Commuting, working from home, work equipment, continuing education, rental income, or pension: Deductible expenses reduce your taxable income if they’re related to your earnings. Here you’ll find rules, flat rates, calculators, and special cases—without the tax jargon.
The law defines income-related expenses as expenditures incurred to acquire, secure, and maintain income. What matters, therefore, is not whether something is “practical for work”—but whether there is a sufficient connection to a type of taxable income.
Commuting expenses, work equipment, continuing education, or financing costs for a rental property can be income-related expenses if the tax-related connection is established.
Employees automatically receive €1,230. Only actual expenses that exceed this amount replace the flat rate. The flat rate is not a reimbursement of €1,230.
Income-related expenses also apply to rental income, pensions, and other surplus income. Special rules apply to investment income. Self-employed individuals have business expenses.
This amount is taken into account if no higher income-related expenses are documented.
In addition, this includes, among other things, continuing education, travel expenses, moving expenses, and maintaining two households.
Union dues are taken into account in addition to the lump-sum amount.
Interest on debt may be considered income-related expenses if the loan is economically attributable to the rental activity.
Depreciation and certain maintenance expenses reduce rental income.
For example, property tax, certain insurance premiums, and other property-related expenses.
A lump-sum amount totaling 102 € applies to income-related expenses for the income reported there.
A flat-rate deduction of 102 € for income-related expenses also applies to pension benefits from employment.
If higher expenses are directly related to this income, the situation may differ on a case-by-case basis.
This amount is applied to private income from capital assets.
Spouses who file a joint tax return receive a combined saver’s allowance of 2,000 €.
Section 20(9) of the Income Tax Act (EStG) generally replaces the deduction for actual income-related expenses with the saver’s flat-rate allowance. Exceptions apply if the income is subject to the Income tax schedule.
For income from profits, business-related expenses are considered business expenses.
Working from home, work equipment, or travel expenses may still be deductible—but only under the correct tax category.
For business expenses, different deduction restrictions, record-keeping requirements, and allocation rules may apply in some cases.
The calculator takes into account the commuting allowance, the daily home office allowance, the employee allowance, and the special rule for union dues starting in 2026.
Simplified employee check. It calculates income-related expenses—not your final tax refund.
Relevant for public transportation if the actual costs exceed the distance allowance.
Starting in 2026, union dues will be taken into account in addition to the employee flat-rate allowance.
Simplified calculator for employees. No tax calculation. Employer reimbursements, special cases, and individual allocations may affect the result.
For the 2025 tax year, the rate is €0.30 per full kilometer of distance for the first 20 km and €0.38 starting at the 21st km—calculated per actual workday. Generally, the one-way distance to the primary place of work is counted. Outlook: Starting in the 2026 tax year, the graduated scale will be eliminated, and €0.38 will apply starting with the first kilometer.
Calculate the 2026 commuter allowance arrow_forward€6 per calendar day on which the legal requirements are met, up to a maximum of €1,260 per year. This does not cover the cost of work equipment.
Home Office Allowance in Detail arrow_forwardTools, typical work clothing, or technical equipment may qualify as income-related expenses. For work equipment that can be used independently, the GWG threshold of 800 € net applies; with 19% sales tax, this corresponds to 952 € gross. For computer hardware and software, a useful life of one year may be assumed.
Continuing education in one’s chosen profession, vocational retraining, and a second degree may qualify as income-related expenses. Different rules apply to initial vocational training or a first degree pursued outside of an employment relationship.
Work-related travel, lodging, and incidental travel expenses may be deductible. For additional meal expenses within Germany, the rates are €14 or €28, depending on the duration of absence and the day of travel.
In cases of work-related dual household arrangements, necessary additional expenses may be deductible. In 2026, housing costs are generally limited to €1,000 per month within Germany and €2,000 per month abroad.
A job-related change of residence may give rise to income-related expenses. If the employer reimburses the costs tax-free, a double deduction of income-related expenses is excluded to that extent.
The portion of telephone and internet costs used for work is deductible. As a simplification, for typical business use, up to 20% of the invoice amount—up to a maximum of €20 per month—may be recognized without providing individual documentation.
Unreimbursed costs incurred while searching for a job may qualify as income-related expenses—for example, postage, photocopying, phone calls, or travel expenses to job interviews. Whether the job application is successful is not a determining factor.
Dues for professional associations and trade unions may qualify as job-seeking expenses. Starting in 2026, union dues will be explicitly taken into account in addition to the flat-rate allowances.
Typical work clothing may be tax-deductible. Regular everyday clothing is generally considered personal—even if you wear it almost exclusively at work.
Tax-free employer reimbursements preclude the deduction of income-related expenses for the same costs. Only expenses that you personally bear are deductible.
For rental and leasing income, economically attributable interest on debt, depreciation, and certain maintenance expenses, among other things, may be deductible. Under certain conditions, anticipated income-related expenses may arise even before the first rent payment is received.
More on Rental Income & Schedule V arrow_forwardFor income specified in Section 22 Nos. 1, 1a, and 5 of the Income Tax Act (EStG), a flat-rate deduction for income-related expenses totaling €102 applies. A €102 flat-rate deduction also applies to pension payments from employment.
More on tax returns for retirees arrow_forwardA special rule applies here: The saver’s flat-rate deduction is €1,000, or €2,000 in the case of joint filing. For most capital gains, the deduction of actual income-related expenses is not permitted in addition to this.
The situation is different if the capital gains are subject to standard income tax rather than withholding tax. In that case, actual investment-related expenses may be deductible — for example, in the case of a stake of at least 10% in a corporation or cooperative, a stake in a commercial enterprise as a silent partner, or profit-sharing loans, as well as income from other types of capital claims, such as a private loan.
More for Investors arrow_forwardInvoices, receipts, and records of work-from-home days or business trips will be helpful if the tax office asks for them later.
Employees: Schedule N. Dual-household status: your own Schedule N—Dual-Household Status. Landlords: Schedule V. Self-employed individuals: business expenses instead of income-related expenses.
According to ELSTER guidelines, you generally do not have to automatically submit supporting documents with your income tax return. However, the tax office may request them.
You won’t receive €1,230 in cash. This amount reduces your taxable income from employment.
Statutory rules regarding overlapping days apply. Therefore, be sure to document office and work-from-home days accurately.
Expenses reimbursed tax-free generally may not be deducted again as income-related expenses.
A suit is generally considered personal clothing. Only typical work clothing is deductible—not just clothing you wear for work.
Continuing education, retraining, and a second degree may qualify as income-related expenses. Special limits apply to initial training and a first degree.
If you have multiple sources of income, mixed expenses must be properly allocated or apportioned.
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