The commuter allowance for first-time employees in Germany is called the Entfernungspauschale in law. It lets you claim the distance between your home and your first place of work as work-related expenses on your tax return. For 2026 the rate is 0.38 euros per full kilometre of the one-way distance. This guide explains how to calculate it and when it really makes a difference.
Short answer: The commuter allowance (Entfernungspauschale, section 9 EStG) is 0.38 euros per full kilometre of the one-way distance for 2026, on every actual working day. With your own car there is no annual cap, with other means of transport a cap of 4,500 euros per calendar year applies. Last updated: October 2026.
The most important points
- You claim 0.38 euros per full kilometre of the one-way distance, not separately for the outward and return trip.
- Only days on which you actually travel to work count.
- The allowance applies regardless of transport mode, including buses and trains.
- It only reduces your tax once your total work-related expenses exceed the flat-rate allowance of 1,230 euros.
- With your own car there is no cap, with other transport the annual cap of 4,500 euros applies.
What is the commuter allowance?
The commuter allowance is the everyday name for the Entfernungspauschale. It does not reimburse actual costs but applies a statutory flat rate for the way to work. The decisive point is your first place of work, meaning the location where you are regularly assigned. This usually means the office, plant or branch of your employer, not every client meeting.
If you move to a new city for your first job, record early where your first place of work is. The distance is then measured between your home and exactly that location. How a job-related move affects your taxes is explained in our guide Moving for your first job.
How much is 0.38 euros per kilometre per year?
The calculation is simple: one-way distance in full kilometres times 0.38 euros times the number of working days. The table below assumes 220 working days a year, without holidays, sick days or home office days.
| One-way distance | Amount per working day | Annual amount with 220 working days (assumption) |
|---|---|---|
| 10 kilometres | 3.80 euros | 836 euros |
| 20 kilometres | 7.60 euros | 1,672 euros |
| 30 kilometres | 11.40 euros | 2,508 euros |
| 40 kilometres | 15.20 euros | 3,344 euros |
Fractions of a kilometre are dropped. At 25.8 kilometres you therefore calculate with 25 full kilometres.
When does the commuter allowance really help?
The allowance only reduces your taxable income once all your work-related expenses together exceed the employee flat-rate allowance of 1,230 euros (2026, section 9a EStG). That amount is applied anyway. If your distance is short and you have no other work-related expenses, the benefit is small.
Assumption: your one-way distance is 25 kilometres, you drive your own car on 220 working days and you have no other work-related expenses. That gives 25 times 0.38 euros, which equals 9.50 euros per day and 2,090 euros per year. Of this, 860 euros exceed the allowance of 1,230 euros. Only this amount affects your tax.
Is there a cap for every means of transport?
The allowance applies to all means of transport in the same way. The cap of 4,500 euros per calendar year does apply if you do not travel by your own or a provided car, for example by bus, train or bicycle. If you commute with your own car, the allowance can be claimed without this cap. For train travel, check separately whether other costs can be claimed. If in doubt, ask your tax office.
Which route counts exactly?
The shortest road connection between your home and your first place of work counts, not the route you actually drive. Detours caused by traffic jams, road works or collecting trips do not increase the allowance. Only the way to work counts, not the trip to a client meeting.
If you make business trips, you settle these separately. For the allowance, only the distance you travel daily between home and your workplace is decisive.
Example with buses and trains
Assumption: you live 40 kilometres from your first place of work and travel by public transport. The allowance is then 15.20 euros per working day. With 220 working days this comes to 3,344 euros. The cap of 4,500 euros is not exceeded. Ticket costs are generally not claimed on top, because the allowance covers them.
How do you record your route correctly?
- Measure the distance between your home and your first place of work on the shortest road connection.
- Round the distance down to full kilometres.
- Note the working days on which you actually travelled.
- Calculate distance times 0.38 euros times working days and keep the list.
- Enter the amount in annex N of your income tax return.
What about home office and holidays?
The allowance is only applied to days on which you actually travel to your first place of work. Home office days, holiday days and sick days do not count. If you work from home on several days, the number of travel days and the amount fall accordingly. This is simply how the allowance is calculated.
Frequently asked questions
What counts if I have several work locations?
The first place of work is decisive. Trips to other assignment locations follow different rules. If your employer regularly sends you elsewhere, ask your tax office or a tax adviser.
Can I take the allowance into account during the year?
Yes. A tax allowance (Freibetrag) applied for with the tax office lets you reflect the amount already in payroll tax withholding. Check in advance whether this is worthwhile for your salary.
Do I need a mileage log?
No. The commuter allowance is calculated from the distance and the working days. A mileage log only matters for the use of a company car, not for this allowance.
Does the allowance also apply to a mini-job?
What matters for work-related expenses is whether your income is taxed and whether you can deduct expenses. Mini-jobs with flat-rate tax are treated differently. Ask how your mini-job is handled before you file.
What happens if I change jobs during the year?
The allowance applies to the route to the respective first place of work. If you change employer or workplace, the calculation changes from the start of the new job. For the year you must record the periods separately and show them clearly in your tax return.
What to do next
- Record your first place of work and the one-way distance in writing.
- Keep a list of travel days from your first working day.
- Check whether your other work-related expenses exceed 1,230 euros.
- If useful, apply for a tax allowance with your tax office.
- Enter the amount in your tax return and keep the list.
Related guides
- Loss Carryforward in Studies: Tax Return Step by Step
- Part-Time Jobs and Taxes for Students in Germany
- Moving for your first job
Sources: section 9 EStG, commuter allowance (as of October 2026), section 9a EStG, employee flat-rate allowance (as of 2026)
Last updated: October 2026. This guide is general information, not individual advice.
