The German Commuter Allowance in 2026: 38 Cents from the First Kilometre

The Entfernungspauschale (commuting allowance) is going up. From 1 January 2026 the rate is a flat 0.38 euros per kilometre from the first kilometre, replacing the two-tier structure of 0.30 euros for the first 20 kilometres and 0.38 euros beyond that.

The point most guides leave out: this applies to tax year 2026, the return you file in 2027. The 2025 return, the one due now, still uses the old tiers.

The short version

• From 1 January 2026: 0.38 euros per kilometre from kilometre one, one way, per working day.
• Enacted in the Steueränderungsgesetz 2025. The Bundestag approved it on 4 December 2025, the Bundesrat on 19 December 2025.
• For tax year 2025 the old rates still apply: 0.30 euros for kilometres 1 to 20, 0.38 euros from kilometre 21.
• The gain is capped. Commute 20 kilometres or more and you gain exactly 1.60 euros per working day, whatever the distance.
• The Mobilitätsprämie (mobility premium) for low earners was made permanent, but still only covers kilometres from the 21st.
• The 4,500 euro annual ceiling stays, and still falls away only if you travel by your own car.

What actually changes

Rule	Tax year 2025	From tax year 2026
Kilometres 1 to 20	0.30 euros	0.38 euros
From kilometre 21	0.38 euros	0.38 euros
Annual ceiling	4,500 euros	4,500 euros
Mobility premium applies from	Kilometre 21	Kilometre 21

Nothing else about the mechanics changes. You still claim the one-way distance, not the round trip, for each working day you actually travelled to your erste Tätigkeitsstätte (primary place of work). The shortest road connection governs; a longer route counts only if it is genuinely quicker and you used it.

What the reform is worth

The difference only exists on the first 20 kilometres, at 8 cents each. Beyond kilometre 20 nothing changes. That gives one number worth remembering: at most 1.60 euros more per working day.

Over 220 working days:

One-way distance	2025	2026	Extra deduction
10 km	660.00 euros	836.00 euros	176.00 euros
15 km	990.00 euros	1,254.00 euros	264.00 euros
20 km	1,320.00 euros	1,672.00 euros	352.00 euros
30 km	2,156.00 euros	2,508.00 euros	352.00 euros
50 km	3,828.00 euros	4,180.00 euros	352.00 euros

Someone driving 50 kilometres gains exactly as much as someone driving 20. The relief was deliberately aimed at shorter commutes.

What reaches your bank account? The last column is extra deduction, not refund. At a marginal rate of 30 percent, 352 euros of deduction becomes roughly 106 euros more refund, plus the effect on solidarity surcharge and church tax.

The catch worth knowing

The commuting allowance is a work-related expense. The tax office already deducts the Arbeitnehmer-Pauschbetrag of 1,230 euros from every employee’s salary without any receipts. Only what exceeds it has any effect.

For someone with a 10 kilometre commute over 220 days, the deduction rises from 660 to 836 euros in 2026. Both sit below 1,230 euros. Without other work-related expenses, that person gains nothing at all from the reform.

So it helps people who already clear the standard allowance, or who now cross it because of the increase. Our guide to work-related expenses for employees covers which items get you there.

Home office days now do different maths

A day worked from home is worth the 6 euro day rate. A day in the office is worth the commuting allowance. You cannot claim both for the same day, unless no other workplace is permanently available to you.

That moves a threshold:

• In 2025, an office day beat a home office day from 20 kilometres up (20 × 0.30 = 6.00 euros).
• In 2026, it does so from 16 kilometres (16 × 0.38 = 6.08 euros).

This is no reason to change how you work, but it explains why the arithmetic looks different from 2026 onwards. More in our guide to the home office day rate and the home study.

The mobility premium for low earners

If you earn so little that you stay below the basic tax-free allowance, a larger deduction is worth nothing to you, because there is no income tax to reduce. The Mobilitätsprämie exists for those cases, and the Steueränderungsgesetz 2025 removed its expiry date, so it is now permanent.

It is 14 percent of the commuting allowance and still applies only to kilometres from the 21st. You need taxable income below the basic allowance, work-related expenses above the 1,230 euro standard allowance, and a premium of at least 10 euros. You claim it with your income tax return.

Worth setting expectations: the increase to 38 cents from the first kilometre does not feed into the mobility premium, because its calculation starts at kilometre 21.

What reduces your allowance

Two fields on your Lohnsteuerbescheinigung (annual payroll tax statement) matter here:

• Number 17: tax-free employer benefits for the commute, typically a Jobticket under § 3 Nr. 15 EStG.
• Number 18: employer benefits for the same journeys taxed at the flat 15 percent rate.

Both reduce the commuting allowance. Miss them and you claim too much, and since the data arrives electronically the tax office corrects it reliably. Our guide to reading your Lohnsteuerbescheinigung explains what each figure means.

What to do now

1. Change nothing on the 2025 return. The old tiers apply. Claiming 0.38 from kilometre one will be corrected.
2. Count your 2026 office days as you go. The number of days you travelled in is the figure you cannot reconstruct in January 2027. A calendar entry is enough.
3. Check the distance. Shortest road connection between home and primary workplace, in whole kilometres.
4. Watch for subsidies. A new travel pass or commuting subsidy from 2026 reduces your allowance.
5. Compare against the standard allowance. Your commute only has an effect above 1,230 euros.

How Solobooks helps

In Solobooks you enter the one-way distance and the number of working days, and the rate split is calculated for you. Tax year 2026 uses the new flat 0.38 euros from the first kilometre, tax year 2025 uses the old tiers, so each year gets the rule that actually applies to it.

Your estimated refund stays visible throughout, so you can see immediately whether your commute clears the 1,230 euro allowance or whether you need other items.

You can file the 2025 return now.

File your tax return with Solobooks

For how the return works end to end, see our step-by-step guide for employees.

Frequently asked questions

Does the increase apply to my 2025 return? No. It applies from 1 January 2026 and shows up for the first time in the return for 2026, filed in 2027.

Does the round trip count? No. You claim the one-way distance, per working day.

I take the bus and train. Do I still get the allowance? Yes. The allowance does not depend on how you travel. If your actual ticket costs are higher, you can claim those instead.

Does the 4,500 euro ceiling still apply? Yes. It still falls away if you travel by your own car or one provided to you.

What about business trips? Travel to changing work locations is not covered by the commuting allowance. It follows the travel expense rules, at 0.30 euros per kilometre actually driven, counting both directions.

Will I get anything back retroactively? No. The change applies from 2026 and does not reach back into earlier years.

Sources

• § 9 Abs. 1 Satz 3 Nr. 4 EStG, commuting allowance
• §§ 101 to 105 EStG, mobility premium
• § 3 Nr. 15 EStG, tax-free employer benefits for commuting
• Bundesregierung, Steueränderungsgesetz 2025, approved by the Bundesrat on 19 December 2025
• Bundesfinanzministerium, Die wichtigsten steuerlichen Änderungen 2026

Last checked: 17 September 2026. This article is general information, not tax advice for your individual case. Legislation and official guidance change, the current version of each source prevails.

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Last updated: September 14, 2026