Germany's commuter tax deduction — officially called Entfernungspauschale but widely known as Pendlerpauschale — lets employees deduct daily commuting costs from their taxable income. The rate is €0.30 per kilometre for the first 20 km and €0.38 per kilometre from km 21 onwards (one-way distance). Our commuter allowance calculator computes your annual deduction and estimated tax savings instantly.
What is the Pendlerpauschale?
The Pendlerpauschale is a work-related expense deduction under § 9 para. 1 no. 4 of the German Income Tax Act (EStG). It compensates employees for the cost of commuting between their home and their primary workplace.
A key feature: the deduction is transport-neutral. Whether you drive, take the train, cycle, or walk, you claim the same flat rate per kilometre. No receipts needed — the amount is fixed by law.
Rates and formula 2026
The two-tier rate structure has been in effect since 2022:
- Km 1–20: €0.30 per kilometre (one-way)
- Km 21 onwards: €0.38 per kilometre (one-way)
Daily deduction for distances over 20 km:
Daily deduction = 20 km × €0.30 + (distance − 20) km × €0.38
Annual deduction:
Annual deduction = daily deduction × working days
Worked examples
Example 1: 20 km by car, 230 working days
- Daily deduction: 20 × €0.30 = €6.00
- Annual deduction: €6.00 × 230 = €1,380
- Tax savings at 35% marginal rate: €1,380 × 0.35 = €483
Example 2: 35 km by car, 230 working days
- Daily deduction: 20 × €0.30 + 15 × €0.38 = €6.00 + €5.70 = €11.70
- Annual deduction: €11.70 × 230 = €2,691
- Tax savings at 35% marginal rate: €2,691 × 0.35 = €941.85
The €4,500 cap for non-car commuters
If you do not use your own car (train, bus, bicycle, on foot), your annual deduction is capped at €4,500. This ceiling applies to public transport and all other modes.
Own-car commuters face no cap. Someone driving 100 km each way for 230 days can deduct the full calculated amount — even if it exceeds €8,000.
Tip: If your actual public transport costs exceed €4,500 and you can prove them with tickets or season passes, you may claim the documented costs instead (§ 9 para. 2 EStG).
Which days count?
Only days on which you actually travelled to your primary workplace count. Holidays, sick days, remote-work days and business trips do not qualify. A standard full-time employee typically has around 220 to 230 commuting days per year.
The tax office generally accepts self-reported figures without individual proof. Keep a calendar or timesheet records to be safe.
How to claim it
Enter the commuter deduction under work-related expenses (Werbungskosten) in Annex N (Anlage N) of your German tax return. You will need:
- Address of your primary workplace
- One-way distance in km (shortest road route)
- Number of commuting days per mode of transport
- Mode of transport (own car or other)
Use the income tax calculator to see how the commuter deduction affects your overall tax bill. The salary calculator or hourly wage calculator can help you estimate your marginal tax rate — which determines how much you actually save.
How much do you save?
The commuter deduction reduces your taxable income. Actual savings depend on your marginal tax rate:
- At 25% marginal rate: €1,380 deduction → €345 tax saved
- At 35% marginal rate: €1,380 deduction → €483 tax saved
- At 42% marginal rate: €1,380 deduction → €579.60 tax saved
Higher earners benefit more: the higher the marginal rate, the more each deducted euro is worth.
Frequently asked questions
Do home-office days count?
No. On days you work from home you do not travel to your primary workplace. These days must not be included. Germany has a separate home-office flat rate (Homeoffice-Pauschale) for remote-work days.
What is the "shortest road route"?
The tax office generally requires the shortest practicable road distance. A longer route may be accepted if it is clearly faster in practice (e.g. significantly less traffic).
Can I deduct fuel costs on top?
No. The flat rate replaces all commuting costs. Actual petrol, parking, or maintenance costs are not additionally deductible.
What if I work at multiple locations?
The commuter deduction applies only to your primary workplace. Travel to other work sites is treated as a business trip (Dienstreise) and can be deducted at €0.30 per driven kilometre (both ways).