Commuter allowance for 2026: 38 cents starting with the first kilometer

How much will the commuter allowance be in 2026?

The commuter allowance—commonly referred to as the pendlerpauschale—amounts to exactly €0.38 in 2026 for each full kilometer of the one-way distance between the taxpayer’s residence and the primary place of work. Starting with the first kilometer. This is governed by Section 9(1), Sentence 3, Item 4 of the Income Tax Act (EStG), as amended by the Tax Amendment Act of 2025 dated December 22, 2025. The amendment has been in effect since January 1, 2026.

Through 2025, the rate was tiered: €0.30 for the first 20 kilometers, and €0.38 starting at the 21st kilometer. The legislature has eliminated this tiered structure. For short distances, the rate therefore increases from €0.30 to €0.38. For long distances, only the portion up to the 20th kilometer changes.

How do you calculate the commuter allowance?

You multiply the kilometers of the one-way trip by the number of workdays and by €0.38. The round trip counts as a single distance. A flat rate is applied for each workday on which you travel to your primary place of work (Section 9(1), sentence 3, no. 4, sentence 2 of the Income Tax Act (EStG)).

Kilometers are rounded up: For 24.8 kilometers, count it as 24. The shortest road route is used as the basis for calculation. A different route may be used as the basis if it is clearly more convenient and is used regularly (sentence 4). This also applies if you travel by bike or train: The flat rate is based on the road distance, not on your actual route.

What will change compared to 2025?

The difference lies in the first 20 kilometers. There, the rate rose from €0.30 to €0.38—an increase of €0.08 per kilometer. Starting at kilometer 21, the rate was already €0.38 as of 2025.

This leads to the following calculation: Anyone who drives 20 kilometers or more will always earn exactly €1.60 more per workday in 2026 than in 2025 (20 × €0.08). Whether it’s 25 kilometers or 55, the increase remains the same. Anyone who drives less than 20 kilometers should multiply 0.08 € by their own number of kilometers.

When does the €4,500 limit apply, and when does it not?

The flat rate is capped at €4,500 per calendar year. This does not apply if you use a vehicle that you own or that has been made available to you for your use (Section 9(1), sentence 3, no. 4, sentence 2 of the Income Tax Act (EStG)). For trips taken by car, therefore, the full lump-sum allowance is applied, even if it exceeds 4,500 €.

For bus and train travel, the actual costs may be claimed to the extent that they exceed the commuter allowance (Section 9(2), second sentence, of the Income Tax Act (EStG)). If the employer pays tax-free subsidies for travel in addition to the wages already owed, or if the employer provides a tax-free ticket, these amounts reduce the deductible amount (Section 3 No. 15, Sentence 3 of the German Income Tax Act (EStG)). If you finance the ticket through salary conversion, it is not tax-free, and in that case, nothing is credited. The same applies to tax-exempt benefits in kind under Section 8(2), sentence 11, or (3) of the EStG. A tax-exempt company bicycle under Section 3 No. 37 of the EStG is not taken into account.

Commuting and Working from Home: How Do the Days Count?

The commuter allowance applies only to days on which you travel to your primary place of work. If you work primarily from home on a given day and do not travel to the office, that day counts toward the €6 daily home office allowance (Section 4(5), sentence 1, no. 6c of the Income Tax Act (EStG); for employees, via Section 9(5) of the EStG).

If you travel there on a single day anyway, the daily flat rate is applicable in only one case: you have no other permanent place of work available to you (No. 6c, sentence 2). No. 6c, sentence 3, excludes the daily flat rate if accommodation expenses are deductible or if a home office is deducted under No. 6b. With regard to accommodation expenses, it is therefore sufficient that the deduction would be possible.

How does the commuter allowance work in addition to the €1,230?

The commuter allowance is a category of income-related expenses. The tax deduction already includes the employee lump-sum allowance of €1,230 (Section 9a, Sentence 1, No. 1, Letter a of the Income Tax Act (EStG)). In addition, income-related expenses are only taken into account to the extent that they total more than €1,230.

With the flat rate, the commute distance is reached more quickly. The rate of 0.38 € exceeds 1,230 € once the annual distance reaches 3,237 kilometers. At 15 kilometers per day for 220 days, that amounts to 3,300 kilometers, or €1,254. Under the 2025 rate, the same distance would have cost €990.

What about the mobility bonus?

The mobility bonus is a benefit for taxpayers with lower incomes (Sections 101 et seq. of the Income Tax Act). It was originally set to expire in 2026. The Tax Amendment Act of 2025 removes this time limit, meaning the allowance will remain in effect beyond 2026. The text of the law continues to link the commuter allowance to the commuting allowance starting at the 21st full kilometer of commuting distance (Section 101, Sentence 1, EStG). The allowance amounts to 14 percent of the tax base and is only granted if it amounts to at least €10. You must apply for it at the tax office no later than the end of the fourth calendar year following the year in which the entitlement arises. The amount and eligibility requirements are governed by §§ 101 through 109 of the Income Tax Act (EStG).

How do I include the flat-rate amount on my tax return?