate: 0.38 € per kilometer from the very first kilometer (no more tiered 0.30/0.38 split).
- Legal basis: Section 9 (1) No. 4 of the Income Tax Act (Einkommensteuergesetz, EStG) — no expiry date.
- Public transit cap: 4,500 €/year (unless you can prove higher actual costs).
- Low-income earners: can apply for the Mobility Bonus (Mobilitätsprämie) under § 101 EStG instead — 14 % of the assessment base as a cash refund.
- Home office days: no commuter allowance, but 6 € per day home office allowance (max. 1,260 €/year).
- Concrete example: 35 km × 220 days × 0.38 € = 2,926 € deductible. At a 35 % marginal tax rate, about 1,024 € less income tax.
Commuter Allowance 2026 at a Glance
From km 1
0.38 €
per kilometer one-way distance
Public Transit Cap
4,500 €
per year (car drivers: no cap)
Mobility Bonus
14 %
for incomes below 12,348 €
Source: § 9 (1) No. 4 EStG · German Federal Ministry of Finance (BMF) — "Das ändert sich 2026" · Annex 14, Wage Tax Handbook 2026.
What changed in 2026?
Until the end of 2025, Germany applied a two-tier commuter allowance: only 0.30 € for the first 20 km, then 0.38 € from km 21. Effective January 1, 2026, this tiered system was abolished. The flat rate of 0.38 € applies from the very first kilometer — according to the Federal Ministry of Finance (BMF), without time limit.
| Period | First 20 km | From km 21 | Legal basis |
|---|---|---|---|
| 2021 | 0.30 €/km | 0.35 €/km | § 9 EStG (old) |
| 2022 – 2025 | 0.30 €/km | 0.38 €/km | § 9 EStG (old) |
| from 2026 | uniform 0.38 €/km from the first kilometer | § 9 EStG (new) | |
Short-distance commuters benefit most: at a 15 km commute, your yearly allowance (220 days) rises from 990 € (2025) to 1,254 € (2026) — an additional 264 € in deductible expenses.
How to calculate your commuter allowance
Formula
- km = one-way distance from home to primary workplace
- Workdays = days you actually go to the office (typical 220 – 230)
- Each day counts once, not round-trip.
Concrete example
- Distance home → work35 km
- Workdays per year220 days
- Commuter allowance 20260.38 € / km
- Total deductible expenses2,926 €
- ≈ Tax savings (35 % marginal rate)1,024 €
Deductible amount and tax savings by distance (220 workdays)
| Distance | Annual deduction | ≈ Savings (25 %) | ≈ Savings (35 %) | ≈ Savings (42 %) |
|---|---|---|---|---|
| 10 km | €836 | €209 | €293 | €351 |
| 20 km | €1,672 | €418 | €585 | €702 |
| 35 km | €2,926 | €732 | €1,024 | €1,229 |
| 50 km | €4,180 | €1,045 | €1,463 | €1,756 |
| 80 km | €6,688 | €1,672 | €2,341 | €2,809 |
Note: Your real tax savings depend on your personal marginal rate and other deductions. These figures are approximations. For a binding calculation, consult a tax advisor (Steuerberater) or a wage tax assistance association (Lohnsteuerhilfeverein).
Works for every mode of transport
The commuter allowance is transport-mode independent (§ 9 (1) No. 4 EStG). It does not matter how you actually get to work — you may even change your transport mode daily.
Car
Full allowance, no cap
Public transit / rail
Allowance or actual costs
Carpool
Each rider separately
Bicycle / walking
Full allowance
Public transit tip: If your actual annual ticket costs (e.g., BahnCard yearly subscription, self-paid Deutschlandticket) exceed the 4,500 € cap, you can submit your receipts and claim the higher real costs.
Home Office + Commuter Allowance — how to combine them
Since 2023, the commuter allowance and the home office allowance both qualify in the same tax year — but never for the same calendar day. Each day you commute to the office, you get the commuter allowance. Each day you work from home, you get the home office allowance.
Commuter allowance
- Amount: 0.38 €/km × distance × office days
- Condition: you travel to your primary workplace
- Cap: 4,500 €/yr for public transit (car drivers: no cap)
- Where to claim: Anlage N, line 31 onward
Home office allowance
- Amount: 6 € per home office day
- Cap: 1,260 €/year (equals 210 days)
- Condition: work from your residence
- Where to claim: Anlage N, line 45
Combo example: 3 days office + 2 days home office
At 35 km distance, 130 office days and 90 home office days per year:
- Commuter allowance: 35 km × 130 days × 0.38 € = 1,729 €
- Home office allowance: 90 days × 6 € = 540 €
- Total deductible: 2,269 € in work-related expenses
Mobility Bonus for low-income earners
If your taxable income is so low that you owe no income tax, the regular commuter allowance deduction does not benefit you directly. For this group, Germany offers the Mobility Bonus (Mobilitätsprämie) under § 101 EStG — an actual cash refund rather than a virtual deduction.
- Who qualifies? Workers with a taxable income below the basic tax-free allowance (Grundfreibetrag: 12,348 € in 2026).
- Amount: 14 % of the assessment base (as currently set under § 101 EStG).
- How to apply: via the Anlage Mobilitätsprämie attached to your annual tax return (ELSTER or paper).
- Payout: as a refund from the tax office after assessment.
Important: The exact calculation of the assessment base after the 2026 reform depends on your specific income and the distance you commute. If you are unsure, the Vereinigte Lohnsteuerhilfe (VLH) or a tax advisor can help you file correctly.
Important tips & common pitfalls
Shortest road route counts
The tax office (Finanzamt) calculates with the shortest road route — even if you actually take a longer path. Detours are only accepted if they are demonstrably faster (e.g., highway instead of country road during rush hour).
220 workdays as benchmark
For full-time employees, the tax office generally accepts 220 – 230 days. You subtract vacation, sick leave, and home office days. Part-time work, parental leave, or short-term employment change the figure accordingly.
Deutschlandticket & employer subsidies
Employer contributions to the Deutschlandticket or a Jobticket are tax-free — but they reduce your deductible commuter allowance by the same amount. Enter the subsidy in Anlage N.
Mind the employee lump sum
Only beyond the employee lump sum (Arbeitnehmer-Pauschbetrag: 1,230 €) does itemizing your work-related expenses make sense. At about 16 km commute over 220 days, you already cross that threshold — so almost always worth itemizing.
Frequently Asked Questions
How much is the commuter allowance in Germany in 2026?
Since January 1, 2026, the commuter allowance (Pendlerpauschale / Entfernungspauschale) in Germany is uniform 0.38 € per kilometer of the one-way distance between your home and your primary workplace. The old tiered structure (0.30 € for the first 20 km, 0.38 € from km 21) was abolished at the end of 2025. Source: § 9 EStG Abs. 1 Nr. 4.
How do I calculate my commuter allowance in 2026?
Formula: one-way distance in km × workdays per year × 0.38 €. Example with 35 km commute and 220 workdays: 35 × 220 × 0.38 € = 2,926 € in work-related expenses. At a 35 % marginal tax rate, that's roughly 1,024 € less income tax per year.
Does the allowance also apply to public transit, bicycle, or walking?
Yes. The commuter allowance is transport-mode independent (§ 9 Abs. 1 Nr. 4 EStG). You can claim it whether you drive, take the train, ride a bike, or walk to work. For public transit users, however, there is an annual cap of 4,500 €, unless you can prove higher actual costs.
What changed for the commuter allowance in 2026?
Previously, Germany used a two-tier rate: 0.30 € for the first 20 km and 0.38 € only from km 21 onward. Effective January 1, 2026, the tiered system was eliminated. The flat rate of 0.38 € per kilometer now applies from the very first kilometer, with no time limit set by the legislator.
How does the Mobility Bonus (Mobilitätsprämie) work?
Low-income earners whose taxable income falls below the basic tax-free allowance (Grundfreibetrag: 12,348 € in 2026) and who therefore owe no income tax can apply for the Mobility Bonus under § 101 EStG. It pays 14 % of the assessment base as a cash refund. You apply via the Anlage Mobilitätsprämie attached to your annual tax return.
How do home office days affect the commuter allowance?
For any day you work from home, you cannot claim the commuter allowance. Instead, you get the home office allowance (Homeoffice-Pauschale): 6 € per day, capped at 1,260 € per year (which equals 210 days). The two allowances can both apply across the year, but never on the same day.
Can I claim carpooling expenses?
Yes. Every carpool participant can claim the full commuter allowance regardless of who actually drives. However, detour kilometers for picking up other riders do not count. If you rarely drive yourself, the 4,500 €/year cap applies, unless you can document higher actual costs.
When does it make sense to claim actual costs instead of the flat allowance?
If you commute by public transit (Deutschlandticket, regional rail pass, etc.) and your documented actual costs exceed 4,500 €/year, you should claim those instead of the flat allowance. Drivers (cars) are not subject to this 4,500 € cap and can claim the flat allowance regardless of distance.
Sources & further reading
- § 9 Income Tax Act (EStG) — commuter allowance
- Federal Ministry of Finance: What changes in 2026
- Finanztip: Entfernungspauschale (independent consumer guide)
- VLH (Vereinigte Lohnsteuerhilfe) — wage tax assistance
This information is general guidance only and does not replace individual tax advice. For your personal situation, contact a tax advisor (Steuerberater) or a wage tax assistance association (Lohnsteuerhilfeverein).