Millions of working Germans are set to benefit from a higher commuter tax allowance (Pendlerpauschale) under the incoming black-red government. The proposal will increase the rate from 30 to 38 cents per kilometer—and for the first time, this new rate will apply from the very first kilometer of your commute.
This means that even employees with short distances to work will feel a significant difference in their net income—especially those who previously didn’t qualify for the higher rate beyond the 20 km threshold.
What’s changing with the Pendlerpauschale?
Current rule:
- First 20 km: 30 cents/km
- From 21st km onward: 38 cents/km
New rule (from 2026):
- 38 cents per kilometer starting from kilometer one
This change affects everyone—whether they commute by car, bicycle, train, or bus.
Who benefits—and how much?
The German Taxpayers’ Association (Bund der Steuerzahler) has crunched the numbers. Here’s how much more commuters can save each year, based on a 5-day workweek (220 working days annually):
One-way distance Old allowance (€/year) New allowance (€/year) Annual gain
- 15 km €990 €1,254 +€264
- 20 km €1,320 €1,672 +€352
- 30 km €2,156 €2,508 +€352
The maximum gain is €352 per year, because kilometers beyond 20 already received 38 cents under the previous system. Therefore, those with shorter commutes benefit the most in percentage terms.
Important: The allowance applies only to the one-way commute between your home and your workplace—even though you travel back and forth daily.
How do you claim the Pendlerpauschale?
The commuter allowance is not paid out directly. Instead, it is listed as “Werbungskosten” (work-related expenses) in your annual tax return.
It reduces your taxable income, which in turn lowers your total tax burden.
It applies regardless of the mode of transport: car, bus, train, bike—it’s all covered.
Even public transport users can save big
Example: A commuter who travels 20 km one way and uses the Deutschlandticket (€58/month or €696/year) can still claim the full Pendlerpauschale of €1,672.
That means you could deduct over twice the cost of your annual ticket from your taxable income—potentially making money from your commute if your income level allows it.
