Under housing benefit (Wohngeld), high commuting costs are planned to count for less from 2027: according to the government bill to simplify the Housing Benefit Act, only the flat-rate deduction for income-related expenses will be applied. This mainly affects career starters and students with a side job and a long commute. This guide separates what the bill says, what is still open and how to estimate the effect for you. More housing topics are collected in our housing guide for students.
In short: According to the government bill (Bundesrat document 474/26 of 14 August 2026, Bundestag document 21/8284), section 14 (1) of the Housing Benefit Act (WoGG) is to be supplemented: for income that has a flat-rate deduction under section 9a of the Income Tax Act (EStG), only the flat rate counts, and higher expenses such as commuting costs are ignored. The bill has not been passed. Last updated: November 2026.
Key points
- The bill is a government draft in the legislative process, not current law.
- For employment income only the flat-rate deduction under section 9a EStG is to be applied, currently 1,230 euros per year.
- Your actual commuting costs do not rise, but they would no longer reduce the income used for housing benefit.
- The reform covers other points as well, including a one-time suspension of the regular adjustment and a halved heating cost component.
- How the change affects your entitlement depends on rent, rent level of your municipality, household size and other income.
What does the bill say about commuting and income-related expenses?
Housing benefit depends on rent, household size and total income. When income is determined, income-related expenses (Werbungskosten) are deducted, that is work-related costs such as travel to the workplace. The government bill for the simplification and further development of the Housing Benefit Act adds a new sentence to section 14 (1) WoGG: for income covered by section 9a EStG, expenses are deducted only up to the flat-rate amounts named there, and higher expenses are not taken into account.
The text of the bill mentions neither commuting costs nor the commuter allowance explicitly. The rule concerns all higher income-related expenses, with commuting costs being the typical case. As its aim the bill generally names less administrative effort: income determination is to rely more on flat rates from tax law, so authorities no longer have to check actual expenses.
How far has the legislative process come?
| Step | Status | Evidence |
|---|---|---|
| Government bill | Sent to the Bundesrat on 14 August 2026, deadline expired 25 September 2026 | Bundesrat document 474/26 |
| Opinion of the Bundesrat | The Länder welcome the simplifications and criticise the cuts | Bundestag, hib 768/2026 of 5 October 2026 |
| Government counter-statement | The government takes note of the objections | Bundestag, hib 768/2026 |
| Bundestag | Bill introduced as document 21/8284, no vote documented | Bundestag document 21/8284 |
| Entry into force | The transitional provisions of the bill begin on 1 January 2027 | Bundesrat document 474/26 |
So nothing has been passed yet. There is no Bundestag vote and no publication in the Federal Law Gazette for the commuting rule. The text may change during the process. The government puts the savings of the reform as a whole at 1.156 billion euros for 2027 and 1.486 billion euros for 2028.
What does the flat rate mean in euros?
The employee flat rate in section 9a EStG is 1,230 euros per year. It is applied without proof. Under the bill, housing benefit would stay at this amount even if your actual expenses are higher.
Assumption: you work part time and have 2,400 euros of commuting costs per year, with no other income-related expenses. Following the logic of the bill, higher expenses can currently be taken into account, in future only 1,230 euros. The annual income relevant for housing benefit would then be 1,170 euros higher (2,400 minus 1,230). Other flat-rate deductions in the income calculation are unaffected. How much housing benefit that actually changes depends on the Wohngeld formula and can only be clarified with the housing benefit calculator or at the Wohngeldstelle.
Important: the commuter allowance in tax law does not change through this bill. It only concerns how income is determined for housing benefit.
Who is affected and who is not?
| Group | Effect |
|---|---|
| Career starters with a long commute and low income | May be affected if commuting costs exceed the flat rate |
| Employees with commuting costs below 1,230 euros a year | Little change on this point because the flat rate applies anyway |
| Students with a side job | Only relevant if housing benefit is an option at all, which is generally excluded for people entitled to BAföG |
| Households without employment income | Not affected because no such expenses arise |
Whether students can receive housing benefit at all is explained in Student Housing Benefit: Who Qualifies and How to Apply. For the other points of the reform see Housing benefit 2027: heating cost component and Housing benefit 2027: regular adjustment suspended.
What stays unchanged, and what should you keep on file anyway?
Nothing changes for tax: in your income tax return you can still claim commuting costs through the commuter allowance if you meet the tax conditions. The housing benefit rule only concerns which income the Wohngeldstelle uses. Keep the two levels apart: a tax refund does not replace housing benefit and vice versa.
Even if commuting costs would no longer count individually in the housing benefit procedure, it is worth keeping your receipts in order. They help with your tax return and with a possible objection. Anyone receiving housing benefit has to report changes in income and rent to the Wohngeldstelle anyway, for example a job change with a different commute. How far such changes affect the amount will depend more on the flat rate than on individual receipts.
Frequently asked questions
Does the change apply already?
No. It is a government bill; the Bundesrat has given its opinion and the bill is with the Bundestag. Until it is promulgated, current law applies.
Will my commuting costs rise?
No. Your costs stay what they are. They would only no longer reduce the income that the housing benefit office uses beyond the flat rate.
How high is the flat rate?
The employee flat rate under section 9a EStG is 1,230 euros per year. Pensions from public service have their own, lower flat rate.
What happens to ongoing awards?
That is regulated by the transitional provisions, which the bill starts on 1 January 2027. Your Wohngeldstelle can tell you from when your case would be recalculated.
Where can I check my entitlement?
At the housing benefit office of your city or district. Many federal states offer online calculators that also take the municipal rent level into account.
What to do now
- Check whether you receive or want to apply for housing benefit and prepare proof of rent, income and a list of commuting costs.
- Roughly calculate your annual commuting costs and compare them with the 1,230 euro flat rate.
- Follow the bill through Bundestag document 21/8284 or the Bundestag website.
- Apply for a continued award in good time before your current period ends.
- Ask the Wohngeldstelle from when the new calculation would apply to you.
Related guides
- Housing while studying: rent, shared flats, dorms and housing benefit
- Housing benefit 2027: heating cost component
- Housing benefit 2027: why the regular adjustment is to be skipped
- Student Housing Benefit: Who Qualifies and How to Apply
- Minijob limit 2027 for students (in German)
Sources: Bundesrat document 474/26, government bill to simplify and develop the Housing Benefit Act, 14 August 2026 (in German); Bundestag document 21/8284 (in German); Bundestag, hib 768/2026 of 5 October 2026 (in German); Section 9a EStG, Gesetze im Internet (in German).
Last updated: November 2026. This guide is general information, not individual advice.
