If you study for a part-time master’s degree, you can deduct the costs from your tax as income-related expenses (Werbungskosten) without an upper limit, as soon as you have completed an initial vocational training. You stay insured through your job, because student health insurance applies only if no priority compulsory insurance exists. The university sets what the studies themselves cost. State universities do not charge general tuition fees, but private providers and continuing education programmes may charge fees.
The key points at a glance
- A part-time master’s degree is a master’s programme alongside your job, as a part-time course, distance learning or in weekend, evening and block formats.
- After a completed initial training, the costs are income-related expenses without an upper limit. A loss is carried forward to later years.
- If your employer pays a contribution, clarify the tax treatment with the payroll office in advance. Only costs that you bear yourself can be deducted.
- Employees below the compulsory insurance threshold are statutorily insured through their job. Student health insurance does not apply then.
- The Upgrading Scholarship (Aufstiegsstipendium) supports a first degree, usually up to the bachelor’s. For the master’s, the Germany Scholarship, if your university awards it, and loans can be options. The Education Loan (Bildungskredit) requires full-time study.
Which formats exist for a part-time master’s degree?
A part-time master’s degree is a master’s programme structured so that you can keep working alongside it. The common formats are:
- Part-time study: you take fewer modules per semester than in full-time study, and therefore need more semesters.
- Distance learning: you study mostly at home, with attendance dates only for exams or individual events.
- Weekend, evening and block formats: teaching takes place outside normal working hours.
How many hours per week the studies take is set out in the study plan and the module handbook of the university concerned. Ask the university for the attendance dates of a complete semester and compare them with your shift plans. Whether a master’s is worth it for you at all is covered in Master’s or going straight into work: what pays off more? (in German). An overview of other options is given by Further training after studies: options at a glance (in German).
What does a part-time master’s degree cost?
General tuition fees do not exist in any federal state. Fees can still apply to a second degree after a completed degree. Whether they do, and how much, you learn from the student administration office of your university. At private universities and fee-based continuing education master’s programmes, the provider sets the fee. The total is in the fee schedule of the degree programme, often split into instalments per semester or per month.
| Cost item | What to look out for |
|---|---|
| Semester contribution | Made up of contributions to the student body, the student services organisation and, where applicable, the semester ticket. The amount differs at every university. |
| Administration fees | Some federal states charge enrolment, administration or re-registration fees of around 50 euros per semester. |
| Programme fee | May apply at private providers and continuing education programmes. Ask for the total sum until graduation, not only the instalment. |
| Specialist literature and equipment | Books, software and, where applicable, a laptop. After a completed initial training, these costs count as income-related expenses, and for a laptop used privately only proportionally. |
| Travel and accommodation | Journeys to attendance phases and exams, with an overnight stay where needed. |
With distance learning, the main costs are travel and accommodation for the attendance phases. The Germany semester ticket costs 37.80 euros a month in 2026, where it is offered.
Can you deduct a part-time master’s degree from tax?
Yes, if you have already completed an initial training. The initial training is an orderly training of at least twelve months full-time that ends with a final examination (section 9(6) of the Income Tax Act (EStG), legal text). After a completed initial training, the costs of any further training and any further degree are income-related expenses. This applies both to a master’s after a bachelor’s and to a degree after vocational training.
| Feature | Income-related expenses (second training) | Special expenses (first training) |
|---|---|---|
| Upper limit | None | 6,000 euros per calendar year |
| Effect | Reduce taxable income | Only effective against taxable income in the same year |
| Loss carry-forward | Yes, losses are carried forward to later years | No |
Deductible are, for example, the programme fee, the semester contribution, specialist literature, software, work equipment such as a laptop, and journeys to attendance phases. Keep the invoices and payment receipts for each year.
What does it save? An example
Example with assumed figures: Lena, 29, works as an employee and has a bachelor’s degree. In 2026 she pays 3,400 euros in fees to the university for her part-time master’s degree, 450 euros for specialist literature, 600 euros for journeys and 300 euros for the work-related share of her laptop. That makes 4,750 euros. She has no further income-related expenses. The employee lump sum (Arbeitnehmer-Pauschbetrag) of 1,230 euros is already taken into account in wage tax. Additionally, 4,750 euros minus 1,230 euros equals 3,520 euros, which reduce her taxable income. How much tax this saves depends on her personal tax rate.
Until when can you claim the costs?
A voluntary tax return is possible until 31 December of the fourth following year, so for 2026 until 31 December 2030. If you are obliged to file, without a tax adviser the general deadline is 31 July of the following year. If the costs in one year exceed your income, for example because you have greatly reduced your working hours, the tax office determines a loss, which you offset later. The details on a second degree are explained in Second degree: costs, BAföG, child benefit and taxes (in German), and a general overview is given by Tax benefits for students (in German).
Does the employer pay for the master’s degree?
There is no automatic right to have the costs covered. Whether your employer pays for the studies, contributes to them or only releases you from work is something you agree with the employer. Record the arrangement in writing before enrolment, including release for attendance phases and exams, and the consequences if you leave the company before graduation.
Clarify two points in advance with the payroll office or a tax adviser. First, it is unclear whether a contribution remains tax-free or is taxed as wages. The answer depends on the individual case. Second, you can only deduct costs that you bear yourself. Work out with the payroll office or a tax adviser what remains after a contribution. Ask HR whether you are entitled to educational leave.
Which funding is available for a part-time master’s degree?
| Funding | Amount | What you need to know |
|---|---|---|
| Upgrading Scholarship (Aufstiegsstipendium) | 3,045 euros per calendar year for part-time study | Supports a first academic degree, usually up to the bachelor’s. Requirements are vocational training, at least two years of employment and outstanding professional achievement. |
| Germany Scholarship (Deutschlandstipendium) | 300 euros per month | The university selects on the basis of performance and commitment. Deadlines differ between universities. |
| Education Loan (Bildungskredit) | 100, 200 or 300 euros per month, 4.09% effective interest | Requires full-time study at an advanced stage, and an application before the 36th birthday. |
| KfW student loan (KfW-Studienkredit) | 100 to 650 euros per month, 6.38% effective interest | For ages 18 to 44. Check whether your degree programme is eligible before you apply. |
The Upgrading Scholarship is generally not a solution for a master’s degree, because it supports a first degree. Information on the procedure is available from the programme of the Foundation for Advancement of Vocational Education (Stiftung Begabtenförderung berufliche Bildung). For the Education Loan, full-time study is a requirement. Check with the Federal Office of Administration (Bundesverwaltungsamt) before you apply whether your part-time degree programme fits. All conditions are explained in Education loan from the Federal Office of Administration (in German).
The training voucher (Bildungsgutschein) of the Federal Employment Agency applies to approved further training measures. Whether a master’s counts is decided by the agency in an advice session.
How are you health insured while working?
As an employee, you are statutorily compulsorily insured through your job (section 5(1)(1) SGB V). Student health insurance does not apply if a priority compulsory insurance exists, for example as an employee (legal text of section 5 SGB V). A full-time job alongside the master’s degree therefore changes nothing about your insurance. If your salary is above the compulsory insurance threshold of 6,450 euros a month (2026), you are voluntarily insured in statutory or private insurance.
The contribution is calculated on your gross salary. The general contribution rate is 14.6%, plus your insurer’s additional contribution rate, which averages 2.9% in 2026. Employer and employee share the contribution. It is calculated up to the contribution assessment ceiling of 5,812.50 euros a month.
Before enrolment, the university nevertheless requires a digital confirmation from a statutory health insurer about your insurance status. You request it from your own insurer. It can be retrieved from 1 June at the earliest for the winter semester, and from 1 December at the earliest for the summer semester. Privately insured people also need this confirmation from a statutory insurer.
What applies if you greatly reduce your working hours?
If you work at most 20 hours a week and studies take up more of your time, you count as a student assistant (Werkstudent). You then remain free of contributions in health, long-term care and unemployment insurance, while pension insurance remains compulsory. Student health insurance then applies, as long as you are enrolled at a state or state-recognised university. It ends with the semester in which you turn 30, and continues beyond that only for special reasons. Ask your health insurer to confirm whether a part-time degree counts as predominantly study before you change your contract. All details on student assistant status are explained in Student assistant and health insurance (in German), and the particularities of distance learning in Health insurance for distance learning (in German).
If you want to talk through your situation, you will find the route to advice on the Academycon homepage.
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What changes for pension and salary?
As an employee, you continue to pay contributions to the statutory pension insurance. The contributions are based on your gross salary. If you reduce your working hours for your studies, salary and contributions fall to the same extent.
Example with assumed figures: if you work only 30 hours instead of 40 at the same hourly wage, your gross salary falls to 30 ÷ 40 = 75 per cent. 3,200 euros becomes 2,400 euros, so 800 euros less per month. The German Pension Insurance can calculate for you how this affects your later pension. Factor the loss of salary into your budget before you reduce your hours.
Frequently asked questions
Can you deduct a part-time master’s degree from tax?
Yes, once you have completed an initial training. The costs for fees, semester contribution, specialist literature, work equipment and journeys are then income-related expenses without an upper limit. If your income is not enough, the tax office determines a loss, which you offset in later years.
Does the employer pay for the master’s degree?
Not automatically. Whether your employer covers the costs, contributes to them or releases you is something you agree with the employer, ideally in writing before enrolment. Clarify with the payroll office in advance whether a contribution remains tax-free. You can deduct only costs that you bear yourself.
Am I covered by student health insurance during a part-time master’s degree?
Usually not. As an employee you are compulsorily insured through your job, and student health insurance applies only without a priority insurance. You still need a confirmation from your statutory health insurer for the university. With at most 20 hours a week and predominantly study, student assistant status may apply.
What does a part-time master’s degree cost?
It depends on the provider. State universities do not charge general tuition fees, but they do charge a semester contribution and, in some federal states, administration fees of around 50 euros per semester. Private providers and continuing education master’s programmes set their own fee. Ask for the total sum until graduation.
Is there funding for a part-time master’s degree?
Yes, to a limited extent. The Germany Scholarship pays 300 euros a month if the university selects you. The Education Loan and the KfW student loan are loans with fixed requirements. The Upgrading Scholarship supports a first degree, usually up to the bachelor’s, and generally does not fit a master’s.
What to do now
- Clarify with the university the format, the attendance dates, the total cost and whether the degree programme is eligible for funding.
- Talk to your employer about contribution, release and working hours, and record everything in writing.
- Request the confirmation for the university from your health insurer.
- From the first semester, collect all receipts and enter the costs in your tax return as income-related expenses.
Related articles
- Second degree: costs, BAföG, child benefit and taxes (in German)
- Master’s or going straight into work: what pays off more? (in German)
- Further training after studies: options at a glance (in German)
- Health insurance for distance learning: compulsory insurance, contributions and special features (in German)
Last updated: October 2026. This guide is general information, not individual advice. The German version is authoritative.
