Overview
- A flat commuter allowance of €0.38 per kilometre from the first kilometre is in force for the 2026 tax year and can be claimed on the 2026 tax return filed next year.
- From November 1, 2026 employees may apply for a Lohnsteuer‑Freibetrag for 2027 under §39a EStG so their monthly withholding is reduced if deductible expenses exceed €600.
- A payroll allowance is entered as monthly reductions in withholding, applies for a full calendar year, and may be used for up to two consecutive years before a new application is needed.
- The federal government’s draft income‑tax reform would raise the Arbeitnehmer‑Pauschbetrag to €1,430 but that proposal remains unadopted and should not be treated as law.
- Tax advisers urge workers to gather records now—commute days, home‑office days and receipts—so they can claim the confirmed 2026 allowance and, if eligible, secure earlier net‑pay relief in 2027.